«TABLE OF CONTENTS DEFINITION, TECHNICAL GLOSSARY AND ABBREVIATIONS FORWARD-LOOKING STATEMENTS RISK FACTORS SUMMARY SUMMARY OPERATING AND FINANCIAL ...»
A17.2 A suit has been filed before the Chief Judicial Magistrate, Khandwa, relating to disruption of work indulged in by the villagers of Panthia, by manhandling the employees of JAL and puncturing of tyres of vehicles, during the period September 14 to 17, 2004. A cross suit has been filed by the said villagers. Both the suits are pending.
Cases filed against JAL A17.3 There is 1 case pending before MACT, Barwah, Khargone in respect of a road accident involving an amount of Rs. 1.50 million.
A17.4 There is 1 case filed by the District Mining Officer, Khandwa in Sub-Divisional Magistrate Court, Khandwa alleging illegal mining undertaken by JAL. The amount involved in this case is Rs.0.59 million. This case is pending.
B. Cases against Directors B.1 There is 1 criminal appeal filed under section 378 of the Criminal Procedure Code, 1973 in the Shimla High Court by the State of Himachal Pradesh challenging the acquittal of nine accused persons including Mr. Sunil Kumar Sharma, the Managing Director and Mr. M.S. Srivastava, Director of erstwhile JIL (now JAL). The said appeal is pending.
B.2 The above mentioned criminal appeal filed under section 378 of the Criminal Procedure Code, 1973 in the Shimla High Court by the State of Himachal Pradesh challenging the acquittal of nine accused persons is also filed against Mr. Viren Jain, director of JPVL and JVL. The said appeal is pending.
B.3 A small shareholder had alleged that one of the corporate shareholder of the erstwhile JIL, acting in concert with Mr. Jaiprakash Gaur, Chairman, JAL, JEL, JHL, and JKHCL, and Chairman and Managing Director of JHPL, had, between the period August 1999 and September 1999, purchased the shares of erstwhile JIL without complying with the provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. On the basis of the said allegation, SEBI had called for information from Mr. Jaiprakash Gaur and erstwhile JIL, which was furnished to SEBI.
A personal hearing was also held by SEBI in or about February 2004, where Mr. Jaiprakash Gaur submitted that he had not acted in concert with any corporate shareholder of the erstwhile JIL, as alleged. Since the said hearing, neither Mr.
Jaiprakash Gaur nor erstwhile JIL have heard anything from SEBI. In the meantime, erstwhile JIL has already merged with JAL.
B.4 A case by erstwhile JIL against Twenty First Century Securities Limited and others, relating to fake shares of erstwhile JIL pledged with Twenty First Century Securities Limited, was originally filed in the Delhi High Court, and the Delhi High Court had granted interim injunction sought for by erstwhile JIL for restraining Twenty First Century Securities Limited from further dealing with the said fake shares. Subsequently, this case was transferred to the Tis Hazari Court. Thereafter, another case connected with the fake shares of erstwhile JIL has been filed in the Court of Chief Metropolitan Magistrate at Kolkata by Twenty First Century Securities Limited, making, inter alia, Mr.
Jaiprakash Gaur, Chairman, JAL, JEL, JHL, and JKHCL, and Chairman and Mnagaing Director of JHPL, as a party. In an appeal filed by Mr. Jaiprakash Gaur in the Kolkata High Court, the proceedings against Mr. Jaiprakash Gaur were stayed. The said cases are pending.
B.5 A complaint was filed against H.B.Holdings Limited and its directors, New Delhi by the Registrar of Companies, New Delhi in respect of certain disclosure made in a prospectus relating to a public issue of H.B. Holdings Limited, in which Mr. Gopi K. Arora, director or JAL and JHPL, was also a director. This complaint has been subsequently stayed by the Delhi High Court. The complaint and the High Court proceedings are pending. Mr.Gopi K.
Arora was a director in H.B.Holdings Limited for a few months during the period 1994-95.
B.6 There are two pending cases under section 138 of Negotiable Instruments Act, 1881 against Mr. R.K. Narang, director of JHPL, which were filed against him during the course of his previous employment with IFCI Limited and his nomination as director on the Board of Punjab Wireless Systems Limited. The cases were filed by National SC & ST Financial Development Corporation Limited, and are still pending.
Contingent liability and outstanding litigation involving our group companies C. Jaypee Hotels Limited (JHL) Contingent Liabilities not provided for as on March 31, 2004 Outstanding Bank Guarantees of Rs. 9.57 million (Previous Year Rs. 21.26 million) Letters of Credit of Rs. 6.62 million (Previous Year Rs. Nil) furnished by the bankers on behalf of the company are secured by margin money of Rs. 1.93 million (Previous Year Rs. 0.06 million) and FDRs with banks of Rs.1.74 million (Previous Year Rs.2.29 million).
Outstanding Litigation of JHL as on December 31, 2004 The information of outstanding litigation is being divided between the hotels owned by JHL and disclosed accordingly.
C1. Hotel Vasant Continental, New Delhi (HVC) Cases filed by JHL (HVC) Civil Suits C1.1 There are 5 civil suits filed by JHL in respect of services provided by HVC. The aggregate amount involved in all these suits is Rs. 2.64 million.
Electricity related Cases C1.2 There is 1 case pending before the Tis Hazari Court filed against Delhi Vidyut Board for refund of fixed charges paid to them in 1987. The amount claimed is Rs. 0.93 million, together with interest at the rate of 12% per annum from the date of deposit.
Tax related Cases C1.3 There are 2 writ petitions filed in Delhi High Court challenging the rateable value and rate of tax imposed by the Municipal Corporation of Delhi. These writ petitions are pending.
Miscellaneous Cases C1.4 There is 1 case pending before the Additional District Judge, Tiz Hazari Court, New Delhi praying for a permanent injunction to restrain workers from indulging in unlawful activities. The injunction order is effective till date.
Cases filed against JHL (HVC) Labour Cases C1.5 There are 3 cases filed against JHL pending before Labour Court with regard to dispute pertaining to termination of services, resignation and non-payment of minimum wages by the contractor to its employees. All these cases are pending.
C1.6 There are 2 cases pending against JHL before the Delhi High Court, one challenging the striking off the employees’ names from the muster rolls,-and the second challenging the termination of the services of a worker for misbehavior with senior officers.
Compensation Cases C1.7 There is 1 case filed against the JHL before the District Court, MACT, Delhi for third party claim liability in relation to a road accident involving a vehicle of JHL. The insurance company has also been impleaded as a party since JHL had taken a policy of insurance in respect of the said vehicle.
Miscellaneous Cases C1.8 There are 2 cases filed by Virendra Yadav c/o Gift Centre and Khyber Art Emporium respectively, against JHL before the Delhi High Court praying for injunction to maintain their status within HVC. These cases are pending for arguments.
C1.9 There is 1 case filed by the State Police against JHL and two of its employees in the District Court, New Delhi, alleging negligence in handling the situation of fire in 1986. This case is pending for arguments.
C1.10 There is 1 case pending by Indian Performing Right Society Limited before Delhi High Court restraining the hotels of the JHL from playing music in public without obtaining license.
C2. Hotel Jaypee Siddharth, New Delhi (HJS) Cases filed against JHL (HJS) Labour Cases C2.11 There are 2 cases pending before Labour Court, New Delhi filed against JHL (HJS) by two employees, one challenging termination due to absenteeism, and another for dismissal from service.
Compensation Case C2.12 There is 1 case filed by an employee of JHL (HJS) and pending before District Court, Delhi for damage arising out of cutting a finger while at work.
Motor Accident Claim C2.13 There is 1 case pending before the District Court and Motor Accident Claims Tribunal, New Delhi, claiming compensation for rash and negligent driving. This case is pending for evidence.
C3. Hotel Jaypee Residency Manor, Mussoorie (HJRM) Cases filed by JHL (HJRM) C3.1 There is 1 case before the District Court at Dehradun praying for a permanent injunction for restraining workers from indulging in unlawful activities.
Cases filed against JHL (HJRM) Taxation case C3.2 There is 1 case pending before Civil Court at Dehradun pertaining to conservancy tax imposed by Nagar Palika Parishad on JHL due to wrong disposal of waste from the hotel. Pursuant to the Civil Court’s Order, JHL has furnished a bank guarantee of Rs. 0.55 million pending decision of the Court.
C3.3 There is 1 case pending before Civil Court, Dehradun for cancellation of sewerage tax imposed by Garhwal Jal Sansthan Mussoorie, involving Rs. 1.50 million.
C3.4 There are a case filed by JHL (HJRM) before Chief Judicial Magistrate at Dehradun for quashing of the orders of Nagar Palika Parishad, Mussoorie revising the property tax from Rs. 0.02 million to Rs. 0.36 million per annum.
C4. Jaypee Hotels Limited, Agra Cases filed against JHL (Agra) C4.1 There is 1 case pending before Presiding Officer, Labour Court, Agra challenging the termination of services of an employee on the ground of his abstaining from his duties after completion of the project period. The terminated employee has claimed re-instatement with back wages.
D. Jaypee Ventures Limited (JVL) Contingent Liability not provided for as on March 31, 2004 Contingent Liability not provided for in respect of Outstanding Bank Guarantee as on 31.03.2004: Rs. 0.02 million Outstanding Litigation of JVL as on December 31, 2004 Case filed by JVL D.1 International Design Engineering Associates Private Limited (now JVL) had invoked the arbitration clause for recovery of consideration money for consultancy services provided to one Sharat Industries Limited (formerly known as Sharat Sea Foods Limited) for the design of pond for cultivation of sea foods pursuant to an agreement entered into between JVL and Sharat S Industries Limited. The Arbitrators gave an Award in favour of JVL directing Sharat Industries Limited to pay to JVL an amount of Rs. 0.99 million together with liquidated damages calculated as per the formula prescribed in the Award. An Execution Petition being No. 147/99 is filed in Delhi High Court by JVL to enforce the said Award against Sharat Industries Limited. Parallely, an Original Miscellaneous Petition 80/99 is filed by Sharat Industries Limited challenging the same Award, execution of which has been applied for by JVL vide its Execution Petition No. 147/99. The execution application as well as the Miscellaneous Petition are pending.
E. JIL Information Technology Limited (JILIT) Contingent Liability not provided for as on March 31, 2004
1. Bank Guarantee has been given in favour of Governor of Uttar Pradesh through Trade Tax Officer, NOIDA for an amount not exceeding Rs. 0.05 million against security for Sales Tax Registration. The Margin Money paid against the same is Rs. 0.05 million by way of Fixed Deposit, excluding interest thereon.
2. Bank Guarantee has also been given in favour of Rashtriya Indian Military College, Dehradun (Uttaranchal) for an amount not exceeding Rs. 0.02 million being performance guarantee related to supply of computer software on right to use basis. The Margin Money paid against the same is Rs. 0.02 million by way of Fixed Deposit, excluding interest thereon. The said Bank Guarantee shall be valid only upto March 31, 2005.
Outstanding Litigation of JILIT as on December 31, 2004 Cases filed by JILIT Tax Cases E.1 An appeal has been filed by JILIT before the Commissioner of Income Tax (Appeals) I, Lucknow against the Income Tax Assessment Order issued under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2001which wrongly disallowed the PF contribution amounting to Rs. 0.12 million and depreciation being of amount Rs. 0.18 million by the Deputy Commissioner of Income Tax. The appeal is pending.
F. Jaypee Karcham Hydro Corporation Limited (JKHCL) Contingent Liability not provided for as on March 31, 2004 Contingent liabilities for Bank Guarantee provided by the holding company Rs.20.00 million (Previous Year Rs. 20.00 million).
Outstanding Litigation of JKHCL as on December 31, 2004 Nil G. Jaiprakash Power Ventures Limited (JPVL) Contingent Liability not provided for as on March 31, 2004 Nil Outstanding Litigation of JPVL as on December 31, 2004 Nil H. Jaiprakash Enterprises Limited (JEL) Contingent Liability not provided for as on March 31, 2004
2. Estimated amount of contract to be executed on capital accounts and not provided for Rs. 62.17 million (previous year Nil) Outstanding Litigation of JEL as on December 31, 2004 Cases filed by JEL Taxation Cases H1.1 There are 2 appeals pending before the Income Tax Appellate Tribunal, Lucknow Bench, Lucknow, challenging the order of the Commissioner of Income Tax (Appeals) confirming the additions / dis-allowances made by Assessing Officer during the Assessment Years 1989-1990 and 1998-1999. In respect of Assessment Year 1989-1990, an amount of Rs. 1.30 million will be recovered as dues towards tax; while in respect of Assessment Year 1998-1999, since the assessed income is loss, there will be no recovery of dues towards tax.
Cases filed against JEL Taxation cases H1.2 There is 1 appeal filed by Income Tax Department, pending before Income Tax Appellate Tribunal, Lucknow Bench, Lucknow, challenging the order of the Commissioner of Income Tax (Appeals) pertaining to wrong addition of Rs. 0.46 million made by the Assessing Officer on account of under stated hire charges income from machinery for the Assessment Year 1991-1992.
H1.3 There is 1 appeal filed by Income Tax Department against the order passed by the Income tax Appellate Tribunal, Lucknow Bench, Lucknow relating to relief granted to JEL on the entire expenditure on machinery repairs amounting to Rs. 1.96 million pertaining to Assessment Year 1991-1992. The financial implication of JEL in this case is Rs. 1.00 million.
H1.4 There is 1 case pending assessment proceeding before Assistant Commissioner of Income Tax, Range – I, Lucknow for the Assessment Year 1989-1990 relating to disallowances of (i) earlier expenses amounting to Rs. 0.02 million, (ii) unabsorbed investment allowance amounting to Rs. 2.80 million, (iii) depreciation in cement division amounting to Rs. 3.60 million and (iv) disallowance under section 80J amounting to Rs. 1.50 million.