1. General corporate information
TRF Limited, (the Company) incorporated in 1962 has its Registered
Office at 11 Station Road, Burma Mines, Jamshedpur 831007. The Company
is listed on the National Stock Exchange of India Limited, BSE Limited
and The Calcutta Stock Exchange Limited. The Company undertakes turnkey
projects of material handling for the infrastructure sector such as
power and ports and industrial sector such as steel plants, cement,
fertilisers and mining. The Company is also engaged in production of
such material handling equipments at its manufacturing plant at
2. Rights, preferences and restrictions attached to shares i) Equity
The Company has one class of equity shares having a par value of Rs.I0
per share. Each shareholder is entitled for one vote per share held.
The dividend proposed by the board of directors is subject to the
approval of the shareholders in the ensuing annual general meeting,
except in case of interim dividend. In the event of liquidation, the
equity shareholders are entitled to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion
to the number of equity shares held by the shareholders.
3. Additional information to the Financial Statements
As at As at
Rs. lac Rs. lac
a) Sales tax matters in dispute relating
to issues of applicability and
classification # 22,278.19 20,593.37
In respect of the above sales tax
matters in dispute, the Company has
deposited Rs. 80.19 lac
(31.03.2013: Rs.15.37 lac) against
various orders, pending disposal of the
appeals. This amount is included under
Note 14 - Long term loans and advances.
b) Excise duty and service tax matters 1,415.65 1,006.32
in dispute relating to
In respect of the above excise and
service tax matters in dispute, the
Company has deposited Rs.40 lac
(31.03.2013: Rs.2.50 lac) against
various orders, pending disposal of the
appeals. This amount is
included under Note 14 - Long
term loans and advances.
c) Income tax matters in dispute 3,450.48 1,543.90
d) Corporate guarantee given on behalf of
i) York Transport Equipment (Asia)
Pte Limited - USD 18.0 M
(31.03.2014:USD 22.5 m) 11,284.34 13,544.96
Loan outstanding against the guarantee 11,045.74 10,792.41
ii) Dutch Lanka Trailer Manufacturers
Limited - USD 1.5 m
(31.03.2014 : USD 1.5 m) 940.36 903.00
Load outstanding against the guarantee - 185.71
e) Claims against the Company not acknowledged
as debt (Primarily of liquidated damages and
other claims made by customers) 3,385.76 3,502.48
f) Others 33.42 33.42
Future cash outflows in respect of above matters are determinable only
on receipt of judgments/decisionspendingatvariousforums/authorities.
# Includes an amount of Rs. 18,388.57 lac (31.03.2014 Rs. 18,388.57
lac) towards differential tax and penalty charged by the Assessing
Officer for the financial year 2005-06 to 2008-09. The Assessing
Officer had originally passed the assessment order based on the returns
filed by the Company. Subsequently based on an objection raised by the
Accountant General''s Office during their audit the assessing officer
has raised this demand on 28.01.2013 for additional tax of Rs. 5,985.90
lac and penalty of Rs.12,402.67 lac. The additional tax is computed by
the assessing office based on the total turnover reported in the annual
audited financial statements. The difference in the turnover as per the
annual financial statements and the returns is on account of difference
in revenue recognised as per Accounting Standard (AS)- 7 Construction
Contracts visa a vis bills actually raised on the customers and
turnover from turnkey contracts which are executed outside the state of
Jharkhand for which state of Jharkhand has no jurisdiction. The returns
for those turnkey contracts are filed with the local VAT authorities of
the respective states under the respective VAT laws. The assessing
officer''s contention of suppression in turnover is blatantly incorrect
and hence the Company filed appeal with the Joint Commissioner. The
Joint Commissioner after hearing the Company has passed orders
remanding back the case for reassessment to the assessment officer.
Based on the order the assessing officer has initiated reassessment
procedures and the Company has filed its reply/documents called by the
Assessing Officer. Neither company made any payment nor department has
claimed any payment against above impugned demand in respect of appeal
4. The Company''s application seeking exemption from the provisions
of the Employees State Insurance Act, 1948 has been rejected by the
Department of Labour, Government of Jharkhand. The Company has filed an
appeal with the High Court of Jharkhand at Ranchi against the order. In
the absence of any demand from the authorities the amount of liability
is not quantifiable.
5. The Company has incurred losses of Rs. 8,735.12 lac during the
year ended March 31, 2015 and the accumulated losses as on that date,
amounting to Rs 16,940.22 lac has eroded the net worth of the Company.
As at the balance sheet date, the current liabilities of the Company
exceed the current assets of the Company by Rs. 5,798.88 lac The
Company is of the view that all potential future losses which has been
booked during the current year will not result in immediate outflow
over the next twelve months from the balance sheet date. Further, the
Company projects operating profits during the next 12 months from the
balance sheet date and is confident that it will be able to generate
cash from liquidating the retention money held by the customers for a
majority of the contracts which are at an advanced stage. Further, the
Company expects to generate cash flows from its certain subsidiaries,
by way of dividend. Given the above facts, the Company will be able to
sufficiently generate future cash flows to meet the future obligations
of the Company in the next twelve months from the balance sheet date.
Accordingly, these financial statements have been prepared on a going
concern basis and do not include any adjustments relating to the
recoverability and classification of recorded assets or to amounts and
classification of liabilities that might result if the Company is
unable to continue as a going concern.
6. The management has re estimated the useful life of the fixed
assets and aligned the useful life with that indicated in Part C of
Schedule II to the 2013 Act at the commencement of the year. During the
process the Company has also reclassified certain assets the effect of
which has been reflected in Adjustment column in Note 11. As per the
requirements of the transitional provisions, the carrying amount after
adjusting the residual value (if any) of assets whose remaining useful
life was nil as at the transition date of Rs. 67.76 lac has been
recognised in the statement of profit and loss and included as part of
depreciation for the current year.
7. No provision has been made for liquidated damages and other
claims by certain customers, wherever these have been refuted by the
Company and the management expects to settle them without any loss.
Pending settlement of these claims, they have been disclosed under
contingent liabilities as Claims against the Company not acknowledged
as debt. [Refer Note 28.01.(e)].The related sundry debtors balances
have been considered in the financial statements as fully recoverable.
8. The Company is offering the retention money to income tax on due
basis from the financial year 2005-06 onwards. Out of prudence the
Company was providing for the current tax without considering this
deferment. The Company''s stand of deferring the retention money has been
accepted by the tax authorities based on the legal decisions which came
subsequently. During the previous year the Company has recomputed the
provision for current tax based on the income determined in the final
assessment orders for the financial year 2005-06 to 2009-10 and based on
the income offered to tax in the tax returns for the financial years
2010-11 to 2012-13. The Company has also provided for the deferred tax
on the net amount of retention deferred in the income tax returns.
9. Scrap and off-cuts generated at the contract sites are being
accounted on cash basis, since segregation and quantification of such
items at the financial year end are not practicable in view of the
contracts being in progress.
10. Revision in projected profit/(loss) on contracts arising from
change in estimates of cost to completion of contracts are reflected
during the course of the work in each accounting year. These have not
been disclosed separately in the Financial Statements as the effect
cannot be accurately determined.
The Company has identified the business segments as primary segment for
the purpose of reporting under Accounting Standards (AS) 17 - Segment
Reporting . Revenues and expenses directly attributable to business
segments are reported under the respective segments. Expenses which are
not directly identifiable to each of the business segments have been
allocated on the basis of associated revenues and manpower efforts. All
other expenses which are not attributable or allocable to business
segments have been disclosed as unallocable expenses. Assets and
liabilities that are directly attributable or allocable to business
segments are disclosed under the respective segments. All other assets
and liabilities are included as part of unallocable. The Company has
identified the following business segments asprimary segments
(a) Products & Services
(b) Projects & Services
In the Company''s operations within India there is no significant
difference in the economic conditions prevailing in the various states
of India. Revenue from sales to customers outside India is less than
10% in the current and previous year. Hence disclosure on geographical
segment are not applicable.
Information on related party transactions as per Accounting Standards
(AS) 18 - Related party Disclosures A) List of related parties and
11. Name of the related party Nature of Relationship
TRF Singapore Pte Ltd. Subsidiary Companies the
TRF Holdings Pte Limited of which is held directly
Adhithya Automotive Application Pvt Ltd Company
YORK Transport Equipment (Asia) Pte Ltd.
YORK Transport Equipment Pty Ltd.
YORK Sales (Thailand) Co. Ltd
YTE Transport Equipment (SA) (Pty) Limited
Rednet Pte Ltd.
YTE Special Products Pte Ltd Subsidiary Companies the
ownership of which
Qingdao YTE Special Products Co. Ltd. is held through subsidiary
YORK Transport Equipment (India) Pvt. Ltd.
YORK Transport Equipment (Shanghai) Co. Ltd.
Dutch Lanka Trailer Manufacturers Limited
Dutch Lanka Engineering Pvt Ltd
Dutch Lanka Trailers LLC
Hewitt Robins International Holding Ltd.
Hewitt Robins International Ltd.
Tata Steel Limited Promoter Company holding
more than 20%
Key Managerial Personnel
Mr. Sudhir L. Deoras Managing Director
12. Previous year''s figures have been regrouped/reclasified where
necessary to correspond with the current year''s