TRF Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on May 31, 2021.

2. The Company has incurred loss after tax of Rs 6,796.00 lakhs during the year ended March 31, 2021 ( March 31, 2020 Rs 13,263.91 lakhs) and accumulated losses as on that date amounting to Rs 65,410.85 lakhs (March 31, 2020 Rs 58,806.63 lakhs), has eroded the net worth of the company. The company expects to generate cash flow from improvements in operations, increased business from the promoter, increased efficiencies from the project activities, proceeds from restructuring of its subsidiaries, facilities from banks as required and necessary financial support from the Promoter, if required, which will be sufficient to meet future obligation of the company. Accordingly, these financial statements have been prepared on a going concern basis.

3. Revenue from construction contracts are recognized on percentage completion method. The estimated cost to complete the contracts is arrived at based on technical data, forecast, assumptions and contingencies and are based on the current market price or firm commitments, as applicable. Such estimates/assumptions are subject to variations and completion of the projects within the estimated time. The management has implemented necessary steps and strengthened the internal controls around the estimation process and also made reasonable estimation of the time to complete the said projects and expects that such variation may not be significant

4. The Company had submitted an application to RBI in 2013 for capitalisation of corporate guarantee fee and interest on loan receivable from TRF Singapore Pte. Ltd. The same was approved by RBI vide letter dated September 11. 2018 subject to compounding for non-compliance with the relevant Regulation. Further, in the said letter RBI also directed the Company to unwind its FDI in the joint venture through its foreign step-down subsidiary within a specific time period and apply for compounding for both the above stated matters. During the quarter ending December 31. 2020, the Group has divested its entire stake in the said joint venture and the Company has communicated the same to RBI. Subsequently, RBI has communicated additional contraventions pertaining to earlier years on certain matters including divestment of one of its subsidiary (disposed off in 2018) and other procedural matters. The Company submitted a compounding application on voluntary basis on February 8, 2021 to the RBI.

RBI vide its email dated May 07. 2021 intimated that the compounding process can be taken forward only after all the administrative actions in respect of the contraventions are completed. Accordingly, the compounding application has been returned by RBI with an advice to the Company to submit a fresh compounding application on receipt of the memorandum of compounding from RBI.

5. During the year TRF Singapore Pte. Ltd. has exercised a scheme of reduction of its share capital and repatriated the proceeds to the Company. This has resulted in the reduction in the carrying value of the subsidiary's investment and a gain of Rs. 828.66 Lakhs towards exchange fluctuation. Further the company has also recognized an impairment charge of Rs. 690.99 Lakhs in the carrying value of investments in its subsidiary. The aforesaid items has been disclosed as exceptional item.
6. The Company has considered the possible effects that may result from COVID-19 in the preparation of these financial results including business operations, liquidity position and cash flow. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of COVID-19. the Company has. at the date of approval of the financial results, used internal and external sources of information and expects that the carrying amount of the assets will be recovered. The impact of COVID-19 on the Company’s financial results may differ from that estimated as at the date of approval. The Company will continue to monitor the impact of COVID-19 and any material changes to future economic conditions.

7. Figures for the quarter ended March 31, 2021 and March 31, 2020 represent the difference between the audited figures in respect of the full financial year and the published figures of nine months ended December 31. 2020 and December 31. 2019 respectively.

8. Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, where necessary.

Alok Krishna
Managing Director