s) Provision and Contingent Liability
i. A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
that cannot be recognized because it cannot be
measured reliably. The Company does not recognize
a contingent liability but discloses its existence in the
financial statements.
Contingent liabilities, if material, are disclosed by way
of notes and contingent assets, if any, is disclosed in
the notes to financial statements.
ii. A provision is recognized, when Company has a
present obligation (legal or constructive) as a result
of past events and it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation, in respect of which
a reliable estimate can be made for the amount of
obligation. The expense relating to the provision
is presented in the profit and loss net of any
reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provision due to the passage of time
is recognised as a finance cost.
iii. A contingent asset is not recognized but disclosed in
the financial statements when an inflow of economic
benefits is probable.
(B) Other Accounting policies
t) Earnings Per Share
Basic earnings per share is computed using the net
profit for the year attributable to the shareholders' and
weighted average number of shares outstanding during
the year. The weighted average numbers of shares also
includes fixed number of equity shares that are issuable
on conversion of compulsorily convertible preference
shares, debentures or any other instrument, from the date
consideration is receivable (generally the date of their
issue) of such instruments.
Diluted earnings per share is computed using the net
profit for the year attributable to the shareholder' and
weighted average number of equity and potential equity
shares outstanding during the year including share
options, convertible preference shares and debentures,
except where the result would be anti-dilutive. Potential
equity shares that are converted during the year are
included in the calculation of diluted earnings per share,
from the beginning of the year or date of issuance of such
potential equity shares, to the date of conversion.
u) Segment Reporting
Revenue, operating results, assets and liabilities have
been identified to represent separate segments on the
basis of their relationship to the operating activities of the
segment. Assets, liabilities, revenue and expenses which
are not allocable to separate segment on a reasonable
basis, are included under “Unallocated/others”.
v) Cash flow statement
Cash flows are reported using the indirect method,
whereby net profit / (loss) before tax is adjusted for the
effects of transactions of a non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and
financing activities of the Company are segregated
w) Operating cycle
Based on the nature of products / activities of the
Company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents,
the Company has determined its operating cycle as 12
months for the purpose of classification of its assets and
liabilities as current and non-current.
Note 19.2 - The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of
capital
(i) Equity Share Capital
The Company has issued only one class of equity shares having a par value of Rs. 10/- per share which rank pari-passu in all respects including voting rights and
entitlement to dividend.
In the event of liquidation, each share carry equal rights and will be entitled to receive equal amount per share out of the remaining amount available with the Company
after making preferential payments.
(ii) Preference Share Capital
The Authorised Share Capital provides for Preference Shares at a par value of Rs. 10/- , Rs. 100/-, Rs. 1,000/-, Rs. 1,00,000/- and Rs. 10,00,000/-
(A) 75 nos. (previous year 100 nos.) 9.5% Cumulative Redeemable Preference Shares Face Value Rs. 10,00,000/- each
(i) These CRPS shall carry dividend @ 9.5% per annum (cumulative).The CRPS shall be non-participating in surplus and in surplus assets and profit, on winding up
which may remain after the entire capital has been repaid. The CRPS shall carry a preferencial vis-a-vis equity shares with respect to payment of dividend or repayment
of capital. The CRPS shall have a voting right as per the provision of section 47(2) of the Companies Act, 2013. The CRPS shall be redeemed by the Company at par
in nine equal annual instalments of Rs. 250 Lakhs started from 26th March, 2020 and last instalment of redemption will be on or before 26th March, 2028, (ii) On
account of the carried forward losses no dividend on these CRPS have been provided for in financial statements.
(B) 1,202 nos. 9.5% Cumulative Redeemable Preference Shares Face Value Rs. 1,00,000/- each
(i) These CRPS shall carry dividend @ 9.5% per annum (cumulative). The CRPS shall be non-participating in surplus and in surplus assets and profit, on winding up
which may remain after the entire capital has been repaid. The CRPS shall carry a preferencial vis-a-vis equity shares with respect to payment of dividend or repayment
of capital. The CRPS shall have a voting right as per the provision of section 47(2) of the Companies Act, 2013. The CRPS shall be redeemed as per the provision of
the Bilateral Agreement dated 18th April, 2019 (between Company and Canara Bank ) subject to the provisions of the Companies act, 2013 and any other applicable
law for the time being in force,(ii) Scheduled date of redemption (subject to bilateral agreement) :16th December, 2048 (iii) On account of the carried forward losses
no dividend on these CRPS have been provided for in financial statements.
(C) 63 and 38,049 nos. 0.01% Cumulative Compulsory Convertible Preference Shares(CCPS) Face Value Rs. 1,00,000/- and 10,00,000/- each respectively
(i) These CCPS carry cumulative dividend @ 0.01% per annum. The CCPS shall be non-participating in surplus and in surplus assets and profit, on winding
up which may remain after the entire capital has been repaid. The CCPS shall carry a preferencial vis-a-vis equity shares with respect to payment of dividend
or repayment of capital. The CCPS shall have a voting right as per the provision of section 47(2) of the Companies Act, 2013. (ii) The CCPS shall be
Converted into such number of Equity Shares as may be determined at the time of conversion as per prevailing provision of Companies Act/SEBI/RBI Rules
and Regulations and Such equity shares so converted shall be listed on the stock exchanges where existing equity shares are listed and shall rank pari passu.
(iii) The CCPS shall have a maturity period of 29 years from the date of allotment and have right to be converted, at the option of CCPS holders after
20 years or earlier, as per the provision of the Companies act, 2013/SEBI Guidelines as prevailing at that time in to equity shares of the Company.
(iv) On account of the carried forward losses no dividend on these have been provided for in financial statements."
Security and Repayments for Term Loans and Working Capital limits
21.1 400 MW Jaypee Vishnuprayag HEP :
21.1(a) Rupee Term Loans (after conversion of Debt into Equity under SDR
scheme in earlier years) aggregating to Rs.40,863 Lakhs (Previous
Year-Rs. 48,398 Lakhs) outstanding out of sanctioned amount of
Rs. 2,15,000 Lakhs, from Banks, together with all interest, guarantee
commission, cost, expenses and other charges are secured ranking
pari passu among all the participating Banks viz. State Bank of India
[Including loan assigned by Bank of India and Andhra Bank (merged with
Union Bank) during the earlier year], Oriental Bank of Commerce (merged
with Punjab National Bank), Allahabad Bank (merged with Indian Bank),
Dena Bank (merged with Bank of Baroda) and IDBI Bank Ltd. by way of :
(i) First charge on 400 MW Vishnuprayag HEP’s present and future book
debts, operating cash flows, receivables, commissions, revenue of
whatsoever nature ; and
(ii) First charge on 400 MW Vishnuprayag HEP’s all the bank accounts
including the Trust & Retention Account, Escrow Account of Uttar
Pradesh Power Corporation Limited and Debt Service Reserve Account
and each of the other accounts required to be created by the Company
under any 400 MW Vishnuprayag HEP financing document or any
contract.
The loans are inter-alia also secured by way of:
(iii) First charge on 400 MW Vishnuprayag HEP’s all intangible assets,
hypothecation of all the movable assets, assignment of Project
Agreements and Escrow Agreement, all present and future rights, titles,
interests, benefits, claims and demands whatsoever with respect to the
Insurance Policies, claims and benefits to all monies receivable there
under and all other claims there under in respect of all the insured assets
of the Plant ;
(iv) First ranking equitable mortgage on all rights, titles, interests and
benefits in respect of immovable properties and assets of the 400 MW
Vishnuprayag HEP ;
(v) Pledge of 6,291 Lakhs (Previous Year - 6,291 Lakhs) equity shares of the
Company held by Jaiprakash Associates Ltd. (JAL) the party to whom
the company is associate, on pari-passu basis with lenders of Nigrie
Super Thermal Power Plant (except for term loan of Rs. 50,000 Lakhs
(Previous Year - Rs.50,000 Lakhs) disbursed by State Bank of India);
and
Repayments :
21.1(b) Rupee term loan outstanding Rs.40,863 Lakhs (Previous year
Rs..48,398 Lakhs) are repayable in 26 structured quarterly installments,
as detailed as % age of principal outstanding as on 31st March, 2025 ;
10.22 % in FY 2025-26, 15.85 % in FY 2026-27,17.53 % in FY 2027¬
28,16.54 % in FY 2028-29, 14.49% in 2029-30 and balance 25.37 %
from FY 2031 to 2032 .
21.2 500 MW Jaypee Bina Thermal Power Plant:
21.2(a) Rupee Term Loans outstanding (after conversion of Debt into Equity
under SDR scheme in earlier years) of Rs.81,568 Lakhs (Previous
Year Rs.95,965 Lakhs) outstanding out of sanctioned amount of Rs.
2,25,800 Lakhs (original Rs.1,92,800 Lakhs and additional Rs.33,000
Lakhs) from consortium of Banks, together with all interest, guarantee
commission, cost, expenses and other charges are secured ranking pari-
passu among all the participating Banks viz. Punjab National Bank,
Union Bank of India, Allahabad Bank (merged with Indian Bank), Canara
Bank, Central Bank of India, State Bank of India, IDBI Bank Ltd., ICICI
Bank Ltd. and The Jammu and Kashmir Bank Ltd., are secured by ;
(i) First ranking pari-passu mortgage and hypothecation of all immovable
and movables assets both present and future, all intangible assets, and
all revenues and receivables pertaining to Jaypee Bina Thermal Power
Plant and
(ii) First ranking pari-passu charge on, assignment of Project Agreements,
Trust & Retention account. Debt & Service Reserve Account and Escrow
Agreement, all present and future rights, titles, interests, benefits, claims
and demands whatsoever with respect to the Insurance Contracts/ loss
proceeds, claims and benefits to all monies receivable there under and all
other claims there under in respect of all the insured assets of the Plant ;
(iii) Pledge of 648 Lakhs equity shares (Previous Year 648 Lakhs equity
shares) of the Company held by JAL, the party to whom the company is
associate , on pari passu basis among the lenders of JBTPP.
Repayments :
21.2(b) Rupee term loan outstanding Rs.81,568 Lakhs (Previous year Rs.95,965
Lakhs) are repayable in 30 structured quarterly installments, as detailed
as % age of principal outstanding as on 31st March, 2025 ;
3.12 % in FY 2025-26, 13.00% in FY 2026-27, 14.37 % in FY 2027¬
28,13.57 % in FY 2028-29, 11.87 % in FY 2029-30 and balance 44.07
% from FY 2031 to 2034.
21.2(c) The aforesaid security ranks pari-passu with working capital lenders
(i.e. IDBI Bank Limited, State Bank of India and Jammu & Kashmir Bank
Ltd.) having outstanding balance (fund based) of Rs. 14,841 Lakhs
(Previous Year - Rs. 14,383 Lakhs). Bank Guarantees/ LCs outstanding
of Rs.2,039 Lakhs (Previous Year - Rs.1,964 Lakhs) (margin money of
Rs. 1,044 Lakhs against Bank Guarantees/ LCs outstanding) (previous
year Rs.903 Lakhs)
21.3 1320 MW Jaypee Nigrie Super Thermal Power Plant:
21.3(a) Rupee Term Loans (after conversion of part of Debt into Equity under
SDR scheme and conversion of part of Debt into CCPS & CRPS under
restructuring as per Framework Agreement in earlier years) outstanding
of Rs.1,46,843 Lakhs (Previous Year 1,65,168 Lakhs) out of sanctioned
amount of Rs. 7,31,500 Lakhs and out of short term financial assistance
sanctioned amount of Rs, 4,600 Lakhs from consortium Banks and of
Financial Institutions, together with all interest, guarantee commission,
cost, expenses and other charges are secured ranking pari-passu
among all the participating Banks and financial Institutions viz. Punjab
National Bank (PNB), Canara Bank, Central Bank of India, Oriental Bank
of Commerce (merged with PNB), Bank of Baroda, Bank of Maharashtra,
Indian Overseas Bank, Syndicate Bank (merged with Canara Bank), UCO
Bank, United Bank of India (merged with PNB), State Bank of India,
Corporation Bank (merged with Union Bank of India) , IDBI Bank Ltd.,
ICICI Bank Ltd., CFM Asset Reconstruction Private Limited and LIC of
India, are secured by way of :
(i) First ranking pari-passu mortgage and hypothecation of all immovable
and movables assets both present and future, all intangible assets,
and all revenues and receivables pertaining to the Jaypee Nigrie Super
Thermal Power Plant ;
(ii) First ranking pari-passu charge on, assignment of Project Agreements,
Trust & Retention account., all present and future rights, titles, interests,
benefits, claims and demands whatsoever with respect to the Insurance
Contracts, claims and benefits to all monies receivable there under and all
other claims there under in respect of all the insured assets of the Plant
(iii) Pledge of 6,291 Lakhs equity shares (Previous Year - 6,291 Lakhs equity
shares) of the Company held by JAL, the party to whom the company is
associate, on pari-passu basis with lenders of Jaypee Vishnuprayag HEP and
(iv) Letter of Comfort from Jaiprakash Associates Limited, the party to
whom the company is associate, for the additional loan of Rs.1,64,500
Lakhs (Previous Year- Rs.1,64,500 Lakhs) Outstanding Rs. 98,705
Lakhs (Previous Year Outstanding Rs.98,705 Lakhs) {pre-restructuring
balance merged with loan mentioned above in note no. 21.3(a)} in
addition to above securities.
(v) There is a vacant land parcel admeasuring 64.741 Ha. which was
acquired for the purpose of submergence as and when barrage level
went up at Nigrie TPP on which security was to be created in favour of
Lenders. However the same could not be created, as NOC from Govt. of
Madhya Pradesh (GoMP) is yet to be received. In order to give requisite
comfort to the lenders, a valuation exercise was conducted and as per
valuation report, the fair market value of the said land is Rs. 453 Lakhs .
Accordingly in lieu of Creation of Security in favour of the lenders, JPVL
has provided cash collateral of INR 453 Lakhs(previous year Rs. 453
Lakhs) in the form of FD and ICICI Bank has kept lien mark over the said
FD. Further JPVL has also executed undertaking for negative lien on said
parcel of land and given undertaking that the same will not be disposed-
off without approval of the lenders.
Repayments :
21.3(b) Rupee term loan outstanding Rs. 1,46,843 Lakhs (Previous year Rs.
1,65,168 Lakhs) are repayable in 36 structured quarterly installments ,
as detailed as % age of principal outstanding as on 31st March, 2025 ;
8.60 % in FY 2025-26,10.99 % in FY 2026-27,10.99 % in FY 2027¬
28,10.99 % in FY 2028-29 ,10.99 % in FY 2029-30 and balance 47.44
% from FY 2031to 2035.
21.3(c) The working Capital facilities sanctioned by ICICI Bank Ltd, Punjab
National bank and IDBI Bank Ltd. are secured by pari-passu charge
on the assets as per note no. 21.3 (a)(i)(ii) and note no. 21.5(a)(i) and
outstanding balance (fund based) of Rs 26,759 Lakhs (Previous Year-
Rs.26,810 Lakhs). Bank Guarantees outstanding of Rs. 7,158 Lakhs
(margin money paid against above Bank Guarantees is of Rs.1,340
Lakhs) (Previous Year-Rs.6,246 Lakhs (margin money paid against above
Bank Guarantees is of Rs1,340 Lakhs) (previous Year 1,439 Lakhs).
21.4 Jaypee Nigrie Cement Grinding Unit:
21.4(a) Rupee term loan outstanding Rs. 3,005 Lakhs (Previous year Rs. 3,405
Lakhs ) are repayable in in 36 structured quarterly installments, as
detailed as % age of principal outstanding as on 31st March, 2025 ;
8.65 % in FY 2025-26, 10.69 % in FY 2026-27, 10.69 % in FY 2027-28,
10.69 % in FY 2028-29. 10.69 % in FY 2029-30 and balance 48.59 %
from FY 2031 to 2035.
Repayments :
21.4(b) Financial assistance (after conversion of part of Debt into Equity
under SDR scheme and conversion of part of Debt into CCPS under
restructuring as per Framework Agreement in earlier years) of Rs.3,089
Lakhs (Previous Year - Rs. 3,437 Lakhs) availed from consortium
of Banks viz Bank of Baroda, ICICI Bank Limited, Oriental Bank of
Commerce (merged with PNB) and State Bank of India, out of sanctioned
amount of Rs.15,700 Lakhs are secured by way of :
21.5 Amelia (North) coal mine:
21.5(a) Financial assistance (after conversion of part of Debt into Equity
under SDR scheme and conversion of part of Debt into CCPS under
restructuring as per Framework Agreement in earlier years) of Rs.3,089
Lakhs (Previous Year - Rs. 3,437 Lakhs) availed from consortium
of Banks viz Bank of Baroda, ICICI Bank Limited, Oriental Bank of
Commerce (merged with PNB) and State Bank of India, out of sanctioned
amount of Rs.15,700 Lakhs are secured by way of :
(i) First charge on the assets of Amelia (North) Coal Mine ranking pari
passu with the term and working capital Lenders of Jaypee Nigrie Super
Thermal Power Plant as per Note 21.3 (c) above (except assets which
were specifically financed under equipment finance facility by SREI
Equipment Finance Company Ltd., which shall be excluded from security
package for lenders) on reciprocal basis.
Repayments :
21.5(b) Rupee term loan outstanding Rs. 3,089 Lakhs (Previous year Rs. 3,437
Lakhs ) are repayable in in 38 structured quarterly installments, as
detailed as % age of principal outstanding as on 31st March, 2025 ;
3.29 % in FY 2025-26, 9.28 % in FY 2026-27, 10.51 % in FY 2027-28,
10.51 % in FY 2028-29 ,10.51 % in FY 2029-30 and balance 55.90 %
from FY 2031 to 2035.
21.6 (a) Rupee Term Loan/Corporate Loan:
(i) Rupee Term Loan of Rs. 2,426 Lakhs ( Previous Year - Rs. 2,659 Lakhs)
(after conversion of Debt into Equity under SDR scheme in earlier year)
outstanding out of sanctioned amount of Rs. 1,00,000 Lakhs by State
Bank of India, is secured by way of residual charge on all movable and
immovable assets of the Company on pari-passu basis with, Corporate
Loan of Rs.1,20,000 Lakhs & Rs. 15,000 Lakhs by ICICI bank & IDBI
Bank respectively and also secured by way of pledge of 1,500 Lakhs
equity shares of the Company held by JPVL Trust (Previous Year-1,500
Lakhs equity shares) .
(ii) Rupee Term Loan of Rs. 48,364 Lakhs ( Previous Year - 54,383 Lakhs)
(after conversion of Debt into Equity under SDR scheme in earlier
years) outstanding out of sanctioned amount of Rs. 1,20,000 Lakhs
by ICICI Bank, is secured by way of residual charge on all movable and
immovable assets of the Company on pari-passu basis with Corporate
Loan of Rs.1,00,000 Lakhs by State Bank of india, Corporate Loan of
Rs.15,000 Lakhs by IDBI Bank and also secured by way of pledge of
3.860 Lakhs equity shares of the Company held by JAL (Previous Year-
3.860 Lakhs equity shares) and pledge of 192.11 Lakhs equity shares of
the Company held by JPVL Trust (Previous Year-192.11 Lakhs) and Non
Disposal Undertaking for 1,021.89 Lakhs equity shares of the Company
held by JAL (Previous Year-1021.89 Lakhs)
(iii) Rupee Term Loan of Rs. 6,760Lakhs ( Previous year - Rs.7,476Lakhs)
outstanding out of sanctioned amount of Rs. 15,000 Lakhs by IDBI Bank
, is secured by residual charge on all movable and immovable assets of
the Company on pari-passu basis with Corporate Loan of Rs.1,00,000
Lakhs by State Bank of india, Corporate Loan of Rs.1,20,000 Lakhs by
ICICI bank and also secured by way of pledge of 315 Lakhs equity shares
(Previous Year 315 Lakhs) of the Company held by JPVL Trust , pledge of
1,206 Lakhs shares( Previous Year 1206 Lakhs shares) of the company
held by JAL, the party to whom the company is associate and personal
guarantee of Shri Manoj Gaur, Chairman of the Company.
Repayments :
(iv) Corporate loan - Rupee Term Loan outstanding of Rs.57,550 Lakhs
(Previous year Rs. 64,518 Lakhs) is repayable in 38 structured quarterly
installments, as detailed as % age of principal outstanding as on 31st
March, 2025 ;
2.38 % in FY 2025-26, 8.84 % in FY 2026-27, 9.75% in FY 2027-28,
9.75% in FY 2028-29 ,9.75% in FY 2028-29 and balance 59.53 % from
FY 2031 to 2035.
21.6(b) The outstanding loans balances are excluding Ind AS adjustment of
Rs.1,036 Lakhs (previous year Rs. 1,223 Lakhs).
21.7 All above term loans/debts and working capital facilities mentioned in
note no. 21.1,21.2, 21.3, 21.4,21.5 & 21.6 are also additionaly secured
by personal guarantee of Shri Manoj Gaur, Chairman of the Company.
21.8 Resolution/ Revival plan
(i) The financial performance and cash flows of the Company had been
adversely impacted by the overall stress in the power sector and also due
to specific challenges faced by the Company in the previous year(s) in
its Thermal Power Plants, viz. Nigrie Super Thermal Power Plant (Nigrie
STPP) and Bina Thermal Power Plant (Bina TPP), prominent of which
are de-allocation of coal mines by the Hon’ble Supreme Court of India
in September 2014, delay in new PPAs in Nigrie STPP abnormally low
merchant tariffs and insufficient availability of coal, lower PLF in Bina
TPP due to dispatch schedule of very low off take by State loan Dispatch
Centre (SLDC), which is technically not feasible to run the plant optimally
and forcing Company to sell balance power on power exchanges at
market driven tariff resulting unremunerative prices and insufficient
availability of coal etc. These factors have put significant strain on the
Company’s ability to service the dues of lenders.
(ii) Lenders had invoked SDR during financial year 2016-17 as per RBI
guidelines for stressed assets. Consequent to that the Company had
allotted 30,580 lakhs equity shares at Rs.3,05,800 lakhs on 18.02.2017
to Banks and Financial Institutions upon conversion of part of their
outstanding loans/ interest. The lenders shareholding stood at 51% as
on 18.02.2017, which stands reduced to 17.09 % as on 31.03.2025
of paid up capital of the Company. The lenders who are holding equity
share capital of the Company, had to offload the shareholding as per
RBI guidelines. The lenders had invited bids for divestment of part of
their equity in the Company in earlier year. Since the response was not
satisfactory, lenders closed the process.
(iii) The Company had signed a ‘Framework Agreement’ (the Agreement)
dated 18th April 2019 with the Banks and Financial Institutions for
restructuring of the outstanding Loans (in respect of its units JNSTPP
JBTPP VHEP JNCGU including Corporate Loans) & interest accrued
thereon as of 31st July 2018 with the revised terms & conditions.
In terms of ‘the Agreement’ and as agreed upon, the Company had
allotted (i) Fully paid 0.01% Cumulative Compulsory Convertible
Preference Shares (CCPS) for an aggregate amount of Rs.3,80,553 lakhs
on 23.12.2019 and (ii) Fully paid up 9.50% Cumulative Redeemable
Preference Shares (CRPS) for aggregate amount of Rs.3,452 lakhs
(CRPS of Rs.1,202 lakhs and Rs.2,250 lakhs allotted on 16.12.2019
and 23.12.2019 respectively), to its lenders on private placement basis.
In view of the above ‘Framework Agreement’ and post filing of withdrawal
pursis by ICICI bank before the Ahmedabad Branch of National Company
Law Tribunal (the NCLT), the NCLT had allowed ICICI bank to withdraw its
Insolvency and bankruptcy petition (earlier filed u/s 7) vide Order dated
10th January 2020. On the signing of ‘the Agreement’, Corporation Bank,
which had initiated recovery proceedings against the Company in Debts
Recovery Tribunal-III (DRT), New Delhi, had filed an application for the
withdrawal of original application, which had been allowed by DRTIII, New
Delhi in the hearing held on 03 rd February, 2020. In view of implementation
of Debt Resolution Plan as stated above, some of the lenders who
had earlier initiated action under the SARFAESI Act, were withdrawn
all such legal proceedings against the Company during earlier years.
(iv) (a) Repayment schedules and interest rates of secured lenders
mentioned herein the note no. 21 is in accordance with Framework
Agreement dated 18th April 2019 (the agreement)
(b) As per the terms of the agreement, if in the opinion of the Lenders,
the profitability and cash flows of the Company improves, the
Lenders shall have the right to receive recompense for the sacrifices
made by them in accordance with the IRAC Norms. Provided that
the maximum amount of recompense should be limited to the sum
of waivers provided by the Lenders and the present value of future
economic loss on account of reduction in interest rate and/or on
account of any changes to the repayment schedule. Presently as
assessed by the management, no recompense is payable to lenders.
21.9 Unsecured Loans
(i) Unsecured loan outstanding of Rs.1,000 Lakhs (interest free)(Previous
Year Rs.1,000 Lakhs) is repayable to Government of Uttarakhand/ Uttar
Pradesh against sanctioned amount of Rs. 2,500 Lakhs, which would be
paid after having decision arrived between Government of Uttar Pradesh
and Government of Uttarakhand for receipt of said payment.
21.10 Impact of the above stated Agreement’ (the Agreement as stated in note
no. 21.8(iii)) had been given in earlier year to the extent information/
confirmation received from the lenders. Further, balances of certain
lenders, banks and other liabilities are subject to confirmation/
reconciliations. In the opinion of the management, there will not be any
material impact on confirmation/reconciliations.
21.11 Interest rates (excluding penal interest) on above loans are as follows:
(i) Vishnuprayag HEP Loans: Interest rate at 9.50% till 17.04.2024
thereafter at 10.00% p.a.
(ii) Bina TPP Loans (including working capital facility): Interest rate at
9.50% till 17.04.2024 thereafter at 10.00% p.a.
(iii) Nigrie STPP Loans (including working capital facility): Interest rate at
9.50% till 17.04.2024 thereafter at 10.00% p.a.
Note 45.1
The commitment includes Rs 1,32,279 lakhs (net of advances paid of Rs 10,800
lakhs) related to Flue Gas Desulfurization (FGD) projects at Bina and Nigire site.
During the financial year 2024-25 in anticipation of the circular dated 30.12.2024
issued by MoEF&CC for the extension of timeline for installation of FGD from
31.12.2026 to 31.12.2029. JPVL had issued Letters of Suspension of the
Contracts/LOAs to its suppliers/vendors vide letters dated Nov.19, 2024 and Nov.
21, 2024 for both the Projects, i.e. Bina and Nigrie. Discussions with the vendors
are under progress/on-going to work-out the methodology for the installation of FGD
with deferred Schedule. Company have also filed the petition for seeking appropriate
directions regarding timeline for installation of FGD System from Madhya Pradesh
Electricity Regulatory Commission on Feb. 26, 2025 for Bina and Feb. 24, 2025
for Nigrie. Further course of actions would be taken based on outcome of various
discussion with vendors and directions/results of the petition.
Note 46 - Investment in Subsidiaries:
(a) Jaypee Arunachal Power Limited (JAPL), the wholly-owned subsidiary
company of JPVL was in the process of setting up 9x300 = 2700 MW
Lower Siang H.E. Project and 4x125=500 MW Hirong HE Project in the
State of Arunachal Pradesh and the Company has equity investment of
Rs. 22,872 lakhs (project was initiated in the year 2008-09 and material
amount of investment in the subsidiary company was made prior to
2012-13). There was considerable delay in the obtaining different
approvals etc. and also to get final DPR, the Government of India had
proposed that this project to be implemented by central PSUs in the FY
21-22. While one of the PSU had been engaged with the company for
takeover of the project and even appointed agency for carrying out due
diligence in FY 2022-23, subsequent to the Government of Arunachal
Pradesh’s review meetings (were held in the month of November’23 and
January’24) on the status of the project, it was communicated to the
JAPL that existing DPR may not be useful to the PSU.
During the previous year 2023-24,In view of facts stated above,
and continuous reluctance of PSUs to engage on these projects and
the possibility of the above referred projects coming into effect has
diminished and also JAPL has written off expenses incurred on the
project of Rs.22,299 lakhs, therefore, during year ended 31st March,
2024, based on the report of an expert and as assessed by the
management, the Company has provided for Rs 22,871 lakhs against its
equity investment in the JAPL and charged off to standalone statement
of profit and loss, and shown as part of exceptional item in FY 2023-24.
As on 31.03.2025 company has shown investment in JAPL at nominal
value of Rs 1 Lakhs
(b) In the earlier year, State Government of Meghalaya had advised that
the 270 MW Umngot HEP will not be operationalised till further Orders
and during the financial year 2020-21 State Government of Meghalaya
had forfeited the up front fees paid amounting to Rs. 135 Lakhs in
pursuance of the termination of Agreement for 270 MW Umngot HEP.
Accordingly,Company had provided for amounting to Rs. 135 Lakhs as
diminution in value against investment of Rs. 846 Lakhs in FY 2020¬
21. During the year 2022-23, Company had made further provision for
diminution in value of investment in Jaypee Meghalaya Power Limited
(Subsidiary Company) amounting to Rs. 711 Lakhs.
(c) Sangam Power Generation Company Limited (SPGCL, a Subsidiary
Company) was acquired by JPVL (the Company) from Uttar Pradesh
Power Corporation Ltd (UPPCL) for implementation of 1320 MW Power
Project (Karchana STPP) in Uttar Pradesh in which the Company has
investment of Rs. 55,212 lakhs (31st March, 2024 Rs.55,212 lakhs). In
the books of SPGCL, amount aggregating to Rs.16,055 lakhs (excluding
value of land parcel) is shown as expenditure incurred during the
construction and incidental to setting up of the project, capital advances
etc. and same been carried over since long and the Net Worth of
SPGCL has been eroded significantly as on 31st March, 2025. In view
of abnormal delay in handing over the physical possession of parcel
of land by UPPCL, SPGCL had written to UPPCL and to all procurers
of power that the Power Purchase Agreement (PPA) be rendered void
and cannot be enforced. As advised, SPGCL had sent draft Share
Purchase Agreement (SPA) to UPPCL / UPRVUNL for their approval but
there was abnormal delay in resolving the matter by UPPCL, therefore
SPGCL had withdrawn all its undertakings given to UPPCL and also
filed a petition before Hon’ble UPERC (State Commission) for release
of performance bank guarantee (PBG of Rs. 99 crores) and also for
payment against claim lodged of Rs 1,15,722 lakhs. UPERC vide its
Order dated 28.06.2019 had allowed claim (of SPGCL) for Rs.25,137
Lakhs along with interest @ 9% p.a. on Rs.14,925 lakhs for the
period from 11.04.2014 to 31.03.2019 and also directed UPPCL to
immediately release PBG to SPGCL and SPGCL to transfer the entire land
parcel to UPPCL. Against the above order, UPPCL appealed in APTEL
and SPGCL had also filed counter appeal. APTEL vide its order dated
14th July, 2021, upheld the State Commissions Order dated 28.06.2019
and directed State Commission to complete the verification of relevant
documents of the claim filed by SPGCL within a period of three months
from the date of pronouncement of the judgment and to crystallize the
total amount to be paid to SPGCL. SPGCL had filed an application with
Hon’ble UPERC for verification of expenditure and payment thereof and
for release of PBG. Meanwhile, UPPCL has filed an appeal with Hon’ble
Supreme Court against above mentioned order of APTEL and Company
has also filed an appeal with Hon’ble Supreme Court against the order of
APTEL. Hon’ble Supreme Court has stayed the Order of APTEL. Further
pursuant to the Order of Hon’ble Supreme Court dated 14th December
2021, application filed with Hon’ble UPERC by the Company-SPGCL, as
stated above, has been kept in abeyance. Currently as on 31.03.2025,
matter is pending before Hon’ble Supreme Court..
Pending final decision as stated above, considering the facts stated
above regarding settlement of claims (claims and counter claims),
the management after taking into consideration the present state of
affairs and based on the report of an expert, during the previous year
ended 31st March,2024 has considered it necessary and provided for
Rs.33,025 lakhs against above stated investment and charged off in the
standalone statement of profit and loss, and same is shown as part of
exceptional item in FY 2023-24.
Note 47
In respect of investigation conducted by the SEBI, the Company and its four
Directors, MD and CEO, and CFO had been served Show Cause Notice (SCN)
in earlier year under Rule 4(1) of SEBI (Procedure for holding inquiry and
imposing penalties), Rules, 1995 on issues related with non-compliances
of certain accounting standards/ Ind AS etc. during period from financial
years 2012-13 to 2021-22, SEBIVide its Order dated 27th December 2024
has imposed a penalty of Rs. 14 lakhs on the Company (excluding penalty of
Rs.40 lakhs imposed on MD & CEO, CFO and four directors).The management
believes that there was no non-compliances in past as full disclosers were
made for the basis of then decision taken,and will be no material impacts of
this on profit for the year ended 31st March, 2025 and on the state of affairs.
The Company had preferred an appeal before SEBI Appellate Tribunal (SAT)
against the above referred SEBI Order, decision of which is awaited. However,
SAT vide its order dated 6th March, 2025 was pleased to stay the recovery
subject to deposit of 50% of penalty imposed by SEBI. The 50% penalty was
deposited in time by all the notices.
Note 48 Entry Tax
(i) The Company has not made provision against Entry Tax in respect of
Nigrie STPP (including Nigrie Cement Grinding Unit) of amounting to
Rs.10,871 Lakhs (Previous year Rs.10,871 Lakhs) and interest thereon
(Interest impact unascertainable). In respect of Unit- Nigrie STPP
(including Nigrie Cement Grinding Unit) receipt of approval for extension
of the time for eligibility of exemption from payment of Entry Tax is
pending from concerned authority, for which the company has made
representations before the concerned authority and management is
confident for favourable outcome. Against the above entry tax demand,
till date Rs.6,685 Lakhs (Previous year Rs. 6,685 Lakhs) has been
deposited (and shown as part of other non-current assets) which is in
the opinion of the management good and recoverable.
(ii) In respect Bina TPP Company has received letter dated 20.03.2020
of Entry Tax Exemption from Madhya Pradesh Industrial Development
Corporation Limited (Govt of Madhya Pradesh Undertaking) for the
period commencing from 02.04.2012 and ending on 30.06.2017 for
UNIT-1 and 12.03.2013 and ending on 30.06.2017 for UNIT-2. The
Company had filed necessary application/appeals with appropriate
authority for getting quashed all demands raised by commercial tax
department and Hon'ble High Court of Madhya Pradesh vide its
Orders dated 26th April 2023 have directed the competent authority
under the Revenue to reassess the demand raised by it with regard
to payment of Entry Tax for the financial year 2014-15 and 2015¬
16 taking into consideration the restoration of exemption certificate .
Accordingly,during the previous year, Company has received Orders of
the competent authority(s) quashing the entry tax demands raised in
earlier years of Rs. 12,206 lakhs for FY 2012-13 to 2016-17 considering
entry tax exemption certificates and has allowed for refund of amount
deposited of Rs. 2078 lakhs (previous year Rs. 2078 lakhs). Basis
Orders of the competent authority(s), Company has filed letter with Joint
Commissioner , State GST Department, Sagar, Madhya Pradesh for
giving effect of the above stated Orders which is pending and in opinion
of the management amount good and recoverable.
Note 49(A) - Disputed Green Energy Cess & Water Tax (Vishnuprayag HEP)
The Company has not made provision of amounting to Rs.15,433 Lakhs
(Previous year Rs.13,844 Lakhs) and Rs. 5,808 Lakhs (Previous year Rs.
5,808 Lakhs) of Green Energy Cess and Water Tax respectively against the
demand and an appeal had been filed before The Hon’ble High Court of
Uttarakhand at Nainital which had granted stay in January, 2017. Subsequently
in February'2021, in case of water cess, Hon'ble High Court of Uttarakhand at
Nainital passed a common Order against the Company through a common
judgement for all petitioners against which a special appeal had been filed in
March,2021 before division bench headed by Hon'ble Chief Justice of Hon'ble
High Court of Uttarakhand at Nainital and stay has been granted against the
Order passed in February,2021 for Water cess. Currently matters are pending
in the Hon’ble High Court of Uttarakhand at Nainital. However High Court vide
its order dated 12.07.2022, in respect of the appellants / writ petitioner who
had established by filing their affidavits, that they have not, in fact, collected
water tax, and not passed on the said liability to their customers, there shall be
stay of recovery of water tax till 31st of July, 2022 but they shall commence
paying the water tax dues levied under the impugned legislation from 1st of
August 2022, onwards subject to final orders. As per direction, the Companyis
is paying water tax from August 2022. The Management is confident that no
demand will be crystallized due to the amended implementation agreement
dated 22nd March, 2003 in which it has mentioned that Vishnuprayag HEP
being a run of the river scheme, shall utilize the flowing water of the river to
generate electricity. Such right to utilize water available upstream of the project
are granted by Government of Uttaranchal for non-consumptive use without
charging any royalty, duty, cess or levy of any kind.Also, Ministry of Power
vide its notification dated 25.04.23 has advised that all state that not to levy
taxes/duties by any state under guise on generation of electricity and if any
taxes/duties have been levied , It may be promptly withdrawn.
UPERC vide its Order dated 13.03.2024 has directed UPPCL to reimburse
company the water tax paid by company to Government of Uttarakhand for
operations of plant, till any decision on the matter by High Court Uttarakhand.
Accordingly, water tax paid by the Company is being claimed & recovered
from UPPCL.
Note 50
Disclosure as required under Notification No. G.S.R.(E) dated 4th September,
2015 issued by the Ministry of Corporate Affairs w.r.t MSME (to the extent
available and as certified by the Management):
Note 51
The JAL has been engaged by the Company to carry out construction,
repairs & maintenance work under different contracts and total advance
amounting to Rs. 3,434 lakhs (net)((balance as per books as on 31st March
2025) was paid to JAL.As stated in note no 44(e), the RP of JAL had made
public announcement for inviting claims of operational creditors and financial
creditors, and the Company has also filed claims its for Rs.128,756 lakhs (net)
with the IRP [including claim against corporate guarantee provided as stated
in note no 44(e)] as of 3rd June 2024. Presently, the company is awaiting
further updates in the matter. Considering above stated facts and status, the
Company has considered, not necessary to make provisions against the
outstanding advance amount of Rs.3,434 lakhs (net)and same is considered
fully recoverable.
Note 52
In respect of JBTPP billings amounting to Rs. 17,706 lakhs {till 31st March
2024 Rs. 17,706 lakhs including claims on account of non-scheduling of
power (RSD) of Rs.10,459 lakhs} raised on MPPMCL (Madhya Pradesh
Power Management Company Limited) for capacity charges for five (5)
months of year 2020 has been disputed by MPPMCL as notice of invoking
force majeure clause had been served and/or non-scheduling of power
by MPPMCL. In the Opinion of the Management, considering the prevailing
Madhya Pradesh Electricity Grid Code (revision -ii), 2019 (MPEGC, 2019)
and based on opinion of an expert (legal opinion taken by the Association of
Private Electricity Generating Stations of MP), the MPPMCL is liable to make
payment of capacity charges for declared availability of Contracted Capacity
under PPA and for which invoices had been raised in terms of PPA signed
between company and MPPMCL (also invoice of delayed payment surcharge
of Rs. 3,795 lakhs raised for the period till Oct’2021, in addition to above stated
amount). In earlier year, the Company had filed an appeal with APTEL against
the Order of MPERC for not allowing the petition filed by the Company for
recovery of unpaid capacity charges on account of non-scheduling of power
(RSD) by MPPMCL and also MPPMCL had filed an appeal with APTEL against
the Order of MPERC allowing recovery of unscheduled capacity charges
(force majure) in favour of the Company. During the FY 23-24, the APTEL had
granted stay on the Order of MPERC on the appeal of MPPMCL in the matter
of Force Majeure issue on payment by MPPMCL to the Company of 80% of
amount payable (Rs.6,249 lakhs), which had been then paid by MPPMCL to
the Company in FY 23-24. During the current year, the Hon’ble APTEL has
ordered MPPMCL for the release of amount related with non-scheduling of
power (RSD) by MPPMCL (with late payment surcharge to the Company).
Accordingly, Company has claimed (taking into consideration impact of true-
up/MYT orders) of capacity charges (RSD) of Rs. 20,002 lakhs (including
delayed payment surcharge of Rs.9110 lakhs till October 2024) against which
MPPCL has paid Rs. 15,298 lakhs till 31st March 2025. Considering above
stated facts, stated above, balance amount of Rs.11,027 lakhs (including
balance amount related to Force Majure and delayed payment surcharge
thereon),which is overdue for payment, is good and fully recoverable, in the
opinion of the management.
Note 53
(a) During the current year ended, based on Management assessment,
fair valuation of long-term investment in Trust has been carried out.
Accordingly, fair valuation loss of amounting to Rs. 3,441 lakhs (previous
year gain of Rs. 33,376 lakhs) has been charged to statement of profit
and loss and included in other Expenses (previous year in other Income).
Note 54
(a) The Company had been carrying out sand mining activities in the State of
Andhra Pradesh (AP) in terms of and as per the main contract(s) (three
nos.) dated 3rd May 2021 signed with Director Mines & Geology (DMG),
Govt of Andhra Pradesh for a period of two years and the said contract(s)
were sub -contracted on back-to-back basis and DMG was informed/
intimated in this regard (and the escrow account was pending to be
operated in terms of the contracts with DMG).Further as required under
the contract terms, Performance Bank Guarantees of Rs. 12,000 lakhs
was provided by the sub-contractor to the DMG.The contract period of
said contract(s) were over in May 2023, and the Company was allowed
by DMG, for sale of sand from the stock till November 2023.
During the year ended 31 st March, 2024, the balance unsold stock
(including sand stock which washanded over by APMDC, Prakasam)
has been taken over by the DMG with dues payable to APMDC for the
Assets handed over by them, advance outstanding of Andhra Pradesh
State Housing Corporation Limited (APSHCL) and balance dues of DMG
then had been adjusted there against as per letters / statements of DMG.
Basis ‘No due certificate’ of DMG and as per the statement received from
DMG, no amount is /were remaining to be payable by the Company to
DMG.
(b)(i Subsequently, during the current financial year, the Company has
received show cause notices /demand notices (‘notices’) aggregate of
amounting to Rs.1,79,083 lakhs (including amount estimated based on
show cause notices of Rs.10,468 lakhs) from various district office(s)
of DM Galleging illegal extraction, storing, transportation and selling of
sand and the Company has suitably replied. The Company has disputed
the notices, as notices which DMG has issued, basis inspection/survey
carried out by the offices of DMG after gap of considerable period when
above all contracts of the Company with DMG were got expired and
also another agency had been engaged to carrying out sand mining
operations for period more than six months, by DMG and in this regard
summons-notices has been issued by the GST Authority. For above, DMG
has filed FIRs against the Company and its officials. The management
believes that liability in this regard has duly been discharged by the
sub-contractor (party who was carrying out the sand mining activities)
as DMG has provided ‘No due certificate’ and also DMG had released
the Bank Guarantees provided by the sub-contractor to the DMG for
the above stated contracts. The Hon’ble High Court of AP has granted
interim stay in respect of notices to the extent of Rs. 1,68,615 lakhs
and for balance amount (estimated) based on show cause notices,
the Company has filed its replies to the concerned officials (DMG).The
Company has been legally advised that the Company has creditable case
in its favour considering the above stated facts that all the contracts
were Sub-contracted on back-to-back basis and Sub-contractor was/
is responsible/liable under the Contracts terms, other facts stated above
and in the opinion of management, it is not necessary to make any
provision in this regard and there is/will be no impact on profit as well as
on the state of affairs of the Company.
(b)(ii) As stated above all contracts were sub-contracted on back-to-back
basis and in earlier year/period, purchases, sale and inventory were
accounted for based on details/statement as made available by the sub-
contractor/ DMG. Balance in the account of sub-contractor is pending
for the confirmation and reconciliation as on 31st March, 2025. In the
opinion of management, there will be no material impact on the financial
statements for the year ended 31st March 2025 and state of affairs of the
Company on final reconciliation/confirmation. The management believes
that action initiated by the DMG as stated in para (a) above will have no
impact as contract was sub-contracted on back to back basis and DMG
was informed in this regard, and (b) after expiry of contract period(s)
new party engaged by DMG to carry out sand mining operations.
Note 55
In view of fair value for all property, plant & equipment of power plants
(Jaypee Nigrie Super Thermal Power Plant and Jaypee Bina Thermal Power
Plant) (including Land, Building, Plant & Machinery capitalized or under CWIP)
being excess as compared to the carrying value, as estimated by a technical
valuer, management does not anticipate any impairment amount which is to be
provided at this stage in the financial statement in the value of property, plant
and equipment (including capital work-in-progress) based on the condition of
plant, market demand and supply, economic and regulatory environment and
other factors.
Note 56 Jaypee Nigrie Cement Grinding Unit
2.0 MTPA cement grinding unit of the Company namely Jaypee Nigrie Cement
Grinding Unit (JNCGU) which commenced commercial operation in June,
2015. However, there was negligible/substantially low production during the
past over 2 years.
Fair value of JNCGU being excess as compared to the carrying value of
Rs. 18,644 Lakhs (previous year Rs. 19,467 Lakhs) as assessed by the
management considering the report of valuer after taking and/or into expected
future cash flows, Also management is of the view that no impairment provision
in the carrying amount of property, plant & equipment (including capital work in
progress) is necessary at this stage considering above stated reason.
Note 57
(a) Exceptional items include for the year ended 31st March, 2025 Rs. NIL
and for the year ended 31st March, 2024: (A) Amount provided for
Rs. 55,896 lakhs against investment made in subsidiary companies
{note no. 46(a) and 46 (c) above}; (B) Escalation amount of additional
bid premium related to Amelia Coal mine 23,809 lakhs (note no. 57(b)
below).
(b) As per Coal Mine Development and Production Agreement (CMDPA) in
respect of Amelia (North) Coal mine signed with Government of India
(GOI) - the fixed rate and additional premium payable on coal quantity
extracted was to be subject to escalation on yearly basis based on
escalation formula for Design, Build, Finance Own and Operate (DBFOO)
to be finalised by GoI. The Nominated Authority, Ministry of Coal, GOI
vide its letter dated 25th October, 2023 finalised the escalation price
for the first year of production and also for the subsequent years i.e.
the escalated reserve price for the FY 2015-2016 to FY 2023-2024.
Accordingly, escalation amount for the earlier years of Rs. 23,809 lakhs
(including GST) (till 2022-23) was payable by the Company to the state
government in equal four quarterly instalments. During the F.Y 2023-24
, the Company had made provision Rs. 23,809 Lakhs and charged the
same to statement of profit and loss (shown as part of exceptional item
in previous year 2023-24) and the same has paid as per directions of the
Government.
Note 58
(a) During the FY 2022-23, Company had been declared successful bidder
by Nominated Authority, Ministry of Coal, Government of India for Bandha
North Coal Block located in Madhya Pradesh state. The Company is in
the process of complying with necessary/ applicable conditions of Coal
Block Development and Production Agreement/allocation order/tender
documents. Initial outlays, as estimated by the management, for coal
block would be Rs.8,000 lakhs (including fixed amount deposited of Rs.
3,868 lakhs and amount of bank guarantee of Rs. 1,560 lakhs given in
this regard). Till March 31,2025 Rs. 6,627 lakhs(Till March 31,2024 Rs
4,532 Lakhs (inclusive of fixed amount deposited of Rs.3,868 lakhs )
expenses has been incurred with regard to Bandha Coal Mine and the
same is shown as part of intangible assets under development.
(b) On account of outbreak of Coronavirus (Covid-19), during the period
from March,2020 to 31st March,2021 there was lockdown/frequent-
partial across the country/part of the country for a significant period
and there were disruption in business activities and the Company had
continued to generate and supply electricity to its customers, which was
declared as an essential service by the Government of India. However
the Company had received notice, in earlier year for invoking force
majeure clause provided in the power purchase agreement (PPA) from
M.P Power Management Company Limited (MPPMCL) and UPPCL in
respect of units JNSTPP & JBTPP and VHEP respectively and also from
PTC with whom Company has short term PPA, which had been suitably
replied by the Company /clarified that the said situation is not covered
under force majeure clause, considering generation and distribution of
electricity falls under essential services vide notification dated March 25,
2020, issued by Ministry of Home Affairs, Government of India. Also,
the Power Ministry had clarified on April 6, 2020 that the parties to the
contract to comply with the obligation to pay fixed capacity charges as
per PPA to the Power Producers.
Note 59
(a) Pending confirmations/reconciliation of balances of certain secured
[including interest recompense, note no 44 (g)] and unsecured
borrowings, trade receivables and trade payables (including MSME
parties, CHAs and of Sub-contractor [read with note no. 54 of the audited
standalone financial statements]) and others current financial liabilities
(including capital creditors), receivables/payables from/to related
parties, loans & advances and inventory lying with third parties/in transit
balances as per the books has been considered. The management is in
the process of reconciliation /confirmation of the same and is confident
that there will not be any material impact on the profit for the year and
the state of affairs of the Company on such reconciliation /confirmation
(this is to be read with note no. 21.10).
(b) In view of the financial constrains and to get longer credit period the
company is procuring Coal for power generation by making arrangement
with coal handling agents (CHAs) (who engaged for lifting and
transportation of Coal from different collieries). Sometimes there have
been delays in supply of Coal by CHA(s) as they had to procure coal
from mines located at distance places and having substantial value
and volume and also quality variance. The management is in process
to further strengthen its internal control over handling /transportation,
receipt, consumption etc of coal through process automation. Also, the
Company has regular system of physical verification which is carried out
by independent third party.
(c) Overdue receivables of amounting to Rs.52,499 Lakhs (including delayed
payment surcharges of Rs. 11,743 lakhs on delayed payment/overdue
receivables) (net off amount received as per APTEL order during the
year, refer to note no. 52) {Previous year Rs. 55,583 Lakhs (including
delayed payment surcharges of Rs. 11,743 lakhs on delayed payment/
overdue receivables)} [including of matters mentioned in note no. 44(h)
and 52] for which management has initiated legal and other persuasive
action for the recovery and is confident about the recovery/realisation of
the same. Accordingly these been considered good and realisable by the
management.
(d) In earlier year, the Company had claimed Additional Coal levy of Rs. 295
per metric tonne (levied in view of the Hon'ble Supreme Court judgment
of 2014 on cancellation of nos. of mines) from MPPMCL amounting to
Rs. 2245 lakhs (approx.) in respect of Nigire STPP in Tariff. however the
same was disallowed by MPERC. An appeal was filed with APTEL against
the Order of MPERC, during the previous year, APTEL has not accepted
the appeal and confirmed that additional levy of Rs. 295 per metric tonne
imposed on original allottees of the captive coal block does not entitled to
be included in the determination of the generation tariff to be passed on
to the end consumers. In view of the order of APTEL,Company has made
provision of Rs. 2,245 lakhs during the previous year against the amount
shown as recoverable. Company has filed an appeal in Hon'ble Supreme
Court against the above stated order which is pending.
(e) In earlier years, one of the Capital supplier, having outstanding balance of
Rs.11,742 Lakhs as on 31.03.2025 (previous year Rs.11,742 Lakhs),
had initiated arbitration proceedings against the Company. During the
previous year, Arbitral Tribunal has pronounced its award(s) on 4th
October 2023 and awarded a sum of Rs. 9,154 lakhs in favour of capital
supplier (net off Rs. 2,394 lakhs awarded in favour of the Company)
along with interest and also as per awards company to release the bank
guarantee(BG) provided by the capital supplier and bear the expenses
incurred by the capital supplier for extending BG and Company to bear
the 50% of the arbitral fee paid by the Capital supplier. Company has filed
appeals with Delhi Hight Court against the Order of Arbitral Tribunal and
which is pending. The next date of hearing is 8th July,2025, Accordingly
considering the above stated facts and appeals filed, no additional
provision has been considered necessary by the management at this
stage.(Estimated net claim including interest till 31st march 2025 (net
off balance outstanding in books of Rs 11,742 lakhs) of Rs 8,046 lakhs
has been considered as contingent liability).
Note 60
The annual return of GST for F.Y 2024-25 is under process of filing with
statutory authorities. The Management believe that there will not be any any
material impact over financial statement/filing. The date of filing of GST return
are 31st Dec. 2025 company is yet to file the annual return.
Note 61 Tariff/ Billing/ True up:
(a) Jaypee Bina Thermal, Power Plant (JBTPP):
Capacity charges of JBTPP for control period FY 2024-25 to 2028-29 are
determined by MPERC vide Multi Year Tairff (MYT) Order dated 28.02.2025.
Capacity charges determined for each year are subject to be trued up on
the basis of audited financial statements. During FY 2024-25, invoices
for Capacity Charges have been raised on MPPMCL on the basis of Tariff
approved for same year as determined vide Multi Year Tairff (MYT) Order
dated 28.02.2025. Order for revision of Tariff of FY 2014-15, FY 2015¬
16 and FY 2016-17 have been received during the year and accordingly
Rs 11,899 lakhs (including delayed payment surcharge of Rs 5603 lakhs)
(Previous year 63 Lakhs on account of true up of FY 2022-23) recoverable
from MPPMCL on account of true up has been adjusted in revenue/other
income.
JBTPP has filed the following petitions and proceedings for the same
are in progress:
(i) Appeals with APTEL against True up Orders for Tariff of financial
years from 2017-18 to 2022-23 and MYT Order for 2019-24 for
certain disallowances in tariff. Further appeals regarding recovery
of bills disputed by MPPMCL on account of invoking force majeure
clause is also pending before APTEL. Also, appeal by MPPMCL
against the APTEL order for revision of Tariff of FY 2014-15 FY
2015-16 and FY2016-17 is pending before Supreme Court of
India.
(b) Jaypee Nigrie Super Thermal Power Plant (JNSTPP):
Capacity charges of JNSTPP for control period FY 2024-25 to 2028¬
29 are determined by MPERC vide Multi Year Tairff (MYT) Order dated
28.02.2025. Capacity charges determined for each year are subject
to be trued up on the basis of audited financial statements. During FY
2024-25, invoices for Capacity Charges have been raised on MPPMCL
on the basis of Tariff approved for same year as determined vide Multi
Year Tairff (MYT) Order dated 28.02.2025. No True up Orders has been
received during the current year ( PY true up Order for FY 22-23 received
and impact of the same of Rs. 182 lakhs was accounted).
JNSTPP has filed the following petitions and proceedings for the same
are in progress:
(i) Appeals with APTEL against Trueup Orders for Tariff of financial
years from 2014-15 to 2022-23 for certain disallowances in tarrif.
(ii) Appeal with APTEL for disallowance in Tariff by MPERC in MYT
Order for the period FY 2016-17 to FY 2018-19 and for the period
FY 2019-20 to FY 2023-24.
(iii) Appeal with APTEL for disallowance of capital cost by MPERC in
determination of capital cost vide Order dated 24.05.2017 for FY
14-15 and FY 15-16.
(iv) On the auction of certain coal mines by the Central Government in
earlier year, as per the provisions of rules framed thereunder, the
Amelia (North) Coal Mines was allotted to JPVL for the end use of
power generation at JNSTPP with payment of additional premium
of Rs 612/- per MT.
Additional premium is in the nature of charge payable for getting
the right to mine coal from the captive coal mine allocated to
the Company, and accordingly has been treated as capital cost
for calculation of capacity charges. The same is not accepted by
Regulatory Commission and appeal is pending with APTEL. In the
opinion of the management, the company has credible case in
its favour. Accordingly, the payment made for Additional Premium
has been reflected as Expenditure in the books of accounts of the
company as a matter of principal of prudence. The treatment
of amount paid towards Additional Premium will be revised
accordingly for the purposes of Capacity Charge Calculation on
final settlement /decision of the APTEL.
(c) Vishnuprayag Hydro Electric power plant (VHEP)
(i) In respect of Vishnuprayag HEP Company has accounted for revenue
for the year ended 31st March, 2025 based on provisional tariff
computed in accordance with Power Purchase Agreement (PPA)
and various orders of UPERC and the same is subject to true up.
(ii) Design energy of Vishnuprayag HEP (1774.42 MU) has been
revised considering release of minimum average water flow
from river as per Hon'ble NGT Order dated June 05, 2018 from
03.10.2018 to 14th December 2019 (1695.54 MU) and w.e.f
15th December 2019 (1432.28MU) as per Central Government
notification no SO 5195(E) dated 09.10.2018 and further amended
vide notification no SO 3286(E) dated 14.09.2019 through Barrage
for aquatic life, which is more than the release of water flow as
mentioned in the PPA. The revision of design energy has been
approved by CEA.
A petition was filed with Hon'ble UPERC for amendment in PPA
in respect of Design Energy and Tariff. UPERC vide its Order
dated 22.02.2021 had not accepted the change in design energy
and Ordered that in case actual saleable generation is less than
design energy then full primary energy charges will be paid.
UPPCL has objected the revision in design energy and submitted a
representation with CEA for review of approved design energy on
the grounds that current generation is more than/ equal to original
design generation. An appeal was filed against by the Company the
above Order of UPERC.
APTEL has allowed the appeal vide its Order dated 15.12.2022
and directed UPERC for revision of design energy. Accordingly,
application for revision of Design Energy is filed with UPERC.
UPPCL has filed an appeal with Hon'ble Supreme Court against the
order of APTEL. Hon'ble Supreme Court has granted stay on the
Order passed by APTEL, hence application filed with UPERC is also
stayed.
Currently, Tariff is claimed considering Saleable Design Energy at
1545.87 MU (against revised saleable design energy approved
by CEA at 1247.80 MU after increase in e flow as per directions/
notifications of NGT / MoEF). Tariff will be revised and arrears
alongwith carrying cost will be claimed on account of change in
Saleable Design Energy at 1247.80 MU after decision of pending
Appeal.
Further as per Order in Petition no 1376/2018, UPERC has directed
in para 45 of the Order that in any Tariff Year if actual generation is
less than design energy as mentioned in PPA, the actual generation
will be treated as design energy for computation of primary energy
charges to sacegenerator from any economic loss.
Note 64
(a) Provident Fund - Defined Contribution Plan
Employees are entitled to Provident Fund benefits. Amount debited to Profit and Loss account including Administrative and Employees Deposit Linked Insurance
charges Rs. 843 Lakhs during the period (Previous Year - Rs.763 Lakhs).
(b) (i) Gratuity - The liability for Gratuity is provided on the basis of Actuarial Valuation made at the end of each financial year. The Actuarial Valuation is made on Projected
Unit Credit method as per Ind AS 19. Jaiprakash Associates Limited (JAL) (the Company’s associate company) has constituted a Gratuity Fund Trust under the
name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March, 2009 for JAL and its subsidiaries/ associates and appointed SBI
Life Insurance Co. Ltd. for the management of the Trust Funds for the benefits of employees. As an associate of JAL, the Company is participating in the Trust Fund
by contributing its liability accrued up to the close of each financial year to the Trust Fund.
(b) (ii) The Company has been providing Gratuity liability on the basis of Actuarial Valuation at the end of each financial year. The Actuarial valuation is made on projected
unit credit method as per Ind AS 19. Jaiprakash Associates Limited (an associate company who is presently under CIRP) had constituted a Gratuity Fund Trust
under the name Jaiprakash Associates Limited Employees Gratuity Fund Trust (the Trust) for employees of JAL and its subsidiaries/associates and the Trust been
managed by SBI Life Insurance Co. Ltd. As Trust is responsible for the management and payment of Gratuity liability of different Companies as stated above
(including of JAL and the Company), hence the Company has advised/requested JAL and the Trust to share company wise fund availability, (w.r.t the Company’s
Gratuity liability) which is awaited. JAL is under CIRP as per the provisions of IBC, 2016 and in the absence of full funding details of Gratuity amount of the
employees of the Company and considering the prudence, during the financial year 2024-2025 the Company has provided an amount of Rs 481 lakhs additionally
to make equivalent to Gratuity Liability of the Company.
(c) Leave Encashment - Defined Benefit Plans - Provision has been made as per Actuarial Valuation certificate as per Ind AS.
(iii) Valuation techniques used to determine Fair value
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial
assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date.
Note 65 (2): FINANCIAL RISK MANAGEMENT
The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the
Company’s operations. The Company’s principal financial assets include trade and other receivables and cash and cash equivalents that are derived directly from its
operations
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and
liquidity risk. The company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
The Company's activities are exposed to market risk, credit risk and liquidity risk.
i Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three
types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risk include loans and borrowings, deposits and investments
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to
optimize the Company's position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive
corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .
(i) The exposure of Company's borrowings to interest rate changes at the end of reporting period are as follows:
(b) Foreign currency risk
The Company has no foreign currency trade payables and receivable outstanding as on 31st March, 2025 and is therefore, not exposed to foreign exchange risk.
(c) Commodity Risk
Commodity Price Risk of the Company will fluctuate on account of changes in market price of key raw materials. The Company is exposed to the movement in
price of key raw materials in domestic market The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used
in operations.
ii Credit risk:
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s credit risk arises
from accounts receivable balances on sale of electricity is based on tariff rate approved by electricity regulator. The credit risk is very low as the sale of electricity is
based on the terms of the PPA which has been approved by the Regulator. The concentration of credit risk is very limited due to the fact that the large customers are
mainly government entities.
In general the average credit period on sales of energy (PPAs) is 21 to 30 days
No interest is charged on trade receivables (PPAs) for the first 30 days from the date of the invoice. Thereafter, Company is having the option to charge interest at 15%
to 18% per annum on the outstanding balance, based on the terms of agreement/contract.
The Company is supplying majority of its generation State Utilities owned by State Government and the payment security mechanism in the form of Letter of Credit.
Balance generation is also being sold on Power exchanges and the state owned Traders with payment guarantee. The Company in general is not exposed to the credit
risk arising from the possibility that procurers fail to comply with contractual obligations.
There is no default in recovery of Trade receivables except the amount unpaid on account of dispute on the said amounts with beneficiaries. The
disputes are pending with respective regulatory authorities & Courts (mainly Regulatory Commission, Appellate Tribunal & Supreme Court of India).
Based on the matter decided by APTEL the provision is made for the non recovery of receivables after considering althogh the matter is contested before the higher
authorities / courts. The beneficiaries of the company for purchase of generation are mainly state owned entities and there is no concentration of credit risk.
(1) Credit risk management
Credit risk is being managed and accordance with the nature of transaction and the financial & / legal status of the Procurer/ beneficiary. Long term & short term
contract are being done with the state own Discoms which are backed by the State Government, Sound Financials and large consumer base for the procurement. The
short term contracts are being done mainly on Power exchanges, which operate under the regulations & have payment security mechanism. Company has defined
the criteria for the financial exposure to the beneficiaries. The credit risk is limited due to the fact that the customer base is not very large. A limited no of customers
which are state owned entities / being operated under regulations accounted for more than 95% of the receivables and revenue for the year ended March 31,2025 and
March 31, 2024. The Company’s credit policies to limit credit exposure is by having payment security mechanism according to applicable regulatory requirements. In
respect to generation business, Company generally has letter of credits /guarantees to limit its credit exposure.
2) Other credit enhancements
The Company collects the letter of credits /guarantees and give credit to state owned procurers, considering the relevant electricity regulations to cover credit risks
associated with trade receivables.
(3) Age of receivables and expected credit loss
The Company has used a methodology for computing the provisions of nor recoverable trade receivables. The provision is based on the decision of particular
authorities against the company for the receivables under dispute. Trade receivable balances mainly comprise of outstanding from beneficiaries and the policy of the
Company is to make provisions for credit loss takes into consideration of factors that the dispute is decided against us by a respective authority
For the age of trade receivables , refer note no. 13
iii Liquidity Risk
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The Company’s objective is to at all
times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company's management is responsible for liquidity, funding as well as
settlement. In addition, processes the policies related to such risks. Senior management monitors the company's net liquidity position through rolling, forecast on the
basis of expected cash flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments:
(a) Company has provided MAT tax liability during the year ended 31st March, 2025 of Rs.12,518 Lakhs according to prevailing income tax act provision.
(b) In the opinion of management, assets stated in the financial statements have a realizable value (at which these are stated), in the ordinary course of business at least
equal to the amount at which they are stated.
Note 67
M/s Tecpro Systems Ltd. (Tecpro), was awarded the contracts for supply, erection, testing, commissioning and performance of the coal and ash handling system, (ACFA
system), coal crusher system by Bina Power Supply Company Ltd. which had been merged with JPVL(Company) in earlier year for its 500 MW Thermal Power Plant located
at Bina Distt. Sagar, M.P However, Tecpro did not complete the entire work as per the terms & conditions of contracts, and the Company got completed the balance work
itself, by procuring the balance materials from other suppliers and made the systems operational. An amount of Rs. 535.40 lakhs was recoverable on account of mobilization
advance paid to Tecpro. As Tecpro had left the work incomplete, hence the company had in earlier year encashed the Bank Guarantee provided by Techpro of amounting
to Rs. 2,013.20 Lakhs on account of dispute and loss incurred by the company for not completing the work as per work order awarded causing delay in the project. The
Company had to incur an expenditure of Rs.6,093 lakhs towards procurement of remaining plant and machinery for completing the plant. The Company had claimed liquidated
damages of Rs.2,235 Lakhs and amount of Rs.6,093 Lakhs which it had incurred on additional cost, expenditure on procurement of various materials to complete the Plant.
Creditors of Tecpro has referred Tecpro to NCLT and IRP/RP had rejected the claim of the Company. During the earlier year, the company had received a legal notice from
Offical Liquidator (OL) of M/s Techpro demanding refund of encashed bank guarantee along with interest, Company had replied the same and had declined the claim made
by OL for the reasons stated above.
Note 68- Other Information in terms of the amendment in Schedule-III of the Companies Act,2013 by Ministry of Corporate Affairs (MCA) vide notification G.S.R. 207
(E) dated 24th March,2021:
(i) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company for holding any benami property.
(ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that
the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing
or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,1961.
(vi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers)
Rules, 2017.
(a) As per IND 108 Operating Segment, segment information has been provided on consolidated financial statement basis.
(b) The company has a widely used ERP as its accounting software for maintaining its books of account during the year ended 31st March,2025, which has feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all transaction recorded in the software except (a) the audit trail feature was not
enabled throughout the year for the relevant table at application level. There is no mapping performed to ensure completeness of audit trail on all applicable tables at
application level; and (b) for privileged access to specific users to make direct changes to audit trail setting. There is no instance of audit trail feature being tampered
with in respect of the accounting software. Further, the audit trail, to the extent maintained in the prior year, has been preserved by the Company as per the statutory
requirements for record retention.
Note 71
Previous Year’s figures have been regrouped/ re-arranged, wherever considered necessary to make them conform to the figures for the current year.
For and on behalf of Board of Directors
FOR LODHA & CO. LLP Manoj Gaur
CHARTERED ACCOUNTANTS Chairman
Firm Registration No. 301051E/E300284 DIN 00008480
(N. K. Lodha) Suren Jain
Partner Managing Director & CEO
M.No. 085155 DIN 00011026
Place: New Delhi R.K. Porwal Mahesh Chaturvedi
Date: 1st May, 2025 President (F&A) & CFO G.M. & Company Secretary M.No. FCS 3188
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