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Notes to Accounts of Transformers & Rectifiers (India) Ltd.

Mar 31, 2015

1. SHARE CAPITAL

(iv) Rights of Equity Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. Contingent liabilities in respect of As at As at 31st Mar 2015 31st Mar 2014

Disputed demand of Central Excise/Income Tax Department 482.64 800.49

3. Estimated amount of contracts remaining to be executed on capital account (net of capital advances) and not provided for Rs. 158.87 Lacs (Previous year Rs. 539.27 Lacs).

4. Tax assessment of the Company under Income Tax Act 1961, has been completed up to financial year 2011-12 and the VAT assessment up to financial year 2010-11.

5. "During the year, the Company has purchased 6,350 nos. Equity shares of Rs.10 each of its associate Company viz M/s. Savas Engineering Company Pvt. Ltd. for an amount of Rs. 12.70 Lacs as a result, M/s. Savas Engineering Company Pvt. Ltd has become a wholly owned subsidiary of the Company.

The Company has an investment of Rs. 409.80 Lacs in its subsidiary company "M/s. Savas Engineering Company Pvt. Ltd." by way of equity. The Company has also given an interest bearing loan of Rs. 647.61 Lacs to the said wholly owned subsidiary company. As per the Audited financial statements for the year ended on 31st March, 2015, its net worth is Rs. 145.31 Lacs. In the opinion of the management the aforesaid investment in equity and loan is long term and strategic in nature. The Company has obtained an independent valuation report from Government Approved Valuer as at 1st March, 2015 for the wholly owned subsidiary company's land and office & factory buildings, which value is in excess of the cost of investment and loan given and hence there is no diminution in value of investment and therefore no provision is considered necessary for the current financial year and loan amount is considered good and recoverable."

6. Trade receivables outstanding for more than 6 months include receivables of Rs. 1,254.82 Lacs, which are overdue from a customer whose gas based power plant project is in an advanced stage of completion. The commissioning of the said plant is dependent on the supplies of natural gas. Though the customer is confident of obtaining the requisite gas allocation from the Government of India (GOI), there are uncertainties in respect of timing of getting the gas allocation from the GOI. The customer has confirmed the outstanding balance as on 31st March, 2015, and based on the frequent discussions with the customer, the management of the Company is hopeful of recovering the outstanding amount and hence said amount is considered good and recoverable.

7. Disclosures regarding Derivative Instruments

(a) The Company uses forward exchange contracts to hedge its exposure in foreign currency. There are no contracts entered into for the purpose of speculation.

8. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

1. Contingent liabilities in respect of As at As at 31st Mar 2014 31st Mar 2013

Disputed demand of Central Excise/Income Tax Department 800.49 247.22

2. Estimated amount of contracts remaining to be executed on capital account (net of capital advances) and not provided for Rs. 539-27 Lacs (Previous year Rs. 860.75 Lacs).

3. Tax assessment of the Company under Income Tax Act, 1961 has been completed up to financial year 2010-11 and the VAT assessment upto financial year 2009-10.

4. The Company has an investment of Rs. 41.50 Lacs in its associate company "Savas Engineering Company Private Limited." (50%) by way of equity. The Company has also given an interest bearing loan of Rs. 1,003.21 Lacs to the said Associate Company. As per the Audited financial statements for the year ended on 31st March 2014 , its net worth is Rs. 60.65 lacs. In the opinion of the management the aforesaid investment in equity and loan is long term and strategic in nature. The Company had obtained an independent valuation report for the associate company''s plot, factory building and machinery by Government Approved Valuer, which value is in excess of the cost of investment and loan given and hence there is no diminution in value of investment and therefore no provision is considered necessary for the current financial year and loan amount is considered good and recoverable.

5. Trade receivables outstanding for more than 6 months include receivables of Rs.1,254.82 Lacs, which are overdue from a customer whose gas based power plant project is in advanced stage of completion. The commissioning of the said plant is dependent on the supplies of natural gas. Though the customer is confident of obtaining the requisite gas allocation from the Government of India (GOI), there are uncertainties in respect of timing of getting the gas allocation from the GOI. The customer has confirmed the outstanding balance as on 31st March 2014, and based on the frequent discussions with the customer, the management of the Company is hopeful of recovering the outstanding amount and hence said amount is considered good and recoverable.

6. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1. Contingent liabilities in respect of

(Rs in Lacs)

As at 31st Mar 2012 As at 31st Mar 2011

Disputed demand of Central Excise/Income Tax Department 305.61 417.08

2. Estimated amount of contracts remaining to be executed on capital account (net of capital advances) for tangible assets and not provided for Rs 845.10 Lacs [Previous year Rs 28.90 Lacs].

3. Tax assessment of the Company under Income Tax Act, 1961 has been completed upto financial year 2008-09 and the VAT assessment upto financial year 2008-09.

31. Consequent to inadequacy of profits for the year, under section 349 of the Companies Act, 1956, the remuneration paid to Chairman cum Wholetime Director has resulted in an excess by Rs 77.23 Lacs, for the which steps being taken by Company to obtain Central Government approval.

4. Disclosures regarding Derivative Instruments

(a) The Company uses forward exchange contracts to hedge its exposure in foreign currency. There are no contracts entered into for the purpose of speculation.

(b) The information on derivative instruments as on 31st March, 2012 is as follows:

Defined contribution Plans:

During the year, Rs 74.72 Lacs (Previous year Rs 62.57 Lacs) recognised as an expense and included in the note 24 of profit & loss statement under the head "Contribution to Provident and other funds".

5. segment Reporting

(A) Primary segment:

In accordance with the requirements of AS - 17 on Segment Reporting, the Company has determined its business segment as "Electric Transformer". Since all of the Company's business is from "Electric Transformer", there are no other primary reportable segments. Thus the segment revenue, segment result, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of charge for depreciation during the year are all reflected in the financial statement as of and for the year ended 31st March, 2012.

6. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1. Contingent Liabilities in respect of :

(Rs in Lacs)

Particulars As At As At

31st Mar 2011 31st Mar 2010

a) Disputed demand of Central Excise Department/Income Tax Department 417.08 653.68

b) Guarantee given by bankers on behalf of Company 21,078.42 13,042.85

c) Corporate Guarantees of Rs. 2889.00 Lacs given by Company for loan taken by a subsidiary / Associate Company 1,156,20 443.90

d) Performance Guarantees given by Company 33.47 111.05

e) Bills discounted with Banks 3,296.35 3,135.90

f) Import duty benefit towards duty free import of raw materials made in respect of which export obligations are yet to be discharged. 16.12 7.94

g) Claims against Company not acknowledged as debts Amount not Amount not ascertained ascertained

2. Estimated amount of contracts remaining to be executed on capital account (net of capital advances) and not provided for Rs. 28.90 Lacs (Previous year Rs. 25.00 Lacs).

3. Cenvat duty shown as a deduction from the Gross Sales and Service Income represents the amount of cenvat duty collected on sales & service income. Cenvat duty expensed represents the difference between excise duty element in the amounts of closing stocks & opening stocks and excise duty paid which is not recoverable from sales.

4. Tax assessment of the company under Income Tax Act 1961, has been completed up to Financial Year 2007-08 and the sales tax assessment up to Financial Year 2006-07.

5. Disclosures regarding Derivative Instruments :

(A) The company uses forward exchange contracts to hedge its exposure in foreign currency. There are no contracts entered into for the purpose of speculation.

(B) The information on derivative instruments as on 31st March, 2011 is as follows:

(B) Defined Contribution Plans :

During the year, Rs. 62.57 Lacs (Previous year Rs. 53.25 Lacs) recognised as an expense and included in the Schedule 15 of Profit and Loss Account under the head "Contribution to Provident and Other funds".

6. Segment Reporting

(A) Primary Segment:

In accordance with the requirements of Accounting Standard-17 on Segment Reporting, the Company has determined its business segment as "Electric Transformer". Since all of the Companys business is from "Electric Transformer", there are no other primary reportable segments. Thus the segment revenue, segment result, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of charge for depreciation during the year are all reflected in the financial statement as of and for the year ended 31st March, 2011.

7. Previous years figures have been regrouped wherever necessary.

 
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