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Notes to Accounts of TRF Ltd.

Mar 31, 2017

1. Above includes Rs. 24,903.02 lakhs (31.03.2016 Rs 25,519.10, 01.04.2015 Rs. 27,639.92 lakhs) retention money which are recoverable on completion of the project as per the terms of the relevant contract.

2. Above also includes retention money recoverable amounting to Rs 1,928.53 lakhs [31.03.2016 Rs. 1,928.53, 01.04.2015 Rs. NIL] which are not due as per the terms of relevant contract and have been collected against submission of Bank guarantee. Corresponding liability is disclosed as ''Advance received from customers under ''note no-28(a)''

3. For details of carrying amount of trade receivables pledged as security for secured borrowings refer note 20.

4. The credit period given to customers range from 0 to 30 days. No interest is charged on the overdue amounts.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance for trade receivable due for more than 12 months, 24 months and 36 months provision is recorded at 25%, 50% and 100% respectively. For Retention receivable due for more than 12 months and 24 months provision is recorded at 50% and 100% respectively.

5. Information about major customers

Included in revenue arising from direct sales of goods and services of(excluding excise duty) Rs 50,583.46 lakhs (March 31, 2016: Rs 54,044.98 lakhs) are revenues of approximately Rs. 30,200.50 lakhs (March 31, 2016: Rs 31,969.55 lakhs) which arose of the sale to the company''s top three customers. No other single customer contributed 10% or more of the Company''s revenue for both 2016-2017 and 2015-2016

6. Employee benefit plans

7. Defined contribution plans

The Company provide Provident Fund facility to all employees. The Company provides superannuation benefits to selected employees. The assets of the plans are held separately from those of the Company in funds under the control of the trustees in case of trust or of the employees provident fund organization. The contributions are expensed as they are incurred in line with the treatment of wages and salaries. The Company''s Provident Fund is exempted under section 17 of Employees'' Provident Fund and Miscellaneous Provision Act, 1952. Conditions for exemption stipulate that the Company shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis interest rate declared by the Employees ‘Provident Fund Organization. The liability as on the balance sheet is ascertained by an independent actuarial valuation.

The Company has recognized an amount of Rs. 507.92 lakhs as expenses for the year ended March 31,2017 (For the year ended March 31,2016: Rs.501.21 lakhs) towards contribution to the following defined contribution plans.

8. Defined benefit plans

The Company provides Gratuity benefit to all employees. The Company provides post retirement pension for retired whole-time directors. The assets of the gratuity plans are held separately from those of the Company in funds under the control of the trustees of the independent trusts or with the life insurance companies. The board of trustees of the gratuity fund composed of an equal number of representatives from both employees and employers. The board of the Fund is required by law and by the trust deed to act in the interest of the Fund and of all relevant stakeholders in the scheme. The board of trustee of the fund and management of life insurance company is responsible for the investment policy with regard to the assets of the Fund. Post retirement pension plan is not funded.

Under the gratuity plan, the employees with minimum five years of continuous service are entitled to lump sum payment at the time of separation calculated based on the last drawn salary and number of years of service rendered with the Company. Under the post retirement pension, the Company pays monthly pension to retired whole-time directors as decided by the board of directors.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase attrition and mortality. The sensitivity analysis given below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 130.13 lakhs (increase by Rs. 154.55 lakhs) [as at March 31, 2016: decrease by Rs. 107.92 lakhs (increase by Rs. 125.53 lakhs)]

- If the expected salary increase growth increases (decreases) by 1%, the defined benefit obligation would increase by Rs. 151.48 lakhs (decrease by Rs. 130.15 lakhs) [as at March 31, 2016: increase by Rs. 125.53 lakhs (decrease by Rs. 108.64 lakhs)]

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is likely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is same as applied in calculating the defined benefit obligation liability recognized in the balance sheet. There was no change in the method and assumptions used in preparing the sensitivity analysis from prior years.

- If the expected pension increase growth increases (decreases) by 1%, the defined benefit obligation would increase by Rs. 58.19 lakhs (decrease by Rs. 51.78 lakhs) [ as at March 31, 2016: increase by Rs. 107.46 lakhs (decrease by Rs. 94.56 lakhs)] The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is likely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is same as applied in calculating the defined benefit obligation liability recognized in the balance sheet. There was no change in the method and assumptions used in preparing the sensitivity analysis from prior years.

9. Financial instruments

10. Capital management

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Capital structure of the Company consists of net debt (borrowings as detailed in notes 20 and 25 offset by cash and bank balances) and the total equity of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, long term borrowings, short-term borrowings, less cash and short-term deposits.

11. Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The Company''s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions. The Company is exposed to market risk( including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written principles on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments. The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

The corporate treasury management reports on quarterly basis to the board of directors that monitors risks and policies implemented to mitigate risk exposures.

12. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into derivative financial instruments to manage _ its exposure to foreign currency risk and interest rate risk.

13. Foreign currency risk management

The Company enter into sale and purchase transactions and borrowings denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.

Foreign currency sensitivity analysis

The following table details the Company''s sensitivity to a 10% increase and decrease in exchange rate between the pairs of currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for 10% change in foreign currency rates. The sensitivity analysis includes trade payables, receivables, external loans as well as loans to foreign operations within the Group where the denomination of the monetary item is in a currency other than the functional currency of the lender or the borrower. The sensitivity analysis has been undertaken on net unhedged exposure in foreign currency.

14. Interest rate risk management

Interest rate risk is the risk that the fair value of future cash flows of financial instrument will fluctuate because of change in market interest rates.The company''s exposure to the risk of changes in market interest rates relates primarily to the company''s long -term debt obligations with floating interest rates.

Interest rate sensitivity analysis

The company manages its interest rate risk by entering into interest rate swap contracts to swap floating interest rates for fixed interest rates over the duration of its borrowings for all its foreign currency long term loans. As at 31 March 2017, for all the long term foreign currency loans, the company has an interest rate swap, wherein the floating interest rates are converted into fixed interest rates.

The sensitivity analysis given below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

- Profit for the year ended March 31,2017 would decrease/increase by Rs. 68.45 lakhs (for the year ended March 31,2016: decrease/increase by Rs. 19.53 lakhs)

The Company''s sensitivity to interest rates has decreased/increased during the current year mainly due to repayment of loan installments matured during the year.

Interest rate swap contracts

The Company enters into interest rate swaps to hedge interest rate risks. Under the interest rate swap contracts, the Company exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Company to mitigate the risk of changing interest rates on the fair value of fixed rate debt and cash flow exposures on variable rate debt. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using the curves at the end of the reporting period and credit risk inherent in the contract. _

15. Credit risk management

Credit risks refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company''s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, finance receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material concentrations of credit risks. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest and commodity pricing through proven financial instruments.

The credit risk on bank balances and derivative financial instruments is limited because the counterparties are banks with high credit ratings.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable.

The credit risk on bank balances and derivative financial instruments is limited because the counterparties are banks with high credit ratings.

16. Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the maturity profile of Company''s non-derivative financial liabilities with agreed repayment period. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay.

-Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within that range.

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

17. The Company has incurred loss of Rs. 2,691.10 lakhs during the year ended March 31,2017(March 31,2016: Loss of Rs 993.58 lakhs) and the accumulated losses as of the balance sheet date amounting to Rs. 20,434.96 lakhs has eroded the net worth of the Company. The Company expects to generate cash flows from liquidating retention moneys relating to contracts that are in advanced stage of completion and expected dividend remittances from its wholly owned subsidiaries, which will be sufficient to meet future obligations of the Company in the next twelve months from the balance sheet date. Accordingly, the financial statements have been prepared on a going concern basis.

18. 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 44.(e)]. The related sundry debtors balances have been considered in the financial statements as fully recoverable.

19. 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.

20. 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.

21. Operating lease

The Company''s significant leasing arrangements are in respect of operating leases for premises (residential, office, warehouse etc). The leasing arrangements which normally have a tenure of eleven months to three years are cancellable with a reasonable notice, and are renewable by mutual consent at agreed terms. Lease rentals aggregating to Rs 306.84 lakhs are charged as rent to the statement of profit and loss (for the year March 31, 2016 Rs 355.39 lakhs)

22. Under Previous GAAP, non-current investments were stated at cost less provision for diminution in value of investments, if any. Under Ind AS, financial assets in equity instruments, other than equity instruments in Subsidiaries and Joint venture, have been classified as Fair Value through Other Comprehensive Income (FVTOCI) through an irrevocable election at the date of transition.

23. Under previous GAAP, the net mark-to market losses on short term derivative financial instruments, as the Balance Sheet Date, were recognized in statement of profit and loss and the net gains, if any, were ignored. In case of long term derivative contracts, the exchange difference were recognized to statement of profit and loss through foreign currency long term monetary items. Under Ind AS, such derivative financial instruments are to be recognized at fair value and the movement is recognized in statement of profit and loss.

24. Loan processing fees/transaction cost under Ind AS is considered for calculating effective interest rate. The impact for the period subsequent to the date of transition is accounted in the statement of profit and loss.

25. On the date of transition, deferred tax impact on transition provision has been accounted in the Reserves, and consequential impact is accounted in the statement of profit and loss for the subsequent periods.

26. Defined benefit plans-under Ind AS, actuarial gain or losses arising on defined benefit plans are recognized in other comprehensive income, whereas under previous GAAP same was being charged to the statement of profit and loss.

27. Under the Previous GAAP, total comprehensive income was not reported therefore, the above reconciliation starts with profit under previous GAAP.

28. Reconciliation of Statement of Cash Flow

There are no material adjustments to the Statement of Cash Flows as reported under the Previous GAAP.

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

30. Approval of financial statements

The financial statements were approved for issue by the board of directors on May 23,2017.


Mar 31, 2016

Note:

1. Others include Rs. 25,519.10lakhs (31.03.2015 Rs. 27,639.92 lakhs) retention money which are recoverable on completion of the project as per the terms of the relevant contract. The retention money Rs. 5,305.99 lakhs (31.03.2015 Rs. 3,623.29 lakhs) are recoverable within the operating cycle of the Company but due after a period of one year

2. Others also include retention money recoverable amounting to Rs 1,928.53 lakhs which are not due as per the terms of relevant contract and have been collected against submission of Bank guarantee. Corresponding liability is disclosed as ‘Advance received from customers under ‘note no-10(e)''

Notes:

i) Consumption figures disclosed above are inclusive of adjustments for excess or shortage found during physical verification, write off of unserviceable items etc.

ii) Consumption of steel disclosed above is net of credit against sale of scrap of Rs. 618.69 lakhs (Previous year: Rs.709.45 lakhs)

3. The Company has incurred loss of Rs. 467.36 lakhs during the year ended March 31,2016(Previous year: Loss of Rs 8,735.12 lakhs) and the accumulated losses as of the balance sheet date amounting to Rs. 17,407.58 lakhs has eroded the net worth of the Company. The Company expects to generate cash flows from liquidating retention moneys relating to contracts that are in advanced stage of completion and expected dividend remittances from its wholly owned subsidiaries, which will be sufficient to meet future obligations of the Company in the next twelve months from the balance sheet date. Accordingly, the financial statements have been prepared on a going concern basis.

4.The Board of Directors based on the audited accounts for the year ended March 31, 2015 have concluded that the company is a Sick Company within the meaning of Section 3 (1) (o) of the Sick Industrial Companies (special Provision) Act, 1985 (SICA). The Board of Directors has made a reference under section 15 of SICA to the Board for Industrial and Financial Reconstruction (BIFR).The company has during the year filed a rehabilitation scheme with BIFR.

5.The management had 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 financial year 2014-15. During the process the Company has also reclassified certain assets the effect of which has been reflected in "Other reclassification" line in Note 11.

6. 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 27.01.(e)]. The related sundry debtors balances have been considered in the financial statements as fully recoverable.

7. 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 yearend are not practicable in view of the contracts being in progress.

8. 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.

9.The amortized portion of foreign exchange loss (net) incurred on long term foreign currency monetary items for the current year ended March 31,2016 is Rs. 141.01 lakhs (31.03.2015 Rs. 254.58 lakhs) The unamortized portion carried forward as on 31st March, 2016 is Rs. 127.83 lakhs (31.03.2015 : Rs. 268.84 lakhs)

10. Segment Reporting

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 as primary 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.

11. Previousyear''s figures have been regrouped / reclassified where necessary to correspond with the current year’s classification / disclosure.


Mar 31, 2015

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 Jamshedpur.

2. Rights, preferences and restrictions attached to shares i) Equity Shares

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 31.03. 31.03. 2015 2014 Rs. lac Rs. lac

Contingent Liabilities

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 applicability and classification

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 subsidiary companies

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 order.

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 relationship

11. Name of the related party Nature of Relationship

TRF Singapore Pte Ltd. Subsidiary Companies the ownership

TRF Holdings Pte Limited of which is held directly by the

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.

PTYORK Engineering

YTE Special Products Pte Ltd Subsidiary Companies the ownership of which

Qingdao YTE Special Products Co. Ltd. is held through subsidiary (ies)

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 classification/disclosure.


Mar 31, 2014

1. Additional information to the Financial Statements

As at As at 31.03.2014 31.03.2013 Rs. lac Rs. lac 1.01 Contingent Liabilities

a) Sales tax matters in dispute relating to issues of applicability and classification # 20,593.37 20,269.89

In respect of the above sales tax matters in dispute, the Company has deposited Rs.15.37 lac (31.03.2013: Rs.Nil) 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 in dispute relating to applicability and classification 1,006.32 1,004.91

In respect of the above excise and service tax matters in dispute, the Company has deposited Rs.2.50 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 1,543.90 1021.57

d) Corporate guarantee given on behalf of subsidiary companies

i) York Transport Equipment (Asia) Pte Limited - USD 22.5 m (31.03.2013: USD 22.5 m) 13,544.96 12,260.09

Loan outstanding against the guarantee 10,792.41 9,663.76

ii) Dutch Lanka Trailer Manufacturers Limited - USD 1.5 m (31.03.2013: USD 1.5m) 903.00 817.34

Loan outstanding against the guarantee 185.71 817.34

e) Claims against the Company not acknowledged as debt (Primarily of liquidated damages and other claims made by customers) 3,502.48 4,587.84

f) Others 33.42 33.42

Future cash outflows in respect of above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

# Includes an amount of Rs. 18,388.57 lac (31.03.2013 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 Officer 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 vis-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 has made any payment nor department has claimed any payment against above impugned demand in respect of appeal order.

1.02 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.

1.03 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.

1.04 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. Hence during the current 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.

1.05 Scrap and off-cuts generated at the contract sites are being accounted on cash basis, since segregation and quantification of such items at the end of the financial year are not practicable in view of the contracts being in progress.

1.06 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.

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

1.08 The amortized portion of foreign exchange loss (net) incurred on long term foreign currency monetary items for the current year ended March 31, 2014 is Rs. 798.39 lac (previous year Rs. 526.61 lac). The unamortized portion carried forward as on 31st March, 2014 is Rs. 521.65 lac (31.03.2013 : Rs. 284.75 lac).

1.09 Segment Reporting

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 as primary 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.


Mar 31, 2013

TRF Limited, 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. TRF Limited undertakes turnkey projects of material handling for the infrastructure sector such as power and steel plants, cement, ports, fertilisers and mining. The Company is also engaged in production of such material handling equipments at its plant at Jamshedpur.

(i) During the year ended March 31, 2012, the Company had set up a 100% subsidiary, TRF Holdings Pte Ltd at Singapore. Further during the previous year, the Company through its wholly owned subsidiaries TRF Singapore Pte Ltd. and TRF Holdings Pte. Ltd. have acquired the balance 49% shareholding in its subsidiary Dutch Lanka Trailers Manufacturers Limited (DLT), a Sri Lanka based company and 49% in York Transport Equipment (Asia) Pte Ltd, a Singapore based company for purchase consideration of USD 8.33 million and USD 18 million respectively making them a wholly owned subsidiaries.

(ii) No provision has been made for liquidated damages and other claims by certain customers, wherever these have been refuted by the Company and it expects to settle them without any loss. Pending settlement of these claims, the relative sundry debtors balances have been shown in the accounts as fully recoverable and have been disclosed as contingent liabilities under Claims against the Company not acknowledged as debt. (Refer note 25 (i)(h))

(iii) Scrap and off- cuts at the contract sites are being accounted on cash basis, since segregation and quantification of such items at the financial year end is not practicable in view of the contracts being in progress.

(iv) 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 in the Financial Statement as the effect cannot be accurately determined.

(v) Related party disclosures:

Information relating to related party transactions as per Accounting Standard 18 notified by the Companies (Accounting Standards) Rules, 2006. A) List of related parties and relationship

a) TRF Singapore Pte Ltd.

YORK Transport Equipment (Asia) Pte Ltd.

YORK Transport Equipment Pty Ltd.

YORK Sales (Thailand) Co. Ltd

YTE Transport Equipment (SA) (Pty) Limited

YORK Transport Equipment (Malaysia) Sdn Bhd*

Rednet Pte Ltd.

PT YORK Engineering YTE Special Products Pte Ltd

Qingdao YTE Special Products Co. Ltd. Z''

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 Manufacturers LLC Hewitt Robins International Holding Ltd.

Hewitt Robins International Ltd.

b) TRF Holdings Pte Ltd. (w.e.f 02.02.2012)

c) Adithya Automotive Application Pvt Ltd

d) Tata Steel Limited

e) Key Management Personnel Mr. Sudhir L. Deoras

Note: Related parties have been identified by the management ‘Liquidated during the year

(vi) Provision of Rs.131.30 lakhs (At at 31.03.2012 : Rs 147.00 lakhs) has been made for anticipated warranty costs relating to certain products manufactured and sold by the Company upto March 31, 2013 on the basis of technical and available cost estimates.

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


Mar 31, 2012

1. Additional Information to the Financial Statements

March 31, 2012 March 31, 2011 Rs. in lakhs Rs. in lakhs

(i) CONTINGENT LIABILITIES

(a) Sales tax matters in dispute relating to issues of applicability and classification 57.90 575.52

In respect of the above sales tax matters in dispute, the Company has deposited Nil (previous year Rs.10.54 lakhs) against various orders, pending disposal of the appeals. This amount is included under Note 13 - Long term loans and advances

(b) Excise duty and service tax matters in dispute relating to applicability and classification 159.22 1,114.29 In respect of the above excise and service tax matters in dispute, the Company has deposited Rs.2.50 lakhs (Previous year Rs.2.50 lakhs) against various orders, pending disposal of the appeals. This amount is included under Note 13 - Long term loans and advances.

(c) Income Tax matters in dispute 1,314.91 1,645.79

(d) Corporate guarantee given on behalf of subsidiary company (SGD 9.5 million) 3,864.60 3,398.15

(Outstanding amount against the guarantee ) (966.16) (1,982.25)

(e) Corporate guarantee given on behalf of subsidiary company (USD 18.00 million) 9,220.77 -

(Outstanding amount against the guarantee) (9,220.77) -

(f) Corporate guarantee on behalf of step down subsidiary company (USD 0.765 million) 391.88 -

(Outstanding amount against the guarantee) (391.88) -

(g) Claims against the Company not acknowledged as debt 535.83 461.00

(h) Others 33.42 23.42

Future cash outflows in respect of above matters are determinable only on receipt of judgments/decisions pending at various forums/ authorities

(ii) The Company has agreed to provide contingent support to its wholly owned direct subsidiary (WOS), TRF Singapore Pvt. Ltd and TRF Holdings Pvt. Ltd to meet its liabilities of SGD 2,418,370 (previous year SGD 3,292,000) and USD 51,400 respectively, only in the event of the WOS being unable to generate the required liquidity internally or externally

(iii) Estimated amount of contracts remaining to be executed on capital account and not provided for 477.77 361.99

(iv) Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2012 (Note 8 - Trade payables) is as under

(a) The Principal amount remaining unpaid to supplier as at the end of accounting year 274.29 195.39

(b) The Interest due thereon remaining unpaid to suppliers as at the end of the accounting year 10.64 1.53

(c) The amount of interest paid in terms of sec 16, along with the amount of payment made to supplier beyond the appointment day during the year 2011-12 _ _

(d) The amount of interest due and payable for the period of delay in making payment (which have been paid beyond the appointment date during the year but without adding interest specified under this act) 12.95 10.43

(e) The amount of interest accrued during the year and remaining unpaid at the end of the accounting year 23.59 11.96

The above information has been given to the extent such suppliers could be identified on the basis of information available with the Company and the same has been relied upon by the auditors.

(v) 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 in the Financial Statement as the effect cannot be accurately determined.

(vi) During the year ended March 31, 2012, the Company has set up a 100% subsidiary, TRF Holdings Pvt. Ltd at Singapore.

The Company through its wholly owned subsidiaries TRF Singapore Pte Ltd. and TRF Holdings Pvt. Ltd. have acquired the balance 49% shareholding in its subsidiary Dutch Lanka Trailers Manufacturers Limited (DLT), a Sri Lanka Based Company and 49% in York Transport Equipment (Asia) PTE Ltd, a Singapore based company for purchase consideration of USD 8.33 million and USD 18 million respectively making those a wholly owned subsidiary.

(vii) No provision has been made for liquidated damages and other claims by certain customers, wherever these have been refuted by the Company and it expects to settle them without any loss. Pending settlement of these claims, the relative sundry debtors balances have been shown in the accounts as fully recoverable and have been disclosed as contingent liabilities under Claims against the Company not acknowledged as debt. [Refer note 25 (i) (g)].

(viii) Scrap and off- cuts at the contract sites are being accounted on cash basis, since segregation and quantification of such items at the financial year end is not practicable in view of the contracts being in progress.

(ii) (a) The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The company has recognized in the Statement of Profit and Loss an amount of Rs. 505.48 lakhs ( previous year Rs. 451.76 lakhs) under defined contribution plans.

under the group gratuity scheme. Expenses recognized in the period as disclosed above excludes Rs. 10 lakhs (previous year Rs. 9.39 lakhs) contributions made by P& YE division to LIC. Amount recognized in the balance sheet as disclosed above excludes Rs.10 lakhs (previous year Rs. Nil lakhs) pertaining to P & YE division. Disclosures pursuant to AS - 15 have not been made in respect of the Post retirement Gratuity plan of P&YE division as details have not been furnished by LIC to the company and the amounts are not expected to be material. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU Bonds and Special Deposits. The long term estimate of the expected rate of return on the fund assets have been arrived at based on the asset allocation and prevailing yield rates on these asset classes. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching Government Bonds.

(ix) SEGMENT INFORMATION

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

Notes:

Pursuant to the 'Accounting Standard on Segment Reporting' (AS-17) notified by the Companies (Accounting Standard) Rules 2006, the Company has considered 'business segment' as primary segment for disclosure. The Company has identified business segments mentioned below as primary segments :

(i) Products & Services

(ii) Projects & Services

There is no significant difference in the business conditions prevailing in various states of India, where the Company has its operation. Revenue from sales to external customers outside India is less than 10% of the Company's total revenue. Hence, geographical segment disclosures are not considered necessary.

(x) Consequent upon the resignation of the Company Secretary of the Company with effect from December 1, 2011, the company is in the process of appointing a full time Company Secretary under the provision of section 383A of the Companies Act 1956. As a result, these financial statements have not been authenticated by a whole time Company Secretary under section 215 of the Companies Act 1956. In the absence of the Company Secretary, the Controller of Accounts has been appointed as the Compliance Officer.

(xi) The Revised Schedule VI has become effective from 1 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, 2010

March 31, 2010 March 31, 2009 Rupees in lakhs Rupees in lakhs

(i) CONTINGENT LIABILITIES

(a) Sales tax matters in dispute 106.33 291.52 In respect of the above sales tax matters in dispute, the Company has deposited Rs.34.10 lakhs (previous year Rs. 19.54 lakhs) against various orders, pending disposal of the appeals. This amount is included under Schedule 10 - Loans and Advances, considered good.

(b) The excise authorities have issued demand notices/show cause notices concerning excise duty / service tax and penalty which have been refuted by the Company and are pending disposal. 967.74 12.67

In respect of the above excise and service tax matters in dispute, the Company has deposited Rs.2.50 lakhs (Previous year Rs.2.50 lakhs) against various orders, pending disposal of the appeals. This amount is included under Schedule 10 - Loans and Advances, considered good.

(c) Service Tax matters in dispute 146.55 28.16

(d) Taxation matters in dispute 1,382.68 25.47

(e) Corporate guarantee on behalf of subsidiary company (SGD 9.5 million) 3,051.12 3,167.30

(f) Others 23.42 23.42

(ii) Estimated amount of contracts remaining to be executed on capital account and not provided for 1,089.97 989.21

(iii) Provision of Rs. 99.00 lakhs (Previous year :Rs 92.00 lakhs) has been made for anticipated warranty costs relating to certain products manufactured and sold by the Company upto March 31, 2010 on the basis of technical and available cost estimates, which being technical matters have been relied upon by the auditors.

(iv) 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 in the Financial Statement as the effect cannot be accurately determined.

(v) The Board of Directors of the Company at its meeting held on June 16, 2009 approved the issue of bonus shares in the ratio of 1:1 (one share for every share held by the existing shareholders of the Company). The share holders at the annual general meeting held on July 20, 2009 approved the Bonus issue and the bonus shares were alloted on August 6, 2009. These bonus shares amounting to Rs.550.22 lakhs were issued by capitalisation of General Reserves of the Company.

(vi) The Company has entered into a Shareholders Agreement on June 1, 2009 with M/s Jasper Industries Pvt. Ltd. and M/s Tata Capital Ltd to form a subsidiary Adithya Automotive Applications Pvt. Ltd.(AAA). Pursuant to the Shareholders Agreement, the Company has subscribed to 20,40,000 equity shares of Rs. 10 each in AAA Pvt. Ltd. by investing Rs. 204.00 lakhs. The Company has further subscribed 15,30,000 equity shares of Rs. 10 each during the year by investing Rs. 153.00 lakhs. The Shareholding pattern of AAA as on March 31, 2010 is as follows:

a. TRF Ltd. - 51%

b. Jasper Industries Pvt Ltd. - 29.05%

c. Tata Capital Ltd. - 19.95%

(vii) The Company through further infusion of capital in its wholly owned subsidiary TRF Singapore Pte Ltd has acquired 51% shares of Dutch Lanka Trailer Manufacturers Limited (DLT) a Sri Lanka based Company engaged in manufacture of trailers by investing USD 8.67 million. This has been funded by raising an External Commercial Borrowing of USD 9 million from DBS Bank, Singapore to be repaid over a period of 5 years.

(viii) No provision has been made for liquidated damages and other claims by certain customers, wherever these have been refuted by the Company and it expects to settle them without any loss. Pending settlement of these claims, the relative sundry debtors balances have been shown in the accounts as fully recoverable.

(ix) Scrap and off- cuts at the contract sites are being accounted on cash basis, since segregation and quantification of such items at the financial year end is not practicable in view of the contracts being in progress. Stock of Works division scrap and off-cuts have been brought into account as on March 31, 2010 in accordance with past practice.

(x) Construction Contracts Disclosure :

* Included in ‘Advances recoverable in cash or in kind or for value to be received - considered good - Schedule 10 -Loans & Advances ** Included in “dues to customers for contract in progress” - Schedule 11 - Current Liabilities

(xi) (a) The company has recognized in the Profit and Loss account an amount of Rs.352.07 lakhs ( previous year Rs. 268.57 lakhs) under defined contribution plans.

(b) The company operates post retirement defined benefit plans as follows :

a. Unfunded

1. Leave encashment

2. Pension to Directors

3. Farewell Gifts

4. Post Retirement Medical benefits of ex-employees.

b. Funded

1. Gratuity

(c) Details of unfunded retirement defined benefit obligations are as follows:

(c) Unfunded Post retirement defined benefit obligations (Contd.)

(d) Details of Post Retirement Gratuity Plan except in respect of Port and Yard Equipment division (P&YE) which is managed independently by Life Insurance Corporation of India (LIC) are as follows:- *

(d) Details of Post Retirement Gratuity Plan except in respect of Port and Yard Equipment division (P&YE) which is managed independently by Life Insurance Corporation of India (LIC) are as follows:- * (Contd.)

# Amount transferred from associate companies Rs. 5.73 lakhs (previous year Rs.4.22 lakhs)

* The gratuity liability in respect of P&YE division of the Company is determined based on premiums charged by LIC under the group gratuity scheme. Expenses recognised in the period as disclosed above excludes Rs.6.99 lakhs (previous year Rs. 4.18 lakhs) contributions made by P& YE division to LIC. Amount recognised in the balance sheet as disclosed above excludes Rs.2.13 lakhs (previous year Rs. 1.53 lakhs) pertaining to P & YE division. Disclosures pursuant to AS - 15 (revised 2005) have not been made in respect of the Post retirement Gratuity plan of P&YE division as details have not been furnished by LIC to the company and the amounts are not expected to be material.

The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Special Deposits. The long term estimate of the expected rate of return on the fund assets have been arrived at based on the asset allocation and prevailing yield rates on these asset classes. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching Government Bonds.

Disclosures pursuant to AS - 15 (revised 2005) have not been made in respect of Farewell Gifts and Post Retirement Medical Benefits of ex-employees as the amounts are not expected to be material.

(xii) SEGMENT REPORTING :

Notes :

1. Pursuant to the ‘Accounting Standard on Segment Reporting (AS-17) notified by the Companies (Accounting Standard) Rules 2006, the Company has considered`business segment as primary segment for disclosure. The Company has identified business segments mentioned below as primary segments :

(i) Products & Services

(ii) Projects & Services

There is no significant difference in the business conditions prevailing in various states of India, where the Company has its operation.

Revenue from sales to external customers outside India is less than 10% of the Companys total revenue. Hence, geographical segment disclosures are not considered necessary.

2. Unallocated corporate expenditure includes common service expenses. Unallocable income includes primarily dividend income from investments.

3. Unallocated assets includes investments.

4. Inter-segment revenue are at market driven agreed price.

(xiii) RELATED PARTY DISCLOSURES :

Information relating to Related Party Transactions as per Accounting Standard 18 notified by the Companies (Accounting Standards) Rules, 2006.

A) List of related Parties and Relationship

Party Relationship

a) TRF Singapore Pte Ltd. Subsidiary

YORK Transport Equipment (Asia) Pte Ltd.

YORK Transport Equipment Pty Ltd.

YORK Sales (Thailand) Co. Ltd Subsidiary - The YTE Transport Equipment (SA) (Pty) Limited Ownership of which

YORK Transport Equipment (Malaysia) Sdn Bhd is directly or

Rednet Pte Ltd. indirectly through

PT YORK Engineering subsidiary (ies)

Eadda Pte Ltd

YTE Special Products Pte Ltd

Qingdao YTE Special Products Co. Ltd.

YORK Transport Equipment India Pvt. Ltd.

Dutch Lanka Trailer Manufacturers Limited #

Dutch Lanka Engineering Pvt. Ltd. #

Dutch Lanka Trailers LLC # # w.e.f. August 1, 2009

b) Adithya Automotive Application Pvt. Ltd * Subsidiary * w.e.f. June 1, 2009

c) Tata Steel Limited Associate - Tata Steel holds 34.77% of the voting powers of the Company

d) Key Management Personnel

Mr. Sudhir Deoras Managing Director

Mr. Ramesh Chander Nandrajog Executive Director till 31.07.2009

B) Related Party Transaction

C) The Company does not have any transactions that needs to be reported under clause 32 of the Listing Agreement.

(xiv) DEFERRED TAX (arising out of timing differences)

(xv) Sundry creditors include dues to parties covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at March 31,2010 (Schedule 11 - Current liabilities) is as under.

(xvi)The Company has not hedged its foreign currency exposures. The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below :

(xvii) Figures for the previous year have been regrouped and restated wherever necessary.

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