Home  »  Company  »  Triveni Turbine  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Triveni Turbine Ltd.

Mar 31, 2014

The accompanying Note Nos.1 to 46 form an integral part of the financial statements.

1. Based on the intimation received by the Company from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the relevant information is provided here below:-

2. i) The Company has taken various residential and office premises under operating leases. These leases are not non- cancellable and the unexpired period ranges between 6 months and 4 years. The lease agreements are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest- free security deposits under certain agreements.

a) Lease payments under operating leases aggregating to Rs. 6.58 million (Rs. 6.98 million) are recognised in the statement of profit and loss under "Other expenses" in Note No 25.

b) There are no minimum future lease payments as there are no non-cancellable leases.

c) There are no contingent rents recognised in the statement of profit and loss.

d) There are no sub-lease arrangements entered into by the Company.

ii) The Company has also given certain portions of its office premises under cancellable and non-cancellable operating leases. These leases are extendable by mutual consent and on mutually agreeable terms. The gross carrying amount, accumulated depreciation and depreciation recognised in the statement of profit and loss in respect of such portions of the leased premises are not separately identifable. There is no impairment loss in respect of such premises. No contingent rent has been recognised in the statement of profit and loss. Future minimum lease payments under non- cancellable operating leases for the period the facilities are expected to be occupied is as under:

3. Prior period expense Rs. Nil (previous year Rs. 0.16 million represents legal charges in the statement of profit and loss under "Other expenses" in Note No. 25).

4. Disclosure under Accounting Standard (AS) 7 "Construction Contracts" in respect of contracts in progress as at the end of the year is provided here-below:

5. The Company primarily operates in one business segment – Power Generating Equipment and Solutions. There are no reportable geographical segments.

6. Information regarding Related Parties and transactions with them is given below:

a) Related Party where control exists

i) Subsidiary

GE Triveni Limited

ii) Key Management Personnel

Mr. Dhruv M. Sawhney - Chairman and Managing Director

b) details of related parties with whom transactions have taken place during the year :

Name of related Party Relationship

Triveni Engineering & Industries Ltd (TEIL) Investing company holding substantial interest.

GE Triveni Limited (GETL) Subsidiary Company

Mr. Dhruv M. Sawhney (DMS) Chairman & Managing Director (Key Management Person)

Mr. Nikhil Sawhney (NS) Vice Chairman and Managing Director (Key Management Person)

Mr. Tarun Sawhney (TS) Relative of Key Management Person

Mr. Arun Mote (AM) Executive Director (Key Management Person)

Tirath Ram Shah Charitable Trust (TRSCT) Enterprise in which Key Management Personnel or their relatives have

significant infuence

Kameni Upaskar Ltd (KUL) Company in which Key Management Personnel or their relatives have

significant infuence

b) Particulars of un-hedged foreign currency exposures at the balance sheet date Import trade payables

1. US$ 0.13 million (Rs. 7.76 million) [Prev. Yr: US$ 0.88 million (Rs. 48,24 million)]

2. Euro 0.14 million (Rs. 11.46 million) [Prev. Yr: Euro 0.04 million (Rs. 2.72 million)]

3. CHF 0.003 million (Rs. 0.23 million) [Prev. Yr: CHF 0.002 million (Rs. 0.14 million)]

4. GBP 0.09 million (Rs. 8.83 million) [Prev. Yr: GBP 0.03 million (Rs. 2.84 million)]

5. JPY 19.94 million (Rs. 11.77 million) [Prev. Yr: JPY 9.50 million (Rs. 5.57 million)] export trade receivable

1. US$ 0.36 million (Rs. 21.19 million) [Prev. Yr: US$ Nil (Rs. Nil)

2. Euro 0.03 million (Rs. 2.64 million) [Prev. Yr: Euro Nil (Rs. Nil)

3. GBP 0.32 million (Rs. 31.34 million) [Prev. Yr: GBP Nil (Rs. Nil)

7. The Company has made provisions during the year for employee benefits relating to its obligations towards Defined contribution and Defined benefit plans. The required disclosures in this regard are given below:

8. The Company has undertaken necessary steps to comply with the Transfer Pricing regulations. The management is of the opinion that the transactions specified in the regulations are at arms-length and hence the aforesaid regulation will not have any impact on the financial statements, particularly the amount of tax expense and that of provision for taxation.

e) Remittance in foreign currencies for dividend:

The Company has not remitted any amount in foreign currencies on account of dividend during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by/on behalf of non-resident shareholders. The particulars of dividend paid to non-resident shareholders (including non-resident indian shareholders) which were declared during the year are as under:-

9. Previous year''s figures have been regrouped/rearranged wherever necessary, to make them comparable to those of the current year.


Mar 31, 2013

1. The Company had earlier exited the rural and semi- urban retail business and engineering business of design, supply and commissioning of specialised sugar manufacturing machinery. The following statement shows the profit / (loss) on disposal of assets and settlement of liabilities relating to discontinued operations:

2. The Company has incurred an expenditure of Rs. 54.22 million (Rs. 42.78 million) for Research and Development activities and such expenditure has been expensed under various heads. The break up of such expenditure is as under:

3. Contingent Liabilities (to the extent not provided for)

Claims against the Company not acknowledged as debts :

(Rs. in Million)

SL No Particulars Amount of Contingent Liability Amount Paid

1 Excise duty 39.92 26.15

(39.68) (26.15)

2 Service tax 42.39 -

(12.80) (-)

3 Others 2.08 -

(2.08) (-)

Total 84.39 26.15

(54.56) (26.15)

a) The outflow arising from these claims is uncertain. Such outflow, if any, will be after adjusting reimbursement of

Rs. 8.06 Million received from customers (Previous year: Rs. 8.06 Million) in respect of excise duty demand on account of denial of benefit under Notification No. 6/2000 issued by the Central Government under Section 5A(1) of the Central Excise Act, 1944.

b) The amounts shown above represent the best estimates arrived at on the basis of available information. The uncertainties, possible payments and reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants, as the case may be, and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has a strong legal position against such disputes.

4. Estimated amount of contracts remaining to be executed on capital account and not provided for : Rs. 20.89 Million (Rs. 0.28 Million ) after adjusting advances paid amounting to Rs. 4.40 Million (Rs. 0.10 Million). The Company has also made a commitment to purchase 25 acres of industrial land near Bangalore and paid Rs. 50.12 Million (Rs. 50.12 Milliion) as an advance. The total amount of commitment in this respect is not determinable as the allotment and price are yet to be finalised by Karnataka Industrial Areas Development Board.

5. Title to certain fixed assets vested in the Company under the Scheme of Arrangement and arising out of business conducted till the date the Scheme became effective, could not be transferred in the name of the Company. These assets are being held in trust, by Triveni Engineering & Industries Ltd. The requisite duties, if any, on determination thereof by the Authorities, will be paid and accounted for by the Company appropriately.

6. 40,000 stock options in Triveni Engineering & Industries Ltd. (TEIL) had been granted to an employee of the Company on April 30, 2010, while he was an employee of TEIL, prior to the demerger of its steam turbine business and vesting of such business in the Company under a Scheme of Arrangement, duly approved by the Court. As per the Scheme of Arrangement, an employee stock option scheme styled as ''New Stock Option Scheme'' has been formulated by the Company and the employee has been granted 40,000 stock options in lieu of the stock options held by him in TEIL. In accordance with the Scheme of Arrangement, and in line with the best practices, adjustment has been made for the corporate action of demerger, by adjusting the exercise price and share entitlement ratio under the options granted, so as to ensure that the fair value of options immediately prior to and immediately subsequent to the corporate action remains unchanged.

7. ) The Company has taken various residential and office premises under operating leases. These are not non-cancellable and the unexpired period ranges between 6 months and 3 years and the leases are renewable by mutual consent. The Company has given refundable interest- free security deposits under certain agreements.

a) Lease payments under operating leases amounting to Rs. 6.98 Million (Rs. 6.02 Million) are recognised in the statement of profit and loss under "Rent" in Note No 24.

b) There are no minimum future lease payments as there are no non-cancellable leases.

ii) The Company has also given certain portions of its office premises under cancellable and non-cancellable operating leases. These leases are extendable by mutual consent and on mutually agreeable terms. The gross carrying amount, accumulated depreciation and depreciation recognised in the statement of profit and loss in respect of such portions of the leased premises are not separately identifiable. There is no impairment loss in respect of such premises. No contingent rent has been recognised in the statement of profit and loss. Future minimum lease payments under non- cancellable leases are as under :

8. Prior period expenses of Rs. 0.16 Million (previous year Rs. Nil) in Note No.24 represents legal charges.

9. Disclosure under Accounting Standard (AS) 7 "Construction Contracts" in respect of contracts in progress as at the end of the year is provided here-below:

10. The Company primarily operates in one business segment - Power Generating Equipment and Solutions. There are no reportable geographical segments.

11. Information regarding Related Parties and transactions with them is given below: a) Related Party where control exists

i) Subsidiary

GE Triveni Limited

ii) Key Management Personnel

Mr. Dhruv M. Sawhney - Chairman and Managing Director

12 . The Company has made provisions during the year for employee benefits relating to its obligations for contributions to defined contribution plans / defined benefit plans. The required disclosures in this regard are given below:

13. Transfer Pricing regulations

The Company has undertaken necessary steps to comply with the Transfer Pricing regulations.The Management is of the opinion that the transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

14. Previous year''s figures have been regrouped/rearranged wherever necessary, to make them comparable to those for the current year.


Mar 31, 2012

A) Terms/rights attached to equity shares

The Company has only one class of equity shares with a par value of Rs 1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares are entitled to receive the remaining assets of the Company, after meeting all liabilities and distribution of all preferential amounts, in proportion to their shareholding.

b) Terms/rights attached to preference shares

As per the Scheme of Arrangement ("Scheme") duly approved by Allahabad High Court vide order dated April 19, 2011, 28,000,000 equity shares of Rs 1/- each fully paid up by Triveni Engineering & Industries Limited stood converted into 2,800,000 - 8% Cumulative Reedemable Preference Shares of Rs 10/- each fully paid up. These Preference Shares carry cumulative dividend @8% p.a. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Preference shares are redeemable at par at the end of 5 years from the date of allotment. However, the Company has an option to redeem these shares at any time after the end of 6 months from the date of allotment. The preference shareholders have a preference vis-a-vis equity shareholders with respect to any dividend that may be declared by the Company as well as with regard to redemption of capital in the event of liquidation.

c) Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding) 257,880,150 equity shares of Rs1/- each were allotted on May 10, 2011, as fully paid up to the shareholders of Triveni Engineering & Industries Ltd (TEIL) in the ratio of one equity share for every one equity share held by them in TEIL, pursuant to the Scheme.

Nature of provisions

Warranties: The Company gives warranties on certain products and services, undertaking to repair the items that fail to perform satisfactorily during the warranty period. Provisions made as at March 31,2012 represent the amount of expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within the period of two years.

Liquidated damages: In respect of certain products, the Company has contractual obligations towards customers for matters relating to delivery and performance. The provisions represent the amount estimated to meet the cost of such obligations. The timing of the outflow is expected to be within one year.

Cost to completion: The provision represents costs of materials and services, including balancing of plant, required for integration of turbine package at site, prior to commissioning.

1. Contingent Liabilities (to the extent not provided for)

a) Claims against the Company not acknowledged as debts:

(Rs in Million)

S.No particulars Amount of contingent Liability Amount

1 Excise duty 39.68 26.15

(39.45) (26.15)

2 Service tax 12.80 -

(5.21) (-)

3 Others 2.08 -

(2.08) (-)

Total 54.56 26.15

(46.74) (26.15)

Excise duty: The outflow arising from these claims is uncertain. Such outflow, if any, will be after adjusting reimbursement of Rs 8.06 Million received from customers (Previous year: likely reimbursement of Rs 12.02 Million) in respect of central excise demand on account of denial of benefit under Notification No. 6/2000 issued by the Central Government under Section 5A(1) of the Central Excise Act,1944.

a) The amounts shown above represent the best estimates arrived at on the basis of available information. The uncertainties, possible payments and reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants, as the case may be, and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal position against such disputes.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for : Rs 0.29 Million (Rs 72.34 Million) after adjusting advances paid amounting to Rs 0.10 Million (Rs14.45 Million). The Company has also made a commitment to purchase 25 acres of industrial land near Bangalore and paid Rs 50.12 Million (Rs 0.12 Million) as advance. The total amount of commitment in this respect is not determinable as the allotment and price are yet to be finalised by Karnataka Industrial Areas Development Board.

3. Title to certain assets vested in the Company under the Scheme of Arrangement and arising out of business conducted till the date the Scheme became effective, could not be transferred to the name of the Company. Hence, these assets are being held in trust, by Triveni Engineering & Industries Ltd. The requisite duties, if any, on determination thereof by the Authorities, shall be paid and accounted for by the Company appropriately.

4. Pursuant to the Employee Stock Option Scheme (ESOP 2009) framed by Triveni Engineering & Industries Ltd. (demerged company), 2,00,000 stock options had been granted to certain eligible employees of the demerged company including certain employees of the demerged undertaking. The stock options were granted on April 30, 2010 at a grant price of Rs 108.05 per option, at the then prevailing market price of the shares of the demerged company. The options had a graded vesting period - 50% after 12 months and the balance after 24 months from the date of grant and such options were to be exercised within 2 years from the date of vesting.

Consequent to the demerger of the Turbine Business (demerged undertaking) of the demerged company and vesting of business in the Company, all the employees of the demerged undertaking have become employees of the Company. Pending receipt of necessary approvals/clarifications from the Securities and Exchange Board of India ("SEBI")/Bombay Stock Exchange/National Stock Exchange under the SEBI Guidelines, to give effect to the entitlements to stock options as a result of the demerger, such options granted have not been considered or accounted for in the financial statements of the Company.

5. i) The Company has taken various residential and office premises under operating leases. These are not non-cancellable and the unexpired period ranges between 6 months and 3 years and are renewable by mutual consent. The Company has given refundable interest- free security deposits under certain agreements.

a) Lease payments under operating leases of Rs 5.43 Million (Rs 3.26 Million) are recognised in the statement of profit and loss under "Rent" in Note No 24.

b) There are no minimum future lease payments as there are no non-cancellable operating leases.

ii) The Company has also given certain portions of its office premises under cancellable as well as non-cancellable operating leases. These leases are extendable by mutual consent and on mutually agreeable terms. The gross carrying amount, accumulated depreciation and depreciation recognised in the statement of profit and loss in respect of such portion of the leased premises are not separately identifiable. There is no impairment loss in respect of such premises. No contingent rent has been recognised in the statement of profit and loss. Future minimum lease payments under non-cancellable leases are as under:

6. The Company primarily operates in one business segment - Power Generating Equipment and Solutions. There are no reportable geographical segments.

b) Particulars of unhedged foreign currency exposures as at the balance sheet date Import trade payable

1. US$ 602,747 (Rs 31.06 Million) [Prev. Yr. : US$ 262,655 (Rs 1.18 Million)]

2. Euro 175,333 (Rs 12.11 Million) [Prev. Yr. : Euro 314,482 (Rs 20.12 Million)]

3. CHF 20,845 (Rs 1.20 Million) [Prev. Yr. : CHF 29,500 (Rs 1.46 Million)]

4. GBP 88,246 (Rs 7.29 Million) [Prev. Yr. : GBP 16,537 (Rs 1.20 Million)]

5. JPY 19,607,878 (Rs 12.39 Million) [Prev. Yr. : JPY 33,187,484 (Rs 18.20 Million)]

Export trade receivable

1. US$ Nil (Rs Nil) [Prev. Yr. : US$ 34,661 (Rs 1.53 Million)]

2. Euro Nil (Rs Nil) [Prev. Yr.: Euro 24,711 (Rs 1.54 Million)]

7. The Company has incurred an expenditure of Rs 42.78 Million (Rs 20.10 Million) including capital expenditure of Rs 6.93 Million (Rs 3.72 Million) in respect of research and development activities.

8. The Company has made provisions for employee benefits in accordance with the Accounting Standard (AS) 15 "Employee Benefits" During the year, the Company has recognised the following amounts in its financial statements:

9. In view of the vesting of the turbine business in the Company with effect from October 1, 2010 under the Court approved Scheme of Arrangement, the figures for the financial year ended March 31, 2011 include the operations of the turbine business for a period of six months. Accordingly, the performance for the current year is not comparable with that of the earlier year.