i. A contingent liability is a possible obligation thatarises from past events whose existence will beconfirmed by the occurrence or non-occurrenceof one or more uncertain future events beyond thecontrol of the Company or a present obligation thatis not recognized because it is not probable thatan outflow of resources will be required to settlethe obligation. A contingent liability also arisesin extremely rare cases where there is a liabilitythat cannot be recognized because it cannot bemeasured reliably. The Company does not recognizea contingent liability but discloses its existence in thefinancial statements.
Contingent liabilities, if material, are disclosed by wayof notes and contingent assets, if any, is disclosed inthe notes to financial statements.
ii. A provision is recognized, when Company has apresent obligation (legal or constructive) as a resultof past events and it is probable that an outflow ofresources embodying economic benefits will berequired to settle the obligation, in respect of whicha reliable estimate can be made for the amount ofobligation. The expense relating to the provision
is presented in the profit and loss net of anyreimbursement.
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 risksspecific to the liability. When discounting is used, theincrease in the provision due to the passage of timeis recognised as a finance cost.
iii. A contingent asset is not recognized but disclosed inthe financial statements when an inflow of economicbenefits is probable.
Basic earnings per share is computed using the netprofit for the year attributable to the shareholders' andweighted average number of shares outstanding duringthe year. The weighted average numbers of shares alsoincludes fixed number of equity shares that are issuableon conversion of compulsorily convertible preferenceshares, debentures or any other instrument, from the dateconsideration is receivable (generally the date of theirissue) of such instruments.
Diluted earnings per share is computed using the netprofit for the year attributable to the shareholder' andweighted average number of equity and potential equityshares outstanding during the year including shareoptions, convertible preference shares and debentures,except where the result would be anti-dilutive. Potentialequity shares that are converted during the year areincluded in the calculation of diluted earnings per share,from the beginning of the year or date of issuance of suchpotential equity shares, to the date of conversion.
u) Segment Reporting
Revenue, operating results, assets and liabilities havebeen identified to represent separate segments on thebasis of their relationship to the operating activities of thesegment. Assets, liabilities, revenue and expenses whichare not allocable to separate segment on a reasonablebasis, are included under “Unallocated/others”.
Cash flows are reported using the indirect method,whereby net profit / (loss) before tax is adjusted for theeffects of transactions of a non-cash nature and anydeferrals or accruals of past or future cash receipts orpayments. The cash flows from operating, investing andfinancing activities of the Company are segregated
w) Operating cycle
Based on the nature of products / activities of theCompany and the normal time between acquisition ofassets and their realisation in cash or cash equivalents,the Company has determined its operating cycle as 12months for the purpose of classification of its assets andliabilities 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 ofcapital
(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 andentitlement 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 Companyafter 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 upwhich 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 repaymentof 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 parin 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) Onaccount 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 upwhich 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 repaymentof 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 ofthe Bilateral Agreement dated 18th April, 2019 (between Company and Canara Bank ) subject to the provisions of the Companies act, 2013 and any other applicablelaw 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 lossesno 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 windingup 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 dividendor 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 beConverted into such number of Equity Shares as may be determined at the time of conversion as per prevailing provision of Companies Act/SEBI/RBI Rulesand 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 after20 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 SDRscheme in earlier years) aggregating to Rs.40,863 Lakhs (PreviousYear-Rs. 48,398 Lakhs) outstanding out of sanctioned amount ofRs. 2,15,000 Lakhs, from Banks, together with all interest, guaranteecommission, cost, expenses and other charges are secured rankingpari passu among all the participating Banks viz. State Bank of India[Including loan assigned by Bank of India and Andhra Bank (merged withUnion Bank) during the earlier year], Oriental Bank of Commerce (mergedwith 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 bookdebts, operating cash flows, receivables, commissions, revenue ofwhatsoever nature ; and
(ii) First charge on 400 MW Vishnuprayag HEP’s all the bank accountsincluding the Trust & Retention Account, Escrow Account of Uttar
Pradesh Power Corporation Limited and Debt Service Reserve Accountand each of the other accounts required to be created by the Companyunder any 400 MW Vishnuprayag HEP financing document or anycontract.
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 ProjectAgreements and Escrow Agreement, all present and future rights, titles,interests, benefits, claims and demands whatsoever with respect to theInsurance Policies, claims and benefits to all monies receivable thereunder and all other claims there under in respect of all the insured assetsof the Plant ;
(iv) First ranking equitable mortgage on all rights, titles, interests andbenefits in respect of immovable properties and assets of the 400 MWVishnuprayag HEP ;
(v) Pledge of 6,291 Lakhs (Previous Year - 6,291 Lakhs) equity shares of theCompany held by Jaiprakash Associates Ltd. (JAL) the party to whomthe company is associate, on pari-passu basis with lenders of NigrieSuper 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 yearRs..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 Equityunder SDR scheme in earlier years) of Rs.81,568 Lakhs (PreviousYear Rs.95,965 Lakhs) outstanding out of sanctioned amount of Rs.2,25,800 Lakhs (original Rs.1,92,800 Lakhs and additional Rs.33,000Lakhs) 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), CanaraBank, Central Bank of India, State Bank of India, IDBI Bank Ltd., ICICIBank Ltd. and The Jammu and Kashmir Bank Ltd., are secured by ;
(i) First ranking pari-passu mortgage and hypothecation of all immovableand movables assets both present and future, all intangible assets, andall revenues and receivables pertaining to Jaypee Bina Thermal PowerPlant and
(ii) First ranking pari-passu charge on, assignment of Project Agreements,Trust & Retention account. Debt & Service Reserve Account and EscrowAgreement, all present and future rights, titles, interests, benefits, claimsand demands whatsoever with respect to the Insurance Contracts/ lossproceeds, claims and benefits to all monies receivable there under and allother claims there under in respect of all the insured assets of the Plant ;
(iii) Pledge of 648 Lakhs equity shares (Previous Year 648 Lakhs equityshares) of the Company held by JAL, the party to whom the company isassociate , on pari passu basis among the lenders of JBTPP.
21.2(b) Rupee term loan outstanding Rs.81,568 Lakhs (Previous year Rs.95,965Lakhs) are repayable in 30 structured quarterly installments, as detailedas % 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 BankLtd.) having outstanding balance (fund based) of Rs. 14,841 Lakhs(Previous Year - Rs. 14,383 Lakhs). Bank Guarantees/ LCs outstandingof Rs.2,039 Lakhs (Previous Year - Rs.1,964 Lakhs) (margin money ofRs. 1,044 Lakhs against Bank Guarantees/ LCs outstanding) (previousyear 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 underSDR scheme and conversion of part of Debt into CCPS & CRPS underrestructuring as per Framework Agreement in earlier years) outstandingof Rs.1,46,843 Lakhs (Previous Year 1,65,168 Lakhs) out of sanctionedamount of Rs. 7,31,500 Lakhs and out of short term financial assistancesanctioned amount of Rs, 4,600 Lakhs from consortium Banks and ofFinancial Institutions, together with all interest, guarantee commission,cost, expenses and other charges are secured ranking pari-passuamong all the participating Banks and financial Institutions viz. PunjabNational Bank (PNB), Canara Bank, Central Bank of India, Oriental Bankof Commerce (merged with PNB), Bank of Baroda, Bank of Maharashtra,Indian Overseas Bank, Syndicate Bank (merged with Canara Bank), UCOBank, 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 ofIndia, are secured by way of :
(i) First ranking pari-passu mortgage and hypothecation of all immovableand movables assets both present and future, all intangible assets,and all revenues and receivables pertaining to the Jaypee Nigrie SuperThermal 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 InsuranceContracts, claims and benefits to all monies receivable there under and allother 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 equityshares) of the Company held by JAL, the party to whom the company isassociate, on pari-passu basis with lenders of Jaypee Vishnuprayag HEP and
(iv) Letter of Comfort from Jaiprakash Associates Limited, the party towhom the company is associate, for the additional loan of Rs.1,64,500Lakhs (Previous Year- Rs.1,64,500 Lakhs) Outstanding Rs. 98,705Lakhs (Previous Year Outstanding Rs.98,705 Lakhs) {pre-restructuringbalance merged with loan mentioned above in note no. 21.3(a)} inaddition to above securities.
(v) There is a vacant land parcel admeasuring 64.741 Ha. which wasacquired for the purpose of submergence as and when barrage levelwent up at Nigrie TPP on which security was to be created in favour ofLenders. However the same could not be created, as NOC from Govt. ofMadhya Pradesh (GoMP) is yet to be received. In order to give requisitecomfort to the lenders, a valuation exercise was conducted and as pervaluation 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, JPVLhas provided cash collateral of INR 453 Lakhs(previous year Rs. 453Lakhs) in the form of FD and ICICI Bank has kept lien mark over the saidFD. Further JPVL has also executed undertaking for negative lien on saidparcel of land and given undertaking that the same will not be disposed-off without approval of the lenders.
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, PunjabNational bank and IDBI Bank Ltd. are secured by pari-passu chargeon the assets as per note no. 21.3 (a)(i)(ii) and note no. 21.5(a)(i) andoutstanding 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.1,340Lakhs) (Previous Year-Rs.6,246 Lakhs (margin money paid against aboveBank 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. 3,405Lakhs ) are repayable in in 36 structured quarterly installments, asdetailed 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.
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.3,089Lakhs (Previous Year - Rs. 3,437 Lakhs) availed from consortiumof Banks viz Bank of Baroda, ICICI Bank Limited, Oriental Bank ofCommerce (merged with PNB) and State Bank of India, out of sanctionedamount 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
(i) First charge on the assets of Amelia (North) Coal Mine ranking paripassu with the term and working capital Lenders of Jaypee Nigrie SuperThermal Power Plant as per Note 21.3 (c) above (except assets whichwere specifically financed under equipment finance facility by SREIEquipment Finance Company Ltd., which shall be excluded from securitypackage for lenders) on reciprocal basis.
21.5(b) Rupee term loan outstanding Rs. 3,089 Lakhs (Previous year Rs. 3,437Lakhs ) are repayable in in 38 structured quarterly installments, asdetailed 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 StateBank of India, is secured by way of residual charge on all movable andimmovable assets of the Company on pari-passu basis with, CorporateLoan of Rs.1,20,000 Lakhs & Rs. 15,000 Lakhs by ICICI bank & IDBIBank respectively and also secured by way of pledge of 1,500 Lakhsequity shares of the Company held by JPVL Trust (Previous Year-1,500Lakhs 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 earlieryears) outstanding out of sanctioned amount of Rs. 1,20,000 Lakhsby ICICI Bank, is secured by way of residual charge on all movable andimmovable assets of the Company on pari-passu basis with CorporateLoan of Rs.1,00,000 Lakhs by State Bank of india, Corporate Loan ofRs.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 ofthe Company held by JPVL Trust (Previous Year-192.11 Lakhs) and NonDisposal Undertaking for 1,021.89 Lakhs equity shares of the Companyheld 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 ofthe Company on pari-passu basis with Corporate Loan of Rs.1,00,000Lakhs by State Bank of india, Corporate Loan of Rs.1,20,000 Lakhs byICICI 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 of1,206 Lakhs shares( Previous Year 1206 Lakhs shares) of the companyheld by JAL, the party to whom the company is associate and personalguarantee of Shri Manoj Gaur, Chairman of the Company.
(iv) Corporate loan - Rupee Term Loan outstanding of Rs.57,550 Lakhs(Previous year Rs. 64,518 Lakhs) is repayable in 38 structured quarterlyinstallments, as detailed as % age of principal outstanding as on 31stMarch, 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 % fromFY 2031 to 2035.
21.6(b) The outstanding loans balances are excluding Ind AS adjustment ofRs.1,036 Lakhs (previous year Rs. 1,223 Lakhs).
21.7 All above term loans/debts and working capital facilities mentioned innote no. 21.1,21.2, 21.3, 21.4,21.5 & 21.6 are also additionaly securedby 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 beenadversely impacted by the overall stress in the power sector and also dueto specific challenges faced by the Company in the previous year(s) inits Thermal Power Plants, viz. Nigrie Super Thermal Power Plant (NigrieSTPP) and Bina Thermal Power Plant (Bina TPP), prominent of whichare de-allocation of coal mines by the Hon’ble Supreme Court of Indiain September 2014, delay in new PPAs in Nigrie STPP abnormally lowmerchant tariffs and insufficient availability of coal, lower PLF in BinaTPP due to dispatch schedule of very low off take by State loan DispatchCentre (SLDC), which is technically not feasible to run the plant optimallyand forcing Company to sell balance power on power exchanges atmarket driven tariff resulting unremunerative prices and insufficientavailability of coal etc. These factors have put significant strain on theCompany’s ability to service the dues of lenders.
(ii) Lenders had invoked SDR during financial year 2016-17 as per RBIguidelines for stressed assets. Consequent to that the Company hadallotted 30,580 lakhs equity shares at Rs.3,05,800 lakhs on 18.02.2017to Banks and Financial Institutions upon conversion of part of theiroutstanding loans/ interest. The lenders shareholding stood at 51% ason 18.02.2017, which stands reduced to 17.09 % as on 31.03.2025of paid up capital of the Company. The lenders who are holding equityshare capital of the Company, had to offload the shareholding as perRBI guidelines. The lenders had invited bids for divestment of part oftheir equity in the Company in earlier year. Since the response was notsatisfactory, lenders closed the process.
(iii) The Company had signed a ‘Framework Agreement’ (the Agreement)dated 18th April 2019 with the Banks and Financial Institutions forrestructuring of the outstanding Loans (in respect of its units JNSTPPJBTPP VHEP JNCGU including Corporate Loans) & interest accruedthereon as of 31st July 2018 with the revised terms & conditions.In terms of ‘the Agreement’ and as agreed upon, the Company hadallotted (i) Fully paid 0.01% Cumulative Compulsory ConvertiblePreference Shares (CCPS) for an aggregate amount of Rs.3,80,553 lakhson 23.12.2019 and (ii) Fully paid up 9.50% Cumulative RedeemablePreference Shares (CRPS) for aggregate amount of Rs.3,452 lakhs(CRPS of Rs.1,202 lakhs and Rs.2,250 lakhs allotted on 16.12.2019and 23.12.2019 respectively), to its lenders on private placement basis.In view of the above ‘Framework Agreement’ and post filing of withdrawalpursis by ICICI bank before the Ahmedabad Branch of National CompanyLaw Tribunal (the NCLT), the NCLT had allowed ICICI bank to withdraw itsInsolvency and bankruptcy petition (earlier filed u/s 7) vide Order dated10th January 2020. On the signing of ‘the Agreement’, Corporation Bank,which had initiated recovery proceedings against the Company in DebtsRecovery Tribunal-III (DRT), New Delhi, had filed an application for thewithdrawal of original application, which had been allowed by DRTIII, NewDelhi in the hearing held on 03 rd February, 2020. In view of implementationof Debt Resolution Plan as stated above, some of the lenders whohad earlier initiated action under the SARFAESI Act, were withdrawnall 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 FrameworkAgreement 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, theLenders shall have the right to receive recompense for the sacrificesmade by them in accordance with the IRAC Norms. Provided thatthe maximum amount of recompense should be limited to the sumof waivers provided by the Lenders and the present value of futureeconomic loss on account of reduction in interest rate and/or onaccount of any changes to the repayment schedule. Presently asassessed by the management, no recompense is payable to lenders.
21.9 Unsecured Loans
(i) Unsecured loan outstanding of Rs.1,000 Lakhs (interest free)(PreviousYear Rs.1,000 Lakhs) is repayable to Government of Uttarakhand/ UttarPradesh against sanctioned amount of Rs. 2,500 Lakhs, which would bepaid after having decision arrived between Government of Uttar Pradeshand Government of Uttarakhand for receipt of said payment.
21.10 Impact of the above stated Agreement’ (the Agreement as stated in noteno. 21.8(iii)) had been given in earlier year to the extent information/confirmation received from the lenders. Further, balances of certainlenders, banks and other liabilities are subject to confirmation/reconciliations. In the opinion of the management, there will not be anymaterial 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 17.04.2024thereafter at 10.00% p.a.
(ii) Bina TPP Loans (including working capital facility): Interest rate at9.50% till 17.04.2024 thereafter at 10.00% p.a.
(iii) Nigrie STPP Loans (including working capital facility): Interest rate at9.50% till 17.04.2024 thereafter at 10.00% p.a.
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 30.12.2024issued by MoEF&CC for the extension of timeline for installation of FGD from31.12.2026 to 31.12.2029. JPVL had issued Letters of Suspension of theContracts/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 vendorsare under progress/on-going to work-out the methodology for the installation of FGDwith deferred Schedule. Company have also filed the petition for seeking appropriatedirections regarding timeline for installation of FGD System from Madhya PradeshElectricity Regulatory Commission on Feb. 26, 2025 for Bina and Feb. 24, 2025for Nigrie. Further course of actions would be taken based on outcome of variousdiscussion with vendors and directions/results of the petition.
(a) Jaypee Arunachal Power Limited (JAPL), the wholly-owned subsidiarycompany of JPVL was in the process of setting up 9x300 = 2700 MWLower Siang H.E. Project and 4x125=500 MW Hirong HE Project in theState of Arunachal Pradesh and the Company has equity investment ofRs. 22,872 lakhs (project was initiated in the year 2008-09 and materialamount of investment in the subsidiary company was made prior to2012-13). There was considerable delay in the obtaining differentapprovals etc. and also to get final DPR, the Government of India hadproposed that this project to be implemented by central PSUs in the FY21-22. While one of the PSU had been engaged with the company fortakeover of the project and even appointed agency for carrying out duediligence in FY 2022-23, subsequent to the Government of ArunachalPradesh’s review meetings (were held in the month of November’23 andJanuary’24) on the status of the project, it was communicated to theJAPL 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 andthe possibility of the above referred projects coming into effect has
diminished and also JAPL has written off expenses incurred on theproject of Rs.22,299 lakhs, therefore, during year ended 31st March,2024, based on the report of an expert and as assessed by themanagement, the Company has provided for Rs 22,871 lakhs against itsequity investment in the JAPL and charged off to standalone statementof 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 nominalvalue of Rs 1 Lakhs
(b) In the earlier year, State Government of Meghalaya had advised thatthe 270 MW Umngot HEP will not be operationalised till further Ordersand during the financial year 2020-21 State Government of Meghalayahad forfeited the up front fees paid amounting to Rs. 135 Lakhs inpursuance of the termination of Agreement for 270 MW Umngot HEP.Accordingly,Company had provided for amounting to Rs. 135 Lakhs asdiminution in value against investment of Rs. 846 Lakhs in FY 2020¬21. During the year 2022-23, Company had made further provision fordiminution in value of investment in Jaypee Meghalaya Power Limited(Subsidiary Company) amounting to Rs. 711 Lakhs.
(c) Sangam Power Generation Company Limited (SPGCL, a SubsidiaryCompany) was acquired by JPVL (the Company) from Uttar PradeshPower Corporation Ltd (UPPCL) for implementation of 1320 MW PowerProject (Karchana STPP) in Uttar Pradesh in which the Company hasinvestment of Rs. 55,212 lakhs (31st March, 2024 Rs.55,212 lakhs). Inthe books of SPGCL, amount aggregating to Rs.16,055 lakhs (excludingvalue of land parcel) is shown as expenditure incurred during theconstruction and incidental to setting up of the project, capital advancesetc. and same been carried over since long and the Net Worth ofSPGCL has been eroded significantly as on 31st March, 2025. In viewof abnormal delay in handing over the physical possession of parcelof land by UPPCL, SPGCL had written to UPPCL and to all procurersof power that the Power Purchase Agreement (PPA) be rendered voidand cannot be enforced. As advised, SPGCL had sent draft SharePurchase Agreement (SPA) to UPPCL / UPRVUNL for their approval butthere was abnormal delay in resolving the matter by UPPCL, thereforeSPGCL had withdrawn all its undertakings given to UPPCL and alsofiled a petition before Hon’ble UPERC (State Commission) for releaseof performance bank guarantee (PBG of Rs. 99 crores) and also forpayment against claim lodged of Rs 1,15,722 lakhs. UPERC vide itsOrder dated 28.06.2019 had allowed claim (of SPGCL) for Rs.25,137Lakhs along with interest @ 9% p.a. on Rs.14,925 lakhs for theperiod from 11.04.2014 to 31.03.2019 and also directed UPPCL toimmediately release PBG to SPGCL and SPGCL to transfer the entire landparcel to UPPCL. Against the above order, UPPCL appealed in APTELand SPGCL had also filed counter appeal. APTEL vide its order dated14th July, 2021, upheld the State Commissions Order dated 28.06.2019and directed State Commission to complete the verification of relevantdocuments of the claim filed by SPGCL within a period of three monthsfrom the date of pronouncement of the judgment and to crystallize thetotal amount to be paid to SPGCL. SPGCL had filed an application withHon’ble UPERC for verification of expenditure and payment thereof andfor release of PBG. Meanwhile, UPPCL has filed an appeal with Hon’bleSupreme Court against above mentioned order of APTEL and Companyhas also filed an appeal with Hon’ble Supreme Court against the order ofAPTEL. Hon’ble Supreme Court has stayed the Order of APTEL. Furtherpursuant to the Order of Hon’ble Supreme Court dated 14th December2021, application filed with Hon’ble UPERC by the Company-SPGCL, asstated 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 statedabove regarding settlement of claims (claims and counter claims),the management after taking into consideration the present state ofaffairs and based on the report of an expert, during the previous yearended 31st March,2024 has considered it necessary and provided forRs.33,025 lakhs against above stated investment and charged off in the
standalone statement of profit and loss, and same is shown as part ofexceptional item in FY 2023-24.
Note 47
In respect of investigation conducted by the SEBI, the Company and its fourDirectors, 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 andimposing penalties), Rules, 1995 on issues related with non-compliancesof certain accounting standards/ Ind AS etc. during period from financialyears 2012-13 to 2021-22, SEBIVide its Order dated 27th December 2024has imposed a penalty of Rs. 14 lakhs on the Company (excluding penalty ofRs.40 lakhs imposed on MD & CEO, CFO and four directors).The managementbelieves that there was no non-compliances in past as full disclosers weremade for the basis of then decision taken,and will be no material impacts ofthis 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 recoverysubject to deposit of 50% of penalty imposed by SEBI. The 50% penalty wasdeposited in time by all the notices.
Note 48 Entry Tax
(i) The Company has not made provision against Entry Tax in respect ofNigrie STPP (including Nigrie Cement Grinding Unit) of amounting toRs.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 extensionof the time for eligibility of exemption from payment of Entry Tax ispending from concerned authority, for which the company has maderepresentations before the concerned authority and management isconfident for favourable outcome. Against the above entry tax demand,till date Rs.6,685 Lakhs (Previous year Rs. 6,685 Lakhs) has beendeposited (and shown as part of other non-current assets) which is inthe opinion of the management good and recoverable.
(ii) In respect Bina TPP Company has received letter dated 20.03.2020of Entry Tax Exemption from Madhya Pradesh Industrial DevelopmentCorporation Limited (Govt of Madhya Pradesh Undertaking) for theperiod commencing from 02.04.2012 and ending on 30.06.2017 forUNIT-1 and 12.03.2013 and ending on 30.06.2017 for UNIT-2. TheCompany had filed necessary application/appeals with appropriateauthority for getting quashed all demands raised by commercial taxdepartment and Hon'ble High Court of Madhya Pradesh vide itsOrders dated 26th April 2023 have directed the competent authorityunder the Revenue to reassess the demand raised by it with regardto 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 ofthe competent authority(s) quashing the entry tax demands raised inearlier years of Rs. 12,206 lakhs for FY 2012-13 to 2016-17 consideringentry tax exemption certificates and has allowed for refund of amountdeposited of Rs. 2078 lakhs (previous year Rs. 2078 lakhs). BasisOrders of the competent authority(s), Company has filed letter with JointCommissioner , State GST Department, Sagar, Madhya Pradesh forgiving effect of the above stated Orders which is pending and in opinionof 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 thedemand and an appeal had been filed before The Hon’ble High Court ofUttarakhand at Nainital which had granted stay in January, 2017. Subsequentlyin February'2021, in case of water cess, Hon'ble High Court of Uttarakhand atNainital passed a common Order against the Company through a commonjudgement for all petitioners against which a special appeal had been filed inMarch,2021 before division bench headed by Hon'ble Chief Justice of Hon'bleHigh Court of Uttarakhand at Nainital and stay has been granted against the
Order passed in February,2021 for Water cess. Currently matters are pendingin the Hon’ble High Court of Uttarakhand at Nainital. However High Court videits order dated 12.07.2022, in respect of the appellants / writ petitioner whohad established by filing their affidavits, that they have not, in fact, collectedwater tax, and not passed on the said liability to their customers, there shall bestay of recovery of water tax till 31st of July, 2022 but they shall commencepaying the water tax dues levied under the impugned legislation from 1st ofAugust 2022, onwards subject to final orders. As per direction, the Companyisis paying water tax from August 2022. The Management is confident that nodemand will be crystallized due to the amended implementation agreementdated 22nd March, 2003 in which it has mentioned that Vishnuprayag HEPbeing a run of the river scheme, shall utilize the flowing water of the river togenerate electricity. Such right to utilize water available upstream of the projectare granted by Government of Uttaranchal for non-consumptive use withoutcharging any royalty, duty, cess or levy of any kind.Also, Ministry of Powervide its notification dated 25.04.23 has advised that all state that not to levytaxes/duties by any state under guise on generation of electricity and if anytaxes/duties have been levied , It may be promptly withdrawn.
UPERC vide its Order dated 13.03.2024 has directed UPPCL to reimbursecompany the water tax paid by company to Government of Uttarakhand foroperations of plant, till any decision on the matter by High Court Uttarakhand.Accordingly, water tax paid by the Company is being claimed & recoveredfrom UPPCL.
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 extentavailable 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 advanceamounting to Rs. 3,434 lakhs (net)((balance as per books as on 31st March2025) was paid to JAL.As stated in note no 44(e), the RP of JAL had madepublic announcement for inviting claims of operational creditors and financialcreditors, and the Company has also filed claims its for Rs.128,756 lakhs (net)with the IRP [including claim against corporate guarantee provided as statedin note no 44(e)] as of 3rd June 2024. Presently, the company is awaitingfurther updates in the matter. Considering above stated facts and status, theCompany has considered, not necessary to make provisions against theoutstanding advance amount of Rs.3,434 lakhs (net)and same is consideredfully recoverable.
Note 52
In respect of JBTPP billings amounting to Rs. 17,706 lakhs {till 31st March2024 Rs. 17,706 lakhs including claims on account of non-scheduling ofpower (RSD) of Rs.10,459 lakhs} raised on MPPMCL (Madhya PradeshPower Management Company Limited) for capacity charges for five (5)months of year 2020 has been disputed by MPPMCL as notice of invokingforce majeure clause had been served and/or non-scheduling of powerby MPPMCL. In the Opinion of the Management, considering the prevailingMadhya Pradesh Electricity Grid Code (revision -ii), 2019 (MPEGC, 2019)and based on opinion of an expert (legal opinion taken by the Association ofPrivate Electricity Generating Stations of MP), the MPPMCL is liable to makepayment of capacity charges for declared availability of Contracted Capacityunder PPA and for which invoices had been raised in terms of PPA signedbetween company and MPPMCL (also invoice of delayed payment surchargeof Rs. 3,795 lakhs raised for the period till Oct’2021, in addition to above statedamount). In earlier year, the Company had filed an appeal with APTEL againstthe Order of MPERC for not allowing the petition filed by the Company forrecovery of unpaid capacity charges on account of non-scheduling of power(RSD) by MPPMCL and also MPPMCL had filed an appeal with APTEL againstthe Order of MPERC allowing recovery of unscheduled capacity charges(force majure) in favour of the Company. During the FY 23-24, the APTEL hadgranted stay on the Order of MPERC on the appeal of MPPMCL in the matterof Force Majeure issue on payment by MPPMCL to the Company of 80% ofamount payable (Rs.6,249 lakhs), which had been then paid by MPPMCL tothe Company in FY 23-24. During the current year, the Hon’ble APTEL hasordered MPPMCL for the release of amount related with non-scheduling ofpower (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 (includingdelayed payment surcharge of Rs.9110 lakhs till October 2024) against whichMPPCL has paid Rs. 15,298 lakhs till 31st March 2025. Considering abovestated facts, stated above, balance amount of Rs.11,027 lakhs (includingbalance amount related to Force Majure and delayed payment surchargethereon),which is overdue for payment, is good and fully recoverable, in theopinion 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 (previousyear gain of Rs. 33,376 lakhs) has been charged to statement of profitand 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 ofAndhra Pradesh (AP) in terms of and as per the main contract(s) (threenos.) 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 beoperated in terms of the contracts with DMG).Further as required under
the contract terms, Performance Bank Guarantees of Rs. 12,000 lakhswas provided by the sub-contractor to the DMG.The contract period ofsaid contract(s) were over in May 2023, and the Company was allowedby 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 theAssets handed over by them, advance outstanding of Andhra PradeshState Housing Corporation Limited (APSHCL) and balance dues of DMGthen had been adjusted there against as per letters / statements of DMG.Basis ‘No due certificate’ of DMG and as per the statement received fromDMG, no amount is /were remaining to be payable by the Company toDMG.
(b)(i Subsequently, during the current financial year, the Company hasreceived show cause notices /demand notices (‘notices’) aggregate ofamounting to Rs.1,79,083 lakhs (including amount estimated based onshow cause notices of Rs.10,468 lakhs) from various district office(s)of DM Galleging illegal extraction, storing, transportation and selling ofsand and the Company has suitably replied. The Company has disputedthe notices, as notices which DMG has issued, basis inspection/surveycarried out by the offices of DMG after gap of considerable period whenabove all contracts of the Company with DMG were got expired andalso another agency had been engaged to carrying out sand miningoperations for period more than six months, by DMG and in this regardsummons-notices has been issued by the GST Authority. For above, DMGhas filed FIRs against the Company and its officials. The managementbelieves that liability in this regard has duly been discharged by thesub-contractor (party who was carrying out the sand mining activities)as DMG has provided ‘No due certificate’ and also DMG had releasedthe Bank Guarantees provided by the sub-contractor to the DMG forthe above stated contracts. The Hon’ble High Court of AP has grantedinterim stay in respect of notices to the extent of Rs. 1,68,615 lakhsand for balance amount (estimated) based on show cause notices,the Company has filed its replies to the concerned officials (DMG).TheCompany has been legally advised that the Company has creditable casein its favour considering the above stated facts that all the contractswere Sub-contracted on back-to-back basis and Sub-contractor was/is responsible/liable under the Contracts terms, other facts stated aboveand in the opinion of management, it is not necessary to make anyprovision in this regard and there is/will be no impact on profit as well ason the state of affairs of the Company.
(b)(ii) As stated above all contracts were sub-contracted on back-to-backbasis and in earlier year/period, purchases, sale and inventory wereaccounted for based on details/statement as made available by the sub-contractor/ DMG. Balance in the account of sub-contractor is pendingfor the confirmation and reconciliation as on 31st March, 2025. In theopinion of management, there will be no material impact on the financialstatements for the year ended 31st March 2025 and state of affairs of theCompany on final reconciliation/confirmation. The management believesthat action initiated by the DMG as stated in para (a) above will have noimpact as contract was sub-contracted on back to back basis and DMGwas 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 PowerPlant) (including Land, Building, Plant & Machinery capitalized or under CWIP)being excess as compared to the carrying value, as estimated by a technicalvaluer, management does not anticipate any impairment amount which is to beprovided at this stage in the financial statement in the value of property, plantand equipment (including capital work-in-progress) based on the condition ofplant, market demand and supply, economic and regulatory environment andother factors.
2.0 MTPA cement grinding unit of the Company namely Jaypee Nigrie CementGrinding Unit (JNCGU) which commenced commercial operation in June,2015. However, there was negligible/substantially low production during thepast over 2 years.
Fair value of JNCGU being excess as compared to the carrying value ofRs. 18,644 Lakhs (previous year Rs. 19,467 Lakhs) as assessed by themanagement considering the report of valuer after taking and/or into expectedfuture cash flows, Also management is of the view that no impairment provisionin the carrying amount of property, plant & equipment (including capital work inprogress) is necessary at this stage considering above stated reason.
(a) Exceptional items include for the year ended 31st March, 2025 Rs. NILand for the year ended 31st March, 2024: (A) Amount provided forRs. 55,896 lakhs against investment made in subsidiary companies{note no. 46(a) and 46 (c) above}; (B) Escalation amount of additionalbid premium related to Amelia Coal mine 23,809 lakhs (note no. 57(b)below).
(b) As per Coal Mine Development and Production Agreement (CMDPA) inrespect of Amelia (North) Coal mine signed with Government of India(GOI) - the fixed rate and additional premium payable on coal quantityextracted was to be subject to escalation on yearly basis based onescalation formula for Design, Build, Finance Own and Operate (DBFOO)to be finalised by GoI. The Nominated Authority, Ministry of Coal, GOIvide its letter dated 25th October, 2023 finalised the escalation pricefor 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 stategovernment in equal four quarterly instalments. During the F.Y 2023-24, the Company had made provision Rs. 23,809 Lakhs and charged thesame to statement of profit and loss (shown as part of exceptional itemin previous year 2023-24) and the same has paid as per directions of theGovernment.
(a) During the FY 2022-23, Company had been declared successful bidderby Nominated Authority, Ministry of Coal, Government of India for BandhaNorth Coal Block located in Madhya Pradesh state. The Company is inthe process of complying with necessary/ applicable conditions of CoalBlock Development and Production Agreement/allocation order/tenderdocuments. Initial outlays, as estimated by the management, for coalblock 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 inthis regard). Till March 31,2025 Rs. 6,627 lakhs(Till March 31,2024 Rs4,532 Lakhs (inclusive of fixed amount deposited of Rs.3,868 lakhs )expenses has been incurred with regard to Bandha Coal Mine and thesame is shown as part of intangible assets under development.
(b) On account of outbreak of Coronavirus (Covid-19), during the periodfrom March,2020 to 31st March,2021 there was lockdown/frequent-partial across the country/part of the country for a significant periodand there were disruption in business activities and the Company hadcontinued to generate and supply electricity to its customers, which wasdeclared as an essential service by the Government of India. Howeverthe Company had received notice, in earlier year for invoking forcemajeure clause provided in the power purchase agreement (PPA) fromM.P Power Management Company Limited (MPPMCL) and UPPCL inrespect of units JNSTPP & JBTPP and VHEP respectively and also fromPTC with whom Company has short term PPA, which had been suitablyreplied by the Company /clarified that the said situation is not coveredunder force majeure clause, considering generation and distribution ofelectricity 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 thecontract to comply with the obligation to pay fixed capacity charges asper PPA to the Power Producers.
(a) Pending confirmations/reconciliation of balances of certain secured[including interest recompense, note no 44 (g)] and unsecuredborrowings, trade receivables and trade payables (including MSMEparties, CHAs and of Sub-contractor [read with note no. 54 of the auditedstandalone financial statements]) and others current financial liabilities(including capital creditors), receivables/payables from/to relatedparties, loans & advances and inventory lying with third parties/in transitbalances as per the books has been considered. The management is inthe process of reconciliation /confirmation of the same and is confidentthat there will not be any material impact on the profit for the year andthe 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 thecompany is procuring Coal for power generation by making arrangementwith coal handling agents (CHAs) (who engaged for lifting andtransportation of Coal from different collieries). Sometimes there havebeen delays in supply of Coal by CHA(s) as they had to procure coalfrom mines located at distance places and having substantial valueand volume and also quality variance. The management is in processto further strengthen its internal control over handling /transportation,receipt, consumption etc of coal through process automation. Also, theCompany has regular system of physical verification which is carried outby independent third party.
(c) Overdue receivables of amounting to Rs.52,499 Lakhs (including delayedpayment surcharges of Rs. 11,743 lakhs on delayed payment/overduereceivables) (net off amount received as per APTEL order during theyear, refer to note no. 52) {Previous year Rs. 55,583 Lakhs (includingdelayed 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 persuasiveaction for the recovery and is confident about the recovery/realisation ofthe same. Accordingly these been considered good and realisable by themanagement.
(d) In earlier year, the Company had claimed Additional Coal levy of Rs. 295per metric tonne (levied in view of the Hon'ble Supreme Court judgmentof 2014 on cancellation of nos. of mines) from MPPMCL amounting toRs. 2245 lakhs (approx.) in respect of Nigire STPP in Tariff. however thesame was disallowed by MPERC. An appeal was filed with APTEL againstthe Order of MPERC, during the previous year, APTEL has not acceptedthe appeal and confirmed that additional levy of Rs. 295 per metric tonneimposed on original allottees of the captive coal block does not entitled tobe included in the determination of the generation tariff to be passed onto the end consumers. In view of the order of APTEL,Company has madeprovision of Rs. 2,245 lakhs during the previous year against the amountshown as recoverable. Company has filed an appeal in Hon'ble SupremeCourt against the above stated order which is pending.
(e) In earlier years, one of the Capital supplier, having outstanding balance ofRs.11,742 Lakhs as on 31.03.2025 (previous year Rs.11,742 Lakhs),had initiated arbitration proceedings against the Company. During theprevious year, Arbitral Tribunal has pronounced its award(s) on 4thOctober 2023 and awarded a sum of Rs. 9,154 lakhs in favour of capitalsupplier (net off Rs. 2,394 lakhs awarded in favour of the Company)along with interest and also as per awards company to release the bankguarantee(BG) provided by the capital supplier and bear the expensesincurred by the capital supplier for extending BG and Company to bearthe 50% of the arbitral fee paid by the Capital supplier. Company has filedappeals with Delhi Hight Court against the Order of Arbitral Tribunal andwhich is pending. The next date of hearing is 8th July,2025, Accordingly
considering the above stated facts and appeals filed, no additionalprovision has been considered necessary by the management at thisstage.(Estimated net claim including interest till 31st march 2025 (netoff balance outstanding in books of Rs 11,742 lakhs) of Rs 8,046 lakhshas been considered as contingent liability).
The annual return of GST for F.Y 2024-25 is under process of filing withstatutory authorities. The Management believe that there will not be any anymaterial impact over financial statement/filing. The date of filing of GST returnare 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 aredetermined by MPERC vide Multi Year Tairff (MYT) Order dated 28.02.2025.Capacity charges determined for each year are subject to be trued up onthe basis of audited financial statements. During FY 2024-25, invoicesfor Capacity Charges have been raised on MPPMCL on the basis of Tariffapproved for same year as determined vide Multi Year Tairff (MYT) Orderdated 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 accordinglyRs 11,899 lakhs (including delayed payment surcharge of Rs 5603 lakhs)(Previous year 63 Lakhs on account of true up of FY 2022-23) recoverablefrom MPPMCL on account of true up has been adjusted in revenue/otherincome.
JBTPP has filed the following petitions and proceedings for the sameare in progress:
(i) Appeals with APTEL against True up Orders for Tariff of financialyears from 2017-18 to 2022-23 and MYT Order for 2019-24 forcertain disallowances in tariff. Further appeals regarding recoveryof bills disputed by MPPMCL on account of invoking force majeureclause is also pending before APTEL. Also, appeal by MPPMCLagainst the APTEL order for revision of Tariff of FY 2014-15 FY2015-16 and FY2016-17 is pending before Supreme Court ofIndia.
(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 dated28.02.2025. Capacity charges determined for each year are subjectto be trued up on the basis of audited financial statements. During FY2024-25, invoices for Capacity Charges have been raised on MPPMCLon the basis of Tariff approved for same year as determined vide MultiYear Tairff (MYT) Order dated 28.02.2025. No True up Orders has beenreceived during the current year ( PY true up Order for FY 22-23 receivedand impact of the same of Rs. 182 lakhs was accounted).
JNSTPP has filed the following petitions and proceedings for the sameare in progress:
(i) Appeals with APTEL against Trueup Orders for Tariff of financialyears 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 periodFY 2019-20 to FY 2023-24.
(iii) Appeal with APTEL for disallowance of capital cost by MPERC indetermination of capital cost vide Order dated 24.05.2017 for FY14-15 and FY 15-16.
(iv) On the auction of certain coal mines by the Central Government inearlier year, as per the provisions of rules framed thereunder, theAmelia (North) Coal Mines was allotted to JPVL for the end use of
power generation at JNSTPP with payment of additional premiumof Rs 612/- per MT.
Additional premium is in the nature of charge payable for gettingthe right to mine coal from the captive coal mine allocated tothe Company, and accordingly has been treated as capital costfor calculation of capacity charges. The same is not accepted byRegulatory Commission and appeal is pending with APTEL. In theopinion of the management, the company has credible case inits favour. Accordingly, the payment made for Additional Premiumhas been reflected as Expenditure in the books of accounts of thecompany as a matter of principal of prudence. The treatmentof amount paid towards Additional Premium will be revisedaccordingly for the purposes of Capacity Charge Calculation onfinal settlement /decision of the APTEL.
(c) Vishnuprayag Hydro Electric power plant (VHEP)
(i) In respect of Vishnuprayag HEP Company has accounted for revenuefor the year ended 31st March, 2025 based on provisional tariffcomputed 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 beenrevised considering release of minimum average water flowfrom river as per Hon'ble NGT Order dated June 05, 2018 from03.10.2018 to 14th December 2019 (1695.54 MU) and w.e.f15th December 2019 (1432.28MU) as per Central Governmentnotification no SO 5195(E) dated 09.10.2018 and further amendedvide notification no SO 3286(E) dated 14.09.2019 through Barragefor aquatic life, which is more than the release of water flow asmentioned in the PPA. The revision of design energy has beenapproved by CEA.
A petition was filed with Hon'ble UPERC for amendment in PPAin respect of Design Energy and Tariff. UPERC vide its Orderdated 22.02.2021 had not accepted the change in design energyand Ordered that in case actual saleable generation is less thandesign energy then full primary energy charges will be paid.UPPCL has objected the revision in design energy and submitted arepresentation with CEA for review of approved design energy onthe grounds that current generation is more than/ equal to originaldesign generation. An appeal was filed against by the Company theabove Order of UPERC.
APTEL has allowed the appeal vide its Order dated 15.12.2022and 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 theorder of APTEL. Hon'ble Supreme Court has granted stay on theOrder passed by APTEL, hence application filed with UPERC is alsostayed.
Currently, Tariff is claimed considering Saleable Design Energy at1545.87 MU (against revised saleable design energy approvedby CEA at 1247.80 MU after increase in e flow as per directions/notifications of NGT / MoEF). Tariff will be revised and arrearsalongwith carrying cost will be claimed on account of change inSaleable Design Energy at 1247.80 MU after decision of pendingAppeal.
Further as per Order in Petition no 1376/2018, UPERC has directedin para 45 of the Order that in any Tariff Year if actual generation isless than design energy as mentioned in PPA, the actual generationwill be treated as design energy for computation of primary energycharges 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 Insurancecharges 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 thename Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March, 2009 for JAL and its subsidiaries/ associates and appointed SBILife 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 Fundby 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 Trustunder the name Jaiprakash Associates Limited Employees Gratuity Fund Trust (the Trust) for employees of JAL and its subsidiaries/associates and the Trust beenmanaged 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’sGratuity 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 theemployees of the Company and considering the prudence, during the financial year 2024-2025 the Company has provided an amount of Rs 481 lakhs additionallyto 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 financialassets 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 atthe 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 theCompany’s operations. The Company’s principal financial assets include trade and other receivables and cash and cash equivalents that are derived directly from itsoperations
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 andliquidity 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 threetypes 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 marketrisk 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 tooptimize the Company's position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensivecorporate 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 inprice 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 usedin 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 arisesfrom 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 isbased 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 aremainly 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 creditrisk 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. Thedisputes 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 higherauthorities / 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 termcontract are being done with the state own Discoms which are backed by the State Government, Sound Financials and large consumer base for the procurement. Theshort term contracts are being done mainly on Power exchanges, which operate under the regulations & have payment security mechanism. Company has definedthe 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 customerswhich 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 andMarch 31, 2024. The Company’s credit policies to limit credit exposure is by having payment security mechanism according to applicable regulatory requirements. Inrespect 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 risksassociated 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 particularauthorities against the company for the receivables under dispute. Trade receivable balances mainly comprise of outstanding from beneficiaries and the policy of theCompany is to make provisions for credit loss takes into consideration of factors that the dispute is decided against us by a respective authorityFor 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 alltimes maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company's management is responsible for liquidity, funding as well assettlement. In addition, processes the policies related to such risks. Senior management monitors the company's net liquidity position through rolling, forecast on thebasis 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 leastequal 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, (ACFAsystem), 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 locatedat 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 workitself, 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 mobilizationadvance 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 amountingto 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. TheCompany 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 liquidateddamages 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 fromOffical 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 madeby 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 thatthe 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 writingor 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 yearin 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 ofrecording 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 notenabled 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 atapplication 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 tamperedwith 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 statutoryrequirements 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