TRF Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on May 23, 2017.
2. The company adopted Indian Accounting Standards ("Ind AS") with effect from April 1, 2016 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles stated therein, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India.
3. A. Reconciliation of the standalone financial results to those reported under previous Generally Accepted Accounting Principles ("IGAAP") are summarised as under: For Table, kindly refer Corporate Announcements on www.bseindia.com.
4. Revenue from contracts are recognised on percentage completion method specified under Ind AS 11 - Constructions Contracts. Total contract costs are ascertained on the basis of contract costs incurred and cost to completion of contracts which is arrived at by the management based on current technical data, forecast and estimate of net expenditure to be incurred in future including overheads, contingencies etc. For determining the expected cost to completion of the contracts, cost of steel, cement and other related items are considered at current market price which is based on fixed cost purchase orders placed or firm commitments received from suppliers / contractors as these purchase orders and future firm commitments are enforceable over the period of the contracts.
5. Trade receivables include retention money which are receivable on the completion of the performance guarantee test aggregating to Rs. 24,903.02 lakhs as at March 31, 2017 (Rs. 25,519.10 lakhs as at March 31, 2016).
6. The Company has incurred loss after tax of Rs. 2,691.10 lakhs during the year ended March 31, 2017 and the accumulated losses as on that date 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 subsidiaries & joint venture, 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.
7. Employee benefits expense for the year ended March 31, 2017 is net of excess provision written back amounting to Rs. 578 lakhs.
8. Other Income for the quarter and year ended March 31, 2017 includes dividend from subsidiaries amounting to Rs. 285.80 lakhs (quarter and year ended March 31 2016, Rs. 886.87 lakhs and Rs. 2,092.87 lakhs respectively).
9. Information on Revenue by geographical segment are not given for standalone results as the revenue from sales to customers outside India is less than 10% of the total revenue.
10. The figures for the quarter ended March 31, 2017, December 31, 2016 and March 31, 2016 represent the difference between the audited figures in respect of the full financial year and the published figures of nine months ended December 31, 2016, six months ended September 30, 2016 and nine months ended December 31, 2015 respectively.