NOTE 1. DISCLOSURE AS PER ACCOUNTING STANDARD - 15
(a) Gratuity :
(i) The Employees'''' Gratuity Fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
(ii) Actuarial Valuation of Gratuity is based on the maximum Liability of Rs, 10 lacs as provided under the Gratuity Act,l972.
(b) Leave Encashment
(i) The obligation for Leave Encashment is recognized and disclosed as per the Actuarial Valuation Report.
(c) Disclosure as per Actuarial Valuation Report:
(i) Expenses recognized during the year (Under the Head “Employees Benefit Expenses”)
All undertakings of the Company are Engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment - Drilling and Related Services under Accounting Standard - 17 “Segment Reporting”. The Company operates in a Single Geographical Segment - India.
As per Accounting Standard - 18, the Company''''s related parties and transactions are disclosed below:
A. List of related parties & relationships:
i. Joint Venture of Reporting Enterprise
Discovery Drilling Pte Ltd., Singapore (DDPL)
Virtue Drilling Pte Ltd., Singapore (VDPL)
ii. Key Management Personnel
Name of person Relationship
Shri H K Khanna CEO
Shri Pawan Kumar Rustagi CFO
Shri Rajeev Ranjan Company Secretery
iii. Other Related Parties
Shri D P Jindal Chairman
Shri Raghav Jindal Managing Director
Sigma Infrastructure Pvt Ltd
Maharashtra Seamless Ltd
Jindal Pipes Ltd
Neptune Buildtech Pvt Ltd
(ceased to be Related Party w.e.f 01-04-2015)
(i) An amount of Rs, 4,408,732 is recoverable from ONGC relating rig PN-3.This matter is under arbitration. Management is confident to win the case and considered good for recovery.
(ii) Trade recoverable includes a sum of US$14,772,408.55 (In Indian rupees Rs, 658,553,972 restated on 31-03-2011) as on 31.03.2016, which are outstanding from ONGC Ltd for more than 7 years .Since there has been no realization in this account, the outstanding amount in US$ has not been restated after 31.03.2011 and, a sum of Rs, 1500 lacs has been provided for till year end 31.03.2013 towards its doubtful realization. No further provision is considered necessary by the management as there is every possibility of its full realization after finality of the case pending before the courts.
(iii) The Company had given an advance of Rs, 1098 Lacs to Marine Oil Gas Private limited in FY 2008-09 & 2009 -10 in respect of which no realization could be made . No interest income has been recognized since financial year 20ll-l2.The company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon''''ble Delhi High Court in September 20l3 against this Company along with related persons and Companies of Ex-Managing Director
(iv) Loans & Advances include an interest free loan of Rs, l 048.00 lacs, paid to Jindal Drilling & Industries Limited Employee Welfare Trust., which had been formed with the sole objective of employees welfare. The management is considering the same as good and fully recoverable.
(v) Trade Payable includes Rs, 9591.47 Lacs payable to Noble Drilling Corporation on account of Chartered Hire charges relating to Rig ''''EDHOLT''''.Paragon offshore Drilling LLC (Formerly Noble Drilling Corporation) filed request for arbitration before international court of Arbitration of International chamber of commerce, France against Jindal Drilling & Industries ltd. Paragon had invoked the Arbitration clause, Arbitrator is appointed & its proceedings are in progress.
All the above loans and advances given are for Business purposes.
i) Loans and advances mentioned supra have been shown under “Long Term Loans & Advances” and repayable on demand but not beyond seven years.
ii) Loans to employee / welfare trusts as per the Company''''s policy are not considered. None of the loans and associate Companies have, per se, made investments in Shares of the company
The above details are as per regulation 34(3) and 53(f) of SEBI (Listing and Disclosure Requirements) Regulations,20l5 NOTE 26.14:
a) Dues to micro and small enterprises have been determined as per information collected by the management & has been relied upon by the auditors.
b) In the opinion of the Management and to the best of their knowledge and belief, the value of Current Assets, loans and advances, if realized in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.
c) Figures have been rounded off to the nearest rupee.
d) Previous year''''s figures have been re-grouped / re-arranged / re-classified wherever considered necessary.