L&T TRANSPORTATION INFRASTRUCTURE LIMITED 18th ANNUAL REPORT 2014-15
Board of Directors Mr. Karthikeyan. T. V Mr. P. G. Suresh Kumar Mr. R. G. Ramachandran Mr. N. Raghavan Dr. Koshy Varghese Company Secretary Mr. Krishnaswamy Srinathan Chief Financial Officer Mr. U. Poovarasan Manager Sreedhar Vasudevan Statutory Auditors M/s. Sharp & Tannan, Chartered Accountants Registered Office Post Box No.979 Mount Poonamallee Road Manapakkam CHENNAI – 600 089
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
BOARD’S REPORT The Directors of your Company are pleased to present their Report and the Company’s audited financial statements for the financial year ended March 31, 2015. FINANCIAL RESULTS The Company’s financial performance, for the year ended March 31, 2015 is summarised below: Particulars
Profit / (Loss) Before Depreciation, exceptional and extra ordinary items & Tax Less: Depreciation, amortization and obsolescence Profit /(Loss) ( before exceptional and extraordinary items and tax Add: Exceptional Items Profit / (Loss) before extraordinary items and tax
2014-15
2013-14
v Crore
v Crore
17.34
16.95
2.64
(25.21)
14.70
42.16
0.00
0.00
14.70
42.16
Add: Extraordinary items
0.00
0.00
Profit / (Loss) before tax
14.70
42.16
3.50
17.55
Profit / (Loss) for the period carried to the balance sheet
11.20
24.61
Add: Balance brought forward from previous year
83.56
58.95
Less: Provision for tax
Less : Depreciation charged to retained earnings Balance carried to Balance Sheet
0.06
0.00
94.70
83.56
RESULTS OF OPERATIONS AND THE STATE OF COMPANY’S AFFAIRS The total income for the year (including other income) was v 39.05 Crore as against v 40.87 Crore in the previous year. The reduction is on account of other income which has decreased by v 2.38 Crore. However the Toll collections during the year grew by 2.30% from v 24.29 Crore to v 24.84 Crore.The Company has been rated [ICRA]AA by ICRA Limited, an independent professional investment information and credit rating agency in India. CAPITAL EXPENDITURE: As at March 31, 2015 the gross fixed and intangible assets including leased assets, stood at v 100.48 Crore and the net fixed and intangible assets, including leased assets, at v 76.61 Crore. Capital Expenditure incurred during the year amounted to v 0.04 Crore. DEPOSITS The Company has not accepted deposits from the public and no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND The Company did not have any requirement to transfer funds to Investor Education and Protection Fund during the year under review. SUBSIDIARY/ASSOCIATE/JOINT VENTURE COMPANIES The Company does not have any Subsidiary/Associate/Joint Venture Company. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN OR SECURITY PROVIDED BY THE COMPANY Since the Company is engaged in the business of developing infrastructure facility, the provisions of Section 186 except sub-section (1) are not applicable to the Company. However the details of loans given, investments made and guarantees/securities provided by the Company are given in the Notes to financial statements. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES All the related party transactions were in the ordinary course of business and at arm’s length. All related party transactions (RPT) during the year have been approved in terms of the Companies Act, 2013. The Company will adhere to the RPT Policy of the Holding Company and guidelines thereunder. Details of material contracts or arrangements which are at arm’s length are provided in Annexure II. AMOUNT TRANSFERRED TO RESERVES Appropriation of profits to any specific reserve is not applicable to the Company. DIVIDEND The Board of Directors of your company has not declared any dividend for the year under review.
S-1695
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND DATE OF REPORT No material changes and commitments have occurred affecting the financial position of the Company between the end of the financial year and the date of this report. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS Your company represented its case before the Arbitral Tribunal in connection with the proceedings pertaining to termination notice that was issued by Ministry of Road Transport and Highways (MoRTH) in the financial year 2009 – 10 and for the resolution of other claim disputes. The Arbitral Tribunal comprised of three arbitrators i.e., Mr. R. K. Jain as the Presiding Arbitrator, Mr. Justice E. Padmanabhan and Mr. C. S. Balaramamurthi as other arbitrators. While the first meeting of the Arbitral Tribunal was held on 23rd August, 2011 at New Delhi, the arbitral tribunal pronounced the Award on 12th December, 2014 after a series of hearings wherein termination was unanimously declared as illegal and other disputes were also decided in favour of your company. Apprehending that MoRTH would challenge the Arbitral Award, your company has filed a Caveat Application before the High Court of Delhi. As apprehended, MoRTH has preferred an appeal under Section 9 of the Arbitration and Conciliation Act, 1996 before the High Court of Delhi. The Board of Directors of your company are confident of obtaining a favourable order in this regard going by the merits of the case and by the fact that Arbitral Tribunal’s award is also in favour of your company. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION In view of the nature of activities which are being carried on by the Company, Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014, conservation of energy and technology absorption does not apply to the Company. FOREIGN EXCHANGE EARNINGS AND OUTGO There were no foreign exchange earnings or outgo during the year. RISK MANAGEMENT POLICY The Risk Management Policy of the Holding Company is applicable to our Company. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit (IA) function is defined in the Internal Audit Charter. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board. The Internal Audit functions are carried out by the M/S Govind and Bala Associates, Chartered accountants. The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company. Based on the report of internal audit function, process owners undertake corrective action, as may be required, in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions, if any are presented to the Audit Committee of the Board. CORPORATE SOCIAL RESPONSIBILITY The provisions pertaining to Corporate Social Responsibility(CSR) as prescribed under the Companies Act, 2013 are applicable to your Company and the details of CSR expenditure is enclosed as Annexure III to this Report. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (“KMP”) APPOINTED/RESIGNED DURING THE YEAR CHANGES IN DIRECTORS AND KMP Mr. Karthikeyan.T.V, Director, who retires by rotation at this Annual General Meeting, being eligible, is offering himself for re-appointment. Mr. P. G. Suresh Kumar has been appointed as Additional Director of the Company on 27th March, 2015. Mr. N. Raghavan has been appointed as Independent Director for a term of five years with effect from 30th March, 2015. Dr. Koshy Varghese has been appointed as Independent Director of the Company for a term of five years with effect from 30th March, 2015. Mr. B.Ramakrishnan resigned as Director of the Company on 24th February, 2015. The Directors record their sincere appreciation and deep gratitude for the invaluable contribution made by him towards the development of the Company during his tenure as Director. Mr. J. Subramanian resigned as Director of the Company on 27th March, 2015. The Directors record their sincere appreciation and deep gratitude for the invaluable contribution made by him towards the development of the Company during his tenure as Director. Mr. U. Pooovarasan has been appointed as Chief Financial Officer (CFO) of the Company on 28th October, 2014 in terms of Section 203 of the Companies Act, 2013. Mr. Sreedhar Vasudevan has been appointed as Manager of the Company on 24th February, 2015 in term of section 196 and 203 of Companies Act, 2013.
S-1696
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED The Board of Directors of the Company as on March 31, 2015 are as follows: Sr. No.
Name
Designation
1
Mr. Karthikeyan. T.V
Director
2
Mr. R. Chandrasekaran
Director
3
Mr. P. G. Suresh Kumar
Additional Director
4
Dr. Koshy Varghese
Independent Director
5
Mr. N. Raghavan
Independent Director
The Key Managerial Personnel (KMP) of the Company as on March 31, 2015 are as given below: Sr. No.
Name
Designation
1
Mr. Sreedhar Vasudevan
Manager
2
Mr. K. Srinathan
Company Secretary
3
Mr. U. Poovarasan
Chief Financial Officer
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS The Meetings of the Board are held at regular intervals with a time gap of not more than 120 days between two consecutive Meetings. Additional Meetings of the Board of Directors are held as per business requirement. During the year, five Board Meetings were held. The details of the Board meetings conducted during the year under review are given below: Date
Board Strength
No of Directors Present
6th May, 2014
4
4
11th July, 2014
4
3
28th October, 2014
4
3
24th February, 2015
3
3
27th March, 2015
3
3
The Agenda of the Meetings are circulated in advance to the Directors. Minutes of the Meetings of the Board of Directors are drafted and circulated amongst the Members of the Board for their perusal. AUDIT COMMITTEE The Company has constituted an Audit Committee in terms of the requirements of the Companies Act, 2013 comprising of Dr. Koshy Varghese, Mr. N. Raghavan and Mr. Karthikeyan. T. V as the members of the Committee. During the year, four audit committee meetings were held. The details of the meetings conducted during the year under review are given below: Date
Strength of the Committee
No. of members present
6th May, 2014
4
4
11th July, 2014
4
3
28th October, 2014
4
3
24th February, 2015
3
3
In accordance with the requirements of the Companies Act, 2013, the Company has established a Vigil Mechanism framework for Directors and employees to report genuine concerns. The Compliance Officer of the Holding Company is the co-ordinator for the Vigil Mechanism and is responsible for receiving, validating, investigating and reporting to the Audit Committee during the year. The Whistle Blower Policy of the Company meets the requirement of the Vigil Mechanism framework under the Companies Act, 2013. COMPANY’S POLICY ON DIRECTOR APPOINTMENT AND REMUNERATION The Company had constituted the Nomination and Remuneration Committee in accordance with the requirements of the Companies Act, 2013 read with the Rules made thereunder comprising of Dr. Koshy Varghese, Mr. N. Raghavan and Mr. Karthikeyan. T. V as the members of the Committee. The Committee had formulated a policy on Director’s appointment and remuneration including recommendation of remuneration of the KMP and the criteria for determining qualifications, positive attributes and independence of a Director. DECLARATION OF INDEPENDENCE The Company has received a declaration of independence as stipulated under Section 149(7) of the Companies Act, 2013 confirming that he/she is not disqualified from continuing as an Independent Director.
S-1697
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED EXTRACT OF THE ANNUAL RETURN The extract of the annual return in Form No. MGT – 9 is enclosed as Annexure I to this Report. DIRECTORS RESPONSIBILITY STATEMENT The Board of Directors of the Company confirms that: a)
In the preparation of Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.
b)
The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.
c)
The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
d)
The Directors have prepared the Annual Accounts on a going concern basis.
e)
The Directors have laid down an adequate system of internal financial control with respect to reporting on financial statement and the said system is operating effectively.
f)
The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and were operating effectively.
PERFORMANCE EVALUATION OF THE BOARD, ITS COMMITTEES AND DIRECTORS The Company had appointed Independent Directors only on 30th March 2015. Hence, this process is being taken up in this calendar year. DISCLOSURE OF REMUNERATION There are no employees in the company covered by the provisions of the sub rule 2 of rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. AUDITORS AND AUDITORS’ REPORT STATUTORY AUDITORS M/s. Sharp & Tannan, who is currently the statutory auditor, shall hold office until the conclusion of the ensuing Annual General Meeting (“AGM”). The Board recommends the appointment of M/s. Sharp & Tannan, Chartered Accountants, Chennai as Auditors of the Company from the conclusion of the ensuing AGM until the conclusion of the 20th AGM. Certificate from the said audit firm has been received to the effect that they are eligible to act as Auditors of the Company under Section 141 of the Companies Act, 2013. The Auditors’ Report for the financial year 2014-15 is unqualified. The Notes to the accounts referred to in the Auditors’ Report are self-explanatory and do not call for any further clarifications under section 134(3)(f) of the Companies Act, 2013. SECRETARIAL AUDITORS Your company is not attracted by the provisions of section 204 of the Companies act, 2013 pertaining to secretarial audit. ACKNOWLEDGEMENT Your Directors take this opportunity to thank the employees, Financial Institutions, Banks, NHAI, Central and State Government authorities, Regulatory authorities, and all the various stakeholders for their continued co-operation and support to the Company. For and on behalf of the Board
Place : Chennai Date : April 28, 2015
S-1698
TRANSPORTATION INFRASTRUCTURE LIMITED
KARTHIKEYAN. T.V Director DIN: 01367727
P. G. SURESH KUMAR Director DIN: 07124883
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
ANNEXURE I FORM NO. MGT-9 EXTRACT OF ANNUAL RETURN AS ON THE FINANCIAL YEAR ENDED ON 31.03.2015 [Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014] I.
II.
REGISTRATION AND OTHER DETAILS: CIN
U45203TN1997PLC039102
Registration Date
24/09/1997
Name of the Company
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
Category / Sub-Category of the Company
Company Limited by shares/Indian Non-government Company
Address of the Registered office and contact details
P.O.BOX.979, MOUNT POONAMALLEE ROAD, MANAPAKKAM, CHENNAI- 600089
Whether listed company Yes / No
No
Name, Address and Contact details of Registrar and Transfer Agent, if any
Sharepro Services India Pvt. Ltd., 13 AB, Samitha Warehousing Complex,2nd Floor, Saki Naka Telephone Exchange Lane, Sakinaka, Andheri East Mumbai – 400072 (Phone: +91 22 67720329 ) Mobile: +919833515383
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10 % or more of the total turnover of the company shall be stated:Sl. No. 1
III.
IV.
Name and Description of main products / services
NIC Code of the Product/ service
% to total turnover of the company
42101
100%
Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian ways, highways, bridges, tunnels and subways
PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES S. No
Name And Address of the Company
CIN/GLN
1
L&T Infrastructure Development Projects Limited
U65993TN2001PLC046691
Holding/ Subsidiary /Associate
% of Shares held
Applicable Section
Holding
73.76%
2(46)
SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) i)
Category-wise Share Holding Category of Shareholders
A. Promoters 1) Indian a) Individual/HUF b) Central Govt c) State Govt (s) d) Bodies Corp. e) Banks / FI f) Any Other…. Sub-total (A) (1):2) Foreign a) NRIs - Individuals b) Other - Individuals c) Bodies Corp. d) Banks / FI e) Any Other…. Sub-total (A) (2):Total shareholding of Promoter (A) = (A)(1)+(A)(2)
No. of Shares held at the beginning of the year
No. of Shares held at the end of the year
% Change during the year
Demat
Physical
Total
% of Total Shares
Demat
Physical
Total
% of Total Shares
– – – 41399994 –
– – – 6* –
– – – 41400000 –
– – – 100 –
– – – 41399994 –
– – – 6* –
– – – 41400000 –
– – – 100 –
– – – – –
41399994
6*
41400000
100
41399994
6*
41400000
100
–
–
–
–
–
–
–
–
–
–
– –
– –
– –
– –
– –
– –
– –
– –
– –
– 41399994
– 6*
– 41400000
– 100
– 41399994
– 6*
– 41400000
– 100
– –
S-1699
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED Category of Shareholders
No. of Shares held at the beginning of the year
No. of Shares held at the end of the year
% Change during the year
Demat
Physical
Total
% of Total Shares
Demat
Physical
Total
% of Total Shares
–
–
–
–
–
–
–
–
–
Indian
–
–
–
–
–
–
–
–
–
ii) Overseas
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Individual shareholders holding nominal share capital upto v 1 lakh
–
–
–
–
–
–
–
–
–
ii) Individual shareholders holding nominal share capital in excess of R 1 lakh
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Sub-total (B)(2):-
–
–
–
–
–
–
–
–
–
Total Public Shareholding (B) = (B)(1)+ (B)(2)
–
–
–
–
–
–
–
–
–
C. Shares held by Custodian for GDRs & ADRs
–
–
–
–
–
–
–
–
–
41399994
6*
41400000
100
41399994
6*
41400000
100
–
B. Public Shareholding 1. Institutions a) Mutual Funds b) Banks / FI c) Central Govt d) State Govt(s) e) Venture Capital Funds f)
Insurance Companies
g) FIIs h) Foreign Venture Capital Funds i)
Others (specify)
Sub-total (B)(1):2. Non-Institutions a) Bodies Corp. i)
b) Individuals i)
c) Others (specify)
Grand Total (A+B+C)
* Shares are held by nominees of Larsen & Toubro Limited. (ii) Shareholding of Promoters Sl No
Shareholders Name
Shareholding at the beginning of the year
Shareholding at the end of the year
No. of Shares
% of total Shares of the company
% of Shares Pledged / encumbered to total shares
No. of Share
% of total Shares of the company
% of Shares Pledged / encumbered to total shares
% change in Shareholding during the year
1
L&T Infrastructure Development Projects Limited
30536000
73.76%
0.00%
30536000
73.76%
0.00%
0.00%
2
Larsen & Toubro Limited (with nominees)
10864000
26.24%
0.00%
10864000
26.24%
0.00%
0.00%
Total
41400000
100%
0.00%
41400000
100%
0.00%
0.00%
S-1700
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED (iii) Change in Promoters’ Shareholding (please specify, if there is no change) Sl. No.
Shareholding at the beginning of the year
1
At the beginning of the year
2
Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase /decrease (e.g. allotment / transfer / bonus/sweat equity etc):
3
At the End of the year
Cumulative Shareholding during the year
No. of shares
% of total shares of the company
No. of shares
% of total shares of the company
41400000
100%
41400000
100%
–
–
–
–
41400000
100%
41400000
100%
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): Sl. No.
For Each of the Top 10 Shareholders
Shareholding at the beginning of the year
1 2
3
Cumulative Shareholding during the year
No. of shares
% of total shares of the company
No. of shares
% of total shares of the Company
At the beginning of the year
–
–
–
–
Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc):
–
–
–
–
At the End of the year (or on the date of separation, if separated during the year)
–
–
–
–
(v) Shareholding of Directors and Key Managerial Personnel:
V.
Sl. No.
For Each of the Directors and KMP
Shareholding at the beginning of the year
1 2
3
Cumulative Shareholding during the year
No. of shares
% of total shares of the company
No. of shares
% of total shares of the Company
At the beginning of the year
–
–
–
–
Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc):
–
–
–
–
At the End of the year (or on the date of separation, if separated during the year)
–
–
–
–
INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment: (Amount in v Crore) Particulars
Secured Loans excluding deposits
Unsecured Loans
Deposits
Total Indebtedness
Indebtedness at the beginning of the financial year i) Principal Amount
109.85
–
–
109.85
ii) Interest due but not paid
–
–
–
–
iii) Interest accrued but not due
–
–
–
–
109.85
–
–
109.85
Total (i+ii+iii) Change in Indebtedness during the financial year Addition
–
–
–
–
Reduction
15.75
–
–
15.75
Net Change
15.75
–
–
15.75
Indebtedness at the end of the financial year i) Principal Amount
94.10
–
–
94.10
ii) Interest due but not paid
–
–
–
–
iii) Interest accrued but not due
–
–
–
–
94.10
–
–
94.10
Total (i+ii+iii)
S-1701
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED VI.
REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A.
Remuneration to Managing Director, Whole-time Directors and/or Manager: v Crore Sl. no.
Particulars of Remuneration
1.
Gross salary
Name of MD/WTD/Manager
Total Amount
Manager: Mr. Sreedhar Vasudevan
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961
0.05
0.05
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
–
–
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
–
–
2.
Stock Option
–
–
3.
Sweat Equity
–
–
Commission
–
–
4.
- as % of profit - others, specify… 5.
B.
–
–
Total (A)
Others, please specify
0.05
0.05
Ceiling as per the Act
0.20
0.20
Remuneration to other directors: v Sl. no.
Particulars of Remuneration
Name of Directors
Total Amount
Mr. N. Raghavan
Dr. Koshy Varghese
Others, please specify
Nil
Nil
Total (1)
Nil
Nil
Mr. Karthikeyan T V
Mr. P. G. Suresh Kumar
Mr. R Chandrasekaran
Nil
Nil
Nil
Independent Directors Fee for attending board / committee meetings Commission Nil
4. Other Non-Executive Directors Fee for attending board / committee meetings Commission Others, please specify
Nil
Total (2)
Nil
Nil
Nil
Nil
Total (B)=(1+2)
Nil
Nil
Nil
Nil
–
–
–
–
Total Managerial Remuneration Overall Ceiling as per the Act
S-1702
TRANSPORTATION INFRASTRUCTURE LIMITED
Sitting fee not more than v 1 lakh per meeting of Board or Committee. Remuneration v 15 lakhs per annum
L&T TRANSPORTATION INFRASTRUCTURE LIMITED C.
Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD Sl. no.
1.
Particulars of Remuneration
Key Managerial Personnel CEO
Gross salary
Company Secretary
CFO
Total
Mr. K. Srinathan
Mr. U. Poovarasan
NA
NIL
NIL
NIL
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income tax Act, 1961 2.
Stock Option
–
–
–
–
3.
Sweat Equity
–
–
–
–
Commission
–
–
–
–
4.
- as % of profit - others, specify… 5.
Others, please Specify Total
–
–
–
–
NA
NIL
NIL
NIL
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Type
Section of the Companies Act
Brief Description
Details of Penalty / Punishment/ Compounding fees imposed
Authority [RD / NCLT / COURT]
Appeal made, if any (give Details)
Penalty
NIL
NIL
NIL
NIL
NIL
Punishment
NIL
NIL
NIL
NIL
NIL
Compounding
NIL
NIL
NIL
NIL
NIL
Penalty
NIL
NIL
NIL
NIL
NIL
Punishment
NIL
NIL
NIL
NIL
NIL
Compounding
NIL
NIL
NIL
NIL
NIL
Penalty
NIL
NIL
NIL
NIL
NIL
Punishment
NIL
NIL
NIL
NIL
NIL
Compounding
NIL
NIL
NIL
NIL
NIL
A. COMPANY
B. DIRECTORS
C. OTHER OFFICERS IN DEFAULT
For and on behalf of the Board
Place : Chennai Date : April 28, 2015
KARTHIKEYAN. T.V Director DIN: 01367727
P. G. SURESH KUMAR Director DIN: 07124883
S-1703
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
ANNEXURE II FORM NO. AOC.2 Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto (Pursuant to clause (h) of sub-section (3 of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) 1.
Details of contracts or arrangements or transactions not at arm’s length basis The Company has not entered into such transactions during the year.
2.
Details of material contracts or arrangement or transactions at arm’s length basis Name of the related party
Nature of relationship
Nature of contract/ arrangement/ transactions
Duration of contract/ arrangement/ transactions
Salient terms of contract/ arrangement/ transactions
Amount paid as advance
Nil
Nil
Nil
Nil
Nil
Nil
Date(s) of approval by the Board, if any – 28th April, 2015 For and on behalf of the Board
Place : Chennai Date : April 28, 2015
S-1704
TRANSPORTATION INFRASTRUCTURE LIMITED
KARTHIKEYAN. T.V Director DIN: 01367727
P. G. SURESH KUMAR Director DIN: 07124883
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
ANNEXURE III ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES The Company has constituted a Corporate Social Responsibility (“CSR”) committee of directors comprising of Mr. Karthikeyan T V, Mr. R Chandrasekaran and Mr. N Raghavan as the Members. The Company has adopted CSR policy on 24th February, 2015 and the details of the various projects and programmes to be undertaken by the Company as a part of its CSR framework are prescribed in the said policy. The amount to be spent during the current financial year and the manner in which it was spent towards CSR are given below: Particulars
Amount in v crore
Average Net Profit of the Company for the last three financial years
23.26
Prescribed CSR expenditure
0.47
Amount unspent
–
DETAILS OF AMOUNT SPENT ON CSR ACTIVITIES DURING THE FINANCIAL YEAR 2014-15 Amount in v crore Sr. no
1
CSR project/ activity identified
Sector in which the Project is covered
Projects/ Programs 1) Local area or other 2) specify the State and district where projects or Programs was undertaken
Amount outlay (budget) project / program wise
Amount spent on the project / programs Subheads: 1) Direct expenditure on projects or programs 2) Overheads
Cumulative spend upto the reporting period
Amount spent (Direct / implementing agency)
Contribution to Swachh Bharat Kosh
Contribution to Central Government
India
0.46
0.46
0.46 Implementing Agency – Swachh Bharat Kosh
Prime Minister’s Relief Fund
Contribution to Central Government
India
0.01
0.01
0.01 Implementing Agency- Prime Minister’s Relief Fund
0.47
0.47
0.47
Total
The CSR committee confirms that the implementation and monitoring of the CSR policy is in compliance with the CSR objectives and policy of the Company. For and on behalf of the Board
Place : Chennai Date : April 28, 2015
KARTHIKEYAN. T.V Director DIN: 01367727
P. G. SURESH KUMAR Director DIN: 07124883
S-1705
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF L&T TRANSPORTATION INFRASTRUCTURELIMITED Report on the Financial Statements We have audited the accompanying financial statements of L&T TRANSPORTATION INFRASTRUCTURE LIMITED (“the Company”), which comprise the Balance Sheetas at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2015, and its profit and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2015 (the ‘Order’) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by Section 143 (3)of the Act,we report that: (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books (c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. (d) In our opinion,the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts)Rules,2014. (e) On the basis of the written representations received from the directors as on 31 March 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2015 from being appointed as a director in terms of Section 164(2) of the Act. (f) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer Note P(12) to the financial statements. ii. The Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. SHARP & TANNAN Chartered Accountants ICAI registration no. 003792S Place : Chennai Date : May 28, 2015
S-1706
TRANSPORTATION INFRASTRUCTURE LIMITED
P. RAJESH KUMAR Partner Membership No. 225366
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT With reference to the Annexure referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of the Independent Auditor’s Report to the members of L&T Transportation Infrastructure Limited on the financial statements for the year ended 31 March 2015, we report that: (i)
(a)
The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year, the frequency of which is reasonable, having regard to the size of the Company and nature of its assets; and no material discrepancies were noticed on such verification. (ii)
The Company does not have any inventory in its books and hence reporting under Paragraph 3 (ii) (a), (b) and (c) of the Order relating to inventories does not arise.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Act and hence reporting under Paragraph 3 (iii) (a) and (b) of the Order does not arise. (iv) In our opinion, and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the Company and nature of its business for purchase of fixed assets and sale of services. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in the aforesaid internal control system. (v)
The Company has not accepted any deposits from the public and therefore reporting on compliance with the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder does not arise.
(vi) The maintenance of cost records under Section 148(1) of the Companies Act, 2013 is not applicable for the Company as it does not meet the prescribed threshold limit of turnover as specified under Rule 3 of the Companies (Cost Records and Audit) Rules 2014. Accordingly, reporting under Paragraph 3 (vi) of the Order does not arise. (vii) a)
According to the information and explanations given to us, and the records of the Company examined by us, in our opinion, the Company is regular in depositing undisputed statutory dues including provident fund, service tax and other statutory dues except that there weredelays in remittance of advance incometax during the year. According to the information and explanations given to us there were no undisputed amounts payable in respect of provident fund, employees’ state insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues outstanding as at 31March 2015 for a period of more than six months from the date they became payable.
b)
According to the information and explanations given to us and the records of the Company examined by us, there are noincome tax, sales tax, service tax, duty of customs, duty of excise, value added tax and cess as at 31 March 2015 which have not been deposited on account of a dispute, except the following:
Name of the Statute
Nature of the disputed dues
Amount
Interest
136,862
r The Income Tax Act, 1961
c)
Period to which the amount relates
Forum where disputes are pending
AY 2011-12
Assessing officer (Rectification petition)
According to the information and explanations given to us, there is no amount required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 and the rules made thereunder.
(viii) The Company has no accumulated losses at the end of the financial year and has not incurred cash losses in the current or the immediately preceding financial year. (ix) The Company has not defaulted in repayment of dues to banks during the year. The Company does not have any outstanding loans from financial institutionsor any outstanding debentures during the year. (x)
According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions and hence reporting under Paragraph 3 (x) of the Order does not arise.
(xi) In our opinion and according to the information and explanations given to us and on an overall basis the term loans have been applied for the purpose for which they were obtained. (xii) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instances of fraud by the Company, or material frauds on the Company, noticed or reported during the year, nor we have been informed of such cases by the management. SHARP & TANNAN Chartered Accountants ICAI registration no. 003792S Place : Chennai Date : May 28, 2015
P. RAJESH KUMAR Partner Membership No. 225366
S-1707
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
BALANCE SHEET AS AT MARCH 31, 2015 Note
As at 31.03.2015 r
As at 31.03.2014 r
r
r
EQUITY AND LIABILITIES: Shareholders' funds Share capital
A
414,000,000
414,000,000
Reserves and surplus
B
949,040,019
837,641,140 1,363,040,019
1,251,641,140
Non-current liabilities Long-term borrowings
C(I)
776,032,421
941,032,421
Deferred tax liabilities (net)
P(9)
188,276,191
185,452,229
Long-term provisions
C(II)
38,597,000
18,597,000 1,002,905,612
1,145,081,650
Current liabilities Trade payables
D(I)
27,417,534
17,831,769
Other current liabilities
D(II)
168,761,647
160,110,740
Short-term provisions
D(III)
6,042,412
TOTAL
59,168,048 202,221,593
237,110,557
2,568,167,224
2,633,833,347
ASSETS Non-current assets Fixed assets Tangible assets
E(I)
3,792,093
6,776,535
Intangible assets
E(II)
762,357,797
786,400,468
Long-term loans and advances
F
766,149,890
793,177,003
677,734
2,639,505
Current assets Current investments
G(I)
1,470,160,347
Trade receivables
G(II)
–
62,335
Cash and bank balances
G(III)
330,046,822
769,873,564
Short-term loans and advances
G(IV)
1,132,431
986,056,835
TOTAL CONTINGENT LIABILITIES
1,801,339,600
1,838,016,839
2,568,167,224
2,633,833,347
H
COMMITMENTS
I
OTHER NOTES FORMING PART OF ACCOUNTS
P
SIGNIFICANT ACCOUNTING POLICIES
Q
As per our report attached SHARP & TANNAN Chartered Accountants (Registration No. 003792S) By the hand of P. RAJESH KUMAR Partner Membership No. 225366
82,024,105
For and on behalf of the Board
K. SRINATHAN Company Secretary
Place : Chennai Date : May 28, 2015
S-1708
TRANSPORTATION INFRASTRUCTURE LIMITED
U. POOVARASAN Chief Financial Officer
Place : Chennai Date : April 28, 2015
KARTHIKEYAN T. V. Director DIN: 01367727
R. CHANDRASEKARAN Director DIN: 00746247
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2015 Note
2014-15 e
2013-14 e
e
e
REVENUE Revenue from operations
J
248,480,640
242,922,677
Other income
K
142,019,542
165,808,392
390,500,182
408,731,069
TOTAL REVENUE EXPENSES Operating expenses
L
59,085,865
59,845,885
Employee benefit expenses
M
11,146,822
10,675,851
Finance costs
N
119,488,708
133,050,000
E(I) & E(II)
26,449,144
(252,162,916)
O
27,294,270
35,680,532
TOTAL EXPENSES
243,464,809
(12,910,648)
Profit/(loss) before tax
147,035,373
421,641,717
Depreciation and amortisation Administration and other expenses
Tax expense: Current tax
31,855,000
Income tax - prior years Deferred tax
P(9)
90,358,351
–
142,440
3,155,345
85,008,945
Profit/(loss) after tax Earnings per equity share (Basic and diluted)
P(8)
Face value per equity share OTHER NOTES FORMING PART OF ACCOUNTS
P
SIGNIFICANT ACCOUNTING POLICIES
Q
As per our report attached SHARP & TANNAN Chartered Accountants (Registration No. 003792S) By the hand of P. RAJESH KUMAR Partner Membership No. 225366 Place : Chennai Date : May 28, 2015
35,010,345
175,509,736
112,025,028
246,131,981
2.71
5.95
10.00
10.00
For and on behalf of the Board
K. SRINATHAN Company Secretary
U. POOVARASAN Chief Financial Officer
KARTHIKEYAN T. V. Director DIN: 01367727
R. CHANDRASEKARAN Director DIN: 00746247
Place : Chennai Date : April 28, 2015
S-1709
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2015
A
2014-15 e
2013-14 e
147,035,373
421,641,717
26,449,144 20,000,000 – 119,488,708 (53,104,122) (87,958,920) (2,500)
(252,162,916) 18,597,000 9,447,000 133,050,000 (109,891,611) (55,064,367) (15,498)
Operating profit before working capital changes Adjustments for: (Increase) / decrease in trade receivables (Increase) / decrease in loans and advances Increase / (decrease) in trade and other payables
171,907,683
165,601,325
62,335 (77,596) 11,334,427
(62,335) (806,174) 5,317,356
Net cash generated from/(used in) operating activities Direct taxes paid (net of refunds)
183,226,849 (84,052,185)
170,050,172 (25,460,312)
Net Cash(used in)/generated from Operating Activities
99,174,664
144,589,860
(389,363) 12,300 (9,099,071,165) 7,798,893,843 985,000,000 53,104,122
(33,727) 15,500 (5,469,404,000) 5,692,444,262 65,000,000 112,635,594
Net cash (used in)/generated from investing activities
(262,450,263)
400,657,629
Cash flow from financing activities Repayment of long term borrowings Interest paid
(157,500,000) (119,051,143)
(127,606,710) (132,652,609)
Net cash (used in)/generated from financing activities
(276,551,143)
(260,259,319)
Net increase / (decrease) in cash and cash equivalents (A+B+C) Cash and cash equivalents as at the beginning of the year
(439,826,742) 769,873,564
284,988,170 484,885,394
330,046,822
769,873,564
Net profit / (loss) before tax and extraordinary items Adjustments for: Depreciation and amortisation expense Provision for periodic major maintenance expense Allowance for doubtful debts Interest expense Interest income (Profit)/loss on sale of current investments(net) (Profit)/loss on sale of fixed assets
B
Cash flow from investing activities Purchase of fixed assets Sale of fixed assets Purchase of current investments Sale of current investments Intercorporate deposits refunded (net) Interest received
C
Cash and cash equivalents as at the end of the year Notes: 1. Cash flow statement has been prepared under the ‘Indirect Method’ as set out in the Accounting Standard 3 “Cash flow Statement” as specified in the Companies (Accounting Standards) Rules 2006. 2. Previous year figures are regrouped/reclassified wherever necessary. 3. Cash and cash equivalents consists of cash and bank balances. The components of Cash and cash equivalents are: 1.
2.
Balances with Bank - on current account - on deposit account (maturity less than 3 months) - on deposit account (maturity more than 3 months but less than 12 months) Cash on Hand
As per our report attached SHARP & TANNAN Chartered Accountants (Registration No. 003792S) By the hand of P. RAJESH KUMAR Partner Membership No. 225366 Place : Chennai Date : May 28, 2015
15,201,148 235,108,740 78,250,545 1,486,389
4,766,659 690,424,788 72,298,255 2,383,862
330,046,822
769,873,564
For and on behalf of the Board
K. SRINATHAN Company Secretary
S-1710
TRANSPORTATION INFRASTRUCTURE LIMITED
U. POOVARASAN Chief Financial Officer Place : Chennai Date : April 28, 2015
KARTHIKEYAN T. V. Director DIN: 01367727
R. CHANDRASEKARAN Director DIN: 00746247
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS A
SHARE CAPITAL
(i)
Authorised, issued, subscribed and paid up As at 31.03.2015
As at 31.03.2014
No of Shares
r
No of Shares
e
50,000,000
500,000,000
50,000,000
500,000,000
41,400,000
414,000,000
41,400,000
414,000,000
Authorised: Equity shares of R 10 each Issued, subscribed and fully paid up Equity shares of R 10 each
(ii) Reconciliation of the number of equity shares and share capital issued, subscribed and paid-up: As at 31.03.2015
At the beginning of the year
r
No. of shares
r
41,400,000
414,000,000
41,400,000
414,000,000
–
–
–
–
41,400,000
414,000,000
41,400,000
414,000,000
Issued during the year as fully paid At the end of the year
As at 31.03.2014
No. of shares
(iii) Terms / rights attached to shares The Company has only one class of equity share having a par value of v 10 per share. Each holder of equity shares is entitled to one vote per share. The Company has not issued any securities during the year with the right/option to convert the same into equity shares at a later date. The Company has not reserved any shares for issue under options and contracts/commitments for the sale of shares/disinvestment. The shares issued carry equal rights to dividend declared by the company and no restrictions are attached to any specific shareholder. (iv) Details of Shares held by Holding Company/Ultimate Holding Company/its subsidiaries or associates: Particulars
As at 31.03.2015
As at 31.03.2014
No. of shares
r
No. of shares
r
L&T Infrastructure Development Projects Limited (holding company)
30,536,000
305,360,000
30,536,000
305,360,000
Larsen and Toubro Limited (including shares held along with its nominees)
10,864,000
108,640,000
10,864,000
108,640,000
41,400,000
414,000,000
41,400,000
414,000,000
(v) Details of Shareholders holding more than 5% shares in the company: L&T Infrastructure Development Projects Limited (holding company)
30,536,000
73.76
30,536,000
73.76
Larsen and Toubro Limited (including shares held along with its nominees)
10,864,000
26.24
10,864,000
26.24
(vi) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL (vii) Calls unpaid : NIL; Forfeited Shares : NIL
S-1711
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) As at 31.03.2015 r B
As at 31.03.2014 r
r
r
RESERVES AND SURPLUS General reserve: As per last Balance Sheet
2,029,771
2,029,771
Surplus/(Deficit) as per Statement of Profit and loss: As per last Balance Sheet
835,611,369
589,479,388
Add: Profit/(Loss) for the year
112,025,028
246,131,981
(626,149)
–
Less: Depreciation transferred to Retained earnings (net of deferred tax of r 331,383/- )
947,010,248
835,611,369
949,040,019
837,641,140
UCO Bank
387,969,460
470,469,460
United Bank of India
388,062,961
470,562,961
TOTAL
776,032,421
941,032,421
TOTAL C(I) LONG TERM BORROWINGS Secured term loans from banks (Refer notes below)
C (I) (A) DETAILS OF TERM LOANS Particulars
Rate of Interest (weighted average)
Terms of Repayment
As at March 31, 2015 UCO Bank
Base rate + spread
United Bank of India
Base rate + spread
Repayable in 162 monthly instalments from October 2006 to March 2020 at specified amounts.
C (I) (B) NATURE OF SECURITY i) Mortgage of title deed of immovable property being flat located at Coimbatore. ii)
Hypothecation of movable properties, Assignment of project documents, Insurance policies, Investments, Receivables and general assets.
C (I) (C) PRESENTATION OF TERM LOANS IN THE BALANCE SHEET IS AS FOLLOWS: As at 31.03.2015
As at 31.03.2014
(i) Long term borrowings
776,032,421
941,032,421
(ii) Current maturities of long term borrowings
165,000,000
157,500,000
TOTAL
941,032,421
1,098,532,421
As at 31.03.2015 r
As at 31.03.2014 r
r
r
C(II) LONG TERM PROVISIONS Provision for periodic major maintenance expense
38,597,000
18,597,000
38,597,000
18,597,000
(Refer note P(11)) TOTAL
S-1712
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) As at 31.03.2015 r
As at 31.03.2014 r
r
r
D (I) TRADE PAYABLES Due to: Related parties Holding Company
10,114,156
202,888
943,949
1,778,805
Others
16,359,429
15,850,076
TOTAL
27,417,534
17,831,769
Ultimate Holding Company
D(I)(A) There have been no transactions during the year (previous year: v Nil) with Micro and small enterprises covered under the Micro, Small and Medium enterprises Development (MSMED) Act, 2006. Hence reporting details of principal and interest paid/outstanding does not arise. As at 31.03.2015 r
As at 31.03.2014 r
r
r
D(II) OTHER CURRENT LIABILITIES Due to: Related parties Holding Company Security deposits received Current maturities of long term borrowing (Refer note C(I)(c))
200,000
-
1,058,800
918,800
165,000,000
157,500,000
Statutory liabilities
1,227,000
687,355
Others
1,275,847
1,004,585
TOTAL
168,761,647
160,110,740
D(III) SHORT TERM PROVISIONS Provisions for : Employee benefits Gratuity (Refer note P(3)(ii))
1,727,788
1,232,290
Compensated absences (Refer note P(3)(ii))
1,828,941
1,289,119 3,556,729
2,521,409
Current taxes (net of payments made R 293,69,317; previous year R 3,37,11,712)
2,485,683
56,646,639
TOTAL
6,042,412
59,168,048
S-1713
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) E (I) TANGIBLE ASSETS Particular
Cost As at 01.04.2014
Book Value
Depreciation
Additions
Deletions
As at 31.03.2015
Up to 31.03.2014
For the period
Transfer to Retained earnings
Deductions
Up to 31.03.2015
As at 31.03.2015
As at 31.03.2014
607,315
Owned Land (Refer note E(I)(a)) Building Plant and Equipment Computers, laptops and printers
607,315
–
–
607,315
–
–
–
–
607,315
1,217,079
–
–
1,217,079
318,217
25,682
–
343,899
873,180
898,862
12,214,408
–
–
12,214,408
8,461,950
1,886,160
–
10,467,403
1,747,005
3,752,458 195,286
119,293
4,587,537
351,930
45,000
4,894,467
4,392,251
177,397
35,200
4,534,448
360,019
Office equipment
825,564
37,433
–
862,997
825,551
7,044
–
832,595
30,402
13
Furniture and fixtures
428,746
–
–
428,746
404,549
6,155
–
410,704
18,042
24,197
–
1,355,037
114,959
357,249
–
3,239,392
41,165
898,471 42,684
Vehicles
1,469,996
–
–
1,469,996
1,112,747
242,290
Electrical installations
3,280,557
–
–
3,280,557
2,382,086
61,745
Air conditioning and Refrigeration
795,561
178,376
–
–
178,376
135,692
–
42,678
–
178,370
6
Total
24,809,578
389,363
45,000
25,153,941
18,033,043
2,406,473
957,532
35,200
21,361,848
3,792,093
Previous year
24,894,929
33,727
119,078
24,809,578
15,468,530
2,683,589
119,076
18,033,043
–
6,776,535
E (I) Land represents 920 sq. ft. of undivided portion of land in the flat at Coimbatore registered in the name of the Company. E (II) INTANGIBLE ASSETS Particulars
Cost
Amortisation
As at 01.04.2014
Additions
Deductions
As at 31.03.2015
Up to 31.03.2014
For the period
979,689,743
–
–
979,689,743
193,289,275
Total
979,689,743
–
–
979,689,743
Previous year
979,689,743
–
–
979,689,743
Toll collection rights (Refer notes below)
Transfer to Retained earnings
Book Value Deductions
Up to 31.03.2015
As at 31.03.2015
As at 31.03.2014
24,042,671
–
217,331,946
762,357,797
786,400,468
193,289,275
24,042,671
–
217,331,946
762,357,797
448,135,780
(254,846,505)
–
193,289,275
–
786,400,468
Notes: (a)
Toll collection rights represent the bypass road and a bridge over river Noyyal (known as Athupalam bridge) constructed on land provided by Government of Tamilnadu under Concession Agreement dated October 3, 1997 with Ministry of Surface Transport, Government of India and Department of Highways, Government of Tamilnadu.
(b) Effective April 1, 2014, the Company has revised the useful life of fixed assets based on schedule II to the Companies Act 2013 for the purposes of providing depreciation on fixed assets. Accordingly, the carrying amount of the assets as on April 1, 2014 has been depreciated over the remaining revised useful life of the fixed assets. Consequently the depreciation for the year ended March 31, 2015 is higher and the profit before tax is lower to the extent of e 33,666/-. Further an amount of e 626,149/- (net of tax of e 331,383/-) representing the carrying amount of fixed assets whose useful life has expired as at April 1, 2014 has been charged to the opening balance of retained earnings as on April 1, 2014 as required in Schedule II to the Companies Act, 2013.
F
As at 31.03.2015
As at 31.03.2014
e
e
LONG TERM LOANS AND ADVANCES Security deposits Unsecured, considered good
341,480
339,480
Income tax receivable of previous years
336,254
2,300,025
TOTAL
677,734
2,639,505
Investment in mutual funds - Quoted
1,470,160,347
82,024,105
TOTAL
1,470,160,347
82,024,105
G(I) CURRENT INVESTMENTS
S-1714
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) Other particulars in respect of current investment mentioned in G (1) are as follows: Particulars
Face value per unit
No of Units as 31.03.2015
As at March 31.03.2015
As at March 31.03.2014
e
Nos.
e
e
SBI Premier Liquid Fund - Regular Plan Growth
1,000
47,325.90
103,820,000
–
L&T Liquid Growth Fund
1,000
80,061.06
149,906,343
44,190,000
Religare Invesco Liquid Fund - Growth Plan
1,000
9,214.01
17,505,000
–
Reliance Liquidity Fund - Growth Plan Growth Option
1,000
187,382.65
391,749,546
–
IDFC Cash Fund Growth (Regular plan)
1,000
73,606.57
122,134,972
37,834,105
UTI-Liquid Cash Plan- Institutional - Growth
1,000
147,629.74
335,044,486
–
BOI AXA Liquid Fund - Regular Plan - Growth
1,000
95,570.05
150,000,000
–
100
967,548.43
200,000,000
–
1,470,160,347
82,024,105
1,486,301,840
82,107,804
ICICI Prudential Liquid - Regular Plan - Growth
Aggregate Market value of quoted current investments
As at 31.03.2015
As at 31.03.2014
e
e
–
–
G(II) TRADE RECEIVABLES Unsecured Debts outstanding for more than six months Considered good Considered doubtful Less : Allowance for doubtful debts
9,447,000
9,447,000
(9,447,000)
(9,447,000)
–
–
Other debts, considered good
–
62,335
TOTAL
–
62,335
G(III) CASH AND BANK BALANCES Balances with banks in current accounts in deposit accounts with maturity less than three months (including interest accrued thereon) Cash on hand
15,201,148
4,766,659
235,108,740
690,424,788
1,486,389
2,383,862
78,250,545
72,298,255
330,046,822
769,873,564
Other bank balances in deposit accounts with maturity more than three months but less than twelve months (including interest accrued thereon) TOTAL
G(IV) SHORT TERM LOANS AND ADVANCES Unsecured, considered good Related parties: Intercorporate deposits (including interest accrued thereon) Holding company Prepaid expenses TOTAL
–
985,000,000
1,132,431
1,056,835
1,132,431
986,056,835
S-1715
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) H
Contingent liabilities as at March 31, 2015 R Nil (previous year: R Nil)
I
Commitments as at March 31, 2015 R Nil (previous year: R Nil) 2014-15 r
J
r
2013-14 r
r
REVENUE FROM OPERATIONS Sale of services: Fee collection from users of facility
247,781,987
242,209,253
Other operating revenue: License fee from wayside amenities TOTAL K
698,653
713,424
248,480,640
242,922,677
OTHER INCOME Interest income from: Bank deposits On intercorporate deposits and unsecured loans Others
8,254,351
10,237,670
44,849,771
96,370,983
–
3,282,958
Profit on sale of current investments Profit on disposal of fixed assets Miscellaneous income TOTAL
L
53,104,122
109,891,611
87,958,920
55,064,367
2,500
15,498
954,000
836,916
142,019,542
165,808,392
OPERATING EXPENSES Toll management fees
19,142,664
17,291,536
Security services
12,987,462
12,361,815
651,705
719,708
Insurance Repairs and maintenance: Periodic Major Maintenance expense Toll road & bridge
20,000,000
18,597,000
104,719
687,245
Plant and machinery
1,356,358
1,845,964
Others
3,156,686
6,332,613
Power and fuel TOTAL
S-1716
TRANSPORTATION INFRASTRUCTURE LIMITED
24,617,763
27,462,822
1,686,271
2,010,004
59,085,865
59,845,885
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) 2014-15 r M
2013-14 r
r
r
EMPLOYEE BENEFIT EXPENSES Salaries, wages and bonus
8,641,294
8,819,164
Contributions to and provisions for: Provident fund (Refer P(3)(i))
494,974
447,742
Gratuity (Refer P(3)(ii))
495,498
164,621
Compensated absences (Refer P(3)(ii))
602,853
94,191
Staff welfare expenses TOTAL
N
912,203
1,150,133
11,146,822
10,675,851
114,628,358
132,173,852
Others
4,860,350
876,148
TOTAL
119,488,708
133,050,000
ADMINISTRATION AND OTHER EXPENSES Rates and taxes
22,163
37,760
19,239,489
21,918,744
Postage and communication
267,559
218,176
Printing and stationery
413,966
455,326
Professional fees (Refer note (a) below)
Travelling and conveyance
1,436,173
1,952,177
Corporate social responsibility expenses
4,672,706
193,403
Miscellaneous expenses (Refer note (b) below)
1,242,214
10,904,946
27,294,270
35,680,532
TOTAL (a)
706,554
FINANCE COSTS Interest on borrowings
O
1,593,325
Professional fees includes Auditor’s remuneration (including service tax) as follows: 2014-15 R
2013-14 R
a)
As auditor
296,630
269,664
b)
For taxation matters
148,315
129,214
c)
For Company law matters
14,606
12,384
d)
For certification fees
e)
Reimbursement of expenses
TOTAL
168,540
97,080
–
18,989
628,091
527,331
(b) Miscellaneous expenses include R NIL (previous year : R 94,47,000/-) being allowance made for doubtful debts.
S-1717
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) P
OTHER NOTES FORMING PART OF ACCOUNTS
P(1) Corporate Information L&T Transportation Infrastructure Limited is a Special Purpose Vehicle (SPV) incorporated for the purpose of the construction of a bypass and a bridge over the River Noyyal (known as Athupalam bridge) in Coimbatore District in the state of Tamil Nadu, under Build, Operate and Transfer (BOT) basis based on the Concession Agreement dated 3rd October 1997 with Ministry of Surface Transport, Government of India and Department of Highways, Government of Tamilnadu. The Company had completed construction of the Athupalam bridge on December 11, 1998 and the bypass on January 18, 2000. The concession period is 21 years for Athupalam bridge and 32 years for the bypass including the construction period. P(2) The Company has not earned any income/incurred any expenditure in foreign currency during the year. (previous year: R Nil) P(3) Disclosure pursuant to Accounting Standard (AS) 15 (revised) on “Employee benefits”: (i) Defined contribution plan: An amount of R 4,94,974 (previous year : R 4,47,742) being contribution made to recognised provident fund is recognised as expense and included under Employee benefit expense (Note M) in the Statement of Profit and loss. (ii) Defined benefit plans: a) The amounts recognised in Balance sheet are as follows: Particulars
A)
B)
Present value of defined benefit obligation - Wholly funded - Wholly unfunded Amount to be recognised as liability or (asset) Amounts reflected in the Balance Sheet Liabilities Assets Net Liability / (asset)
b)
Gratuity plan As at As at 31.03.2015 31.03.2014 r r – 1,727,788
– 1,232,290
1,727,788 1,727,788
1,232,290 1,232,290
1,727,788 –
1,232,290 –
1,727,788
1,232,290
The amounts recognised in the Statement of Profit and loss are as follows: Particulars
1 2 3 4
Current service cost Interest on Defined benefit obligation Actuarial losses/(gains) Past service cost
Gratuity plan As at As at 31.03.2015 31.03.2014 r r 80,181 104,745 310,572 –
59,343 89,065 16,213 –
TOTAL (1 TO 4)
495,498
164,621
I II
495,498 –
164,621 –
495,498
164,621
Amount included in "employee benefit expenses" Amount included as part of "finance costs"
TOTAL (I + II)
S-1718
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) c)
The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof are as follows: Particulars
Gratuity plan As at 31.03.2015 r
As at 31.03.2014 r
1,232,290
1,219,948
80,181
59,343
104,745
89,065
i) Employer
–
–
ii) Employee
–
–
310,572
16,213
Opening balance of the present value of defined benefit obligation Add: Current service cost Add: Interest cost Add: Contribution by plan participants
Add/(less): Actuarial losses/(gains) Less: Benefits paid
–
Add: Past service cost Closing balance of the present value of defined benefit obligation d)
–
1,727,788
1,384,569
As at 31.03.2015
As at 31.03.2014
Principal actuarial assumptions at the Balance sheet date: Particulars
e)
–
1)
Discount rate
8.50%
8.50%
2)
Salary growth rate
6.00%
6.00%
3)
Attrition rate
5.00%
5.00%
The amounts pertaining to defined benefit plans are as follows: Particulars
As at 31.03.2015
As at 31.03.2014
As at 31.03.2013
As at 31.03.2012
As at 31.03.2011
v
v
v
v
v
1,727,788
1,232,290
1,113,315
1,219,948
923,383
Gratuity plan (unfunded) Defined benefit obligation
P(4) Disclosure pursuant to Accounting Standard (AS) 16 “Borrowing Costs” Borrowing cost capitalised during the year R Nil. (previous year : R Nil) P(6) Disclosure of related parties / related party transactions pursuant to Accounting Standard (AS) 18 “Related Party Disclosures” a)
List of related parties Holding Company
:
L&T Infrastructure Development Projects Limited
Ultimate Holding Company
:
Larsen & Toubro Limited
Fellow Subsidiaries
:
L&T Krishnagiri Walajahpet Tollway Limited L&T Devihalli Hassan Tollway Limited L&T Metro Rail (Hyderabad) Limited L&T Vadodara Bharuch Tollway Limited L&T General Insurance Company Limited
Key Managerial personnel
:
Sreedhar Vasudevan (w.e.f 11th Dec 2014)
S-1719
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) b)
Disclosure of related party transactions: Particulars
2014-15
2013-14
r
r
Holding Company L&T Infrastructure Development Projects Limited •
Intercorporate deposits placed
6,788,500,000
4,825,000,000
•
Intercorporate deposits refunded
7,773,500,000
4,890,000,000
•
Interest received on Intercorporate deposit
44,849,771
99,010,824
•
Purchase of goods and services
14,706,884
14,041,796
•
Refundable deposit received for directors’ nomination’
200,000
-
•
Reimbursement of expenses to
571,455
5,041,830
•
Reimbursement of expenses from
1,200,711
233,970
Ultimate Holding Company Larsen & Toubro Limited •
Intercorporate deposits refunded
–
–
•
Interest received on Intercorporate deposit
–
–
•
Advance paid and adjusted
7,152,226
7,271,494
•
Purchase of goods and services
2,245,929
2,325,998
•
Reimbursement of expenses
1,483,978
1,571,373
–
5,073
Fellow Subsidiaries L&T Krishnagiri Walajahpet Tollway Limited •
Reimbursement of expenses
L&T Devihalli Hassan Tollway Limited •
Unsecured loan placed and refunded
–
143,000,000
•
Interest received Unsecured loan
–
926,837
•
Reimbursement of expenses
–
–
–
23,699
–
150,000
626,634
719,708
472,373
–
L&T Metro Rail (Hyderabad) Limited •
Reimbursement of expenses
L&T Vadodara Bharuch Tollway Limited •
Coins Transportation
L&T General Insurance Company Limited •
Insurance premium paid
Key management personnel Payment of Salaries / Perquisites • c)
Sreedhar Vasudevan (w.e.f 11th Dec 2014)
Amount due to and due from related parties(net): ( Amount in r ) Particulars
Amounts due (to)/from As at 31.03.2015
As at 31.03.2014
(10,114,156)
984,797,112
100,000
(1,778,805)
Holding Company L&T Infrastructure Development Projects Limited Ultimate Holding Company Larsen & Toubro Limited d)
No amounts pertaining to related parties have been written off or written back during the year. (previous year: R Nil)
S-1720
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) P(7) Disclosure pursuant to Accounting Standard (AS) 19 “Leases” The Company has not acquired any assets either under Finance lease or under Operating lease. Hence disclosures pertaining to Accounting Standard (AS) 19 “Leases” are not applicable. P(8) Disclosure pursuant to Accounting Standard (AS) 20 “Earnings per share” Basic and Diluted Earnings per share (EPS) computed in accordance with Accounting Standard (AS 20) “Earnings per share”. Particulars
2014-15 r
2013-14 r
Basic and diluted Profit after tax as per accounts (R)
A
112,025,028
246,131,981
Weighted average number of shares outstanding
B
41,400,000
41,400,000
Basic and diluted EPS (R) Face value per equity share (R)
A/B
2.71
5.95
10.00
10.00
P(9) Disclosure pursuant to Accounting Standard (AS) 22 “Accounting for Taxes on Income” Components of deferred tax liabilities and deferred tax assets Particulars
As at 31.03.2015
As at 31.03.2014
r
r
597,954
418,856
Deferred Tax Assets (DTA) Gratuity Compensated absences
654,773
438,171
Allowance for doubtful debts
3,211,035
3,211,035
DEFERRED TAX ASSETS
4,463,762
4,068,062
193,071,336
189,520,291
Deferred Tax Liabilities (DTL) Difference between WDV as per books and tax Tax effect of depreciation charged to retained earnings
(331,383)
Deferred Tax Liabilities
192,739,953
189,520,291
Net deferred tax liability / (asset)
188,276,191
185,452,229
2,823,962
85,008,945
Incremental provision for deferred tax liability / (asset) Add :Tax effect of depreciation charged to retained earnings NET INCREMENTAL PROVISION FOR DEFERRED TAX LIABILITY / (ASSET)
331,383 3,155,345
P(10) Disclosure pursuant to Accounting Standard (AS) 28 “Impairment of Assets” Based on a review of the future discounted cash flows of the project facility, the recoverable amount is higher than the carrying amount and hence no provision for impairment is made for the year. P(11) Disclosure pursuant to Accounting Standard (AS) 29 “Provisions, Contingent Liabilities and Contingent Assets”: (a) Nature of provision: Periodic major maintenance expense represents provision made for resurfacing obligations in accordance with the terms of the concession agreement with Ministry of Surface Transport, Government of India and Department of Highways, Government of Tamilnadu. (b) Movement of provision during the year: Particulars
As at 31.03.2015 Amount (R)
As at 31.03.2014 Amount (R)
Balance at the beginning of the year
18,597,000
–
Additional provision during the year
20,000,000
18,597,000
Provision used/reversed during the year Balance at the closing of the year
–
–
38,597,000
18,597,000
S-1721
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) P(12) Arbitration During the year 2009-10, the Company had received a termination notice from the Ministry of Road Transport and Highways, Government of India, (MoRTH). The Company moved the honourable High Court, New Delhi, against the notice served and the court vide its order dated January 21, 2010, directed that status-quo be maintained till the Steering Group constituted under the Concession Agreement decides on the dispute. Subsequent to the Steering Group’s meeting, the Company invoked arbitration and pending arbitration filed a petition with the High Court of Delhi, seeking interim injunction and restraining MoRTH, from taking possession of the Project and to permit the Company to collect Toll. The High Court in its order dated March 26, 2010, restrained MoRTH from taking over the possession of the project except through the due process of courts and law thereby allowing the Company to continue to collect Toll. Arbitral Tribunal has been constituted as per the terms of the Concession Agreement. Pleadings and arguments by both parties concluded on November 30, 2013 following which written submissions have been filed with the Arbitral Tribunal. Arbitral Tribunal has pronounced the Award on December 12, 2014 in favour of the Company stating that the termination of Concession by MORTH is illegal, unwarranted and violative of stipulations in the Concession Agreement. The Tribunal also awarded, inter alia, compensation to be paid to the Company for loss of revenue at Athupalam Bridge and suitable extension of the concession period. It is understood that MORTH has challenged the award on March 12, 2015 seeking stay of the aforesaid Tribunal award. Hence the same has not been considered in this financial statements. Q
SIGNIFICANT ACCOUNTING POLICIES
1
Basis of accounting The Company maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain fixed assets, in accordance with generally accepted accounting principles [“GAAP”] in compliance with the provisions of the Companies Act, 2013 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 read with Rule 7 of The Companies (Accounts) Rules, 2014 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 and relevant provisions of the Companies Act, 1956 read with the Circular No.07/2014 dated April 1, 2014 of the Ministry of Corporate Affairs. The preparation of financial statements in conformity with GAAP requires that the Management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of tangible and intangible fixed assets, allowance for doubtful debts / advances, future obligations in respect of retirement benefit plans etc. Difference, if any, between the actual results and estimates is recognized in the period in which the results are known.
2
Presentation of financial statements The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 “Cash Flow Statements”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards. Amounts in the financial statements are presented in Indian Rupees in line with the requirements of Schedule III. Per share data are presented in Indian Rupees to two decimal places.
3.
Revenue recognition A. Revenue from operations a)
Fee from users of facility
b)
Other operating revenue
Fee collection from the users of the facility are accounted for as and when the amount is due and recovery is certain. License fees from wayside amenities are accounted on accrual basis as per arrangement with the customers.
4.
B. (i)
Other income Interest income is accrued at applicable interest rate.
(ii)
Other items of income are accounted as and when the right to receive arises.
Tangible fixed assets Fixed assets are stated at original cost less accumulated depreciation and cumulative impairment. Administrative and other general overhead expenses that are specifically attributable to the construction or acquisition of fixed assets or bringing the fixed assets to its working condition are allocated and capitalised as a part of cost of fixed assets.
S-1722
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) 5.
Depreciation Depreciation on assets has been provided on straight-line basis at the rates specified in the Schedule II to the Companies Act, 2013. In respect of the following asset categories depreciation is provided at rates in line with their estimated useful lives. Category of Asset
Building
Useful life as per Schedule II - Years
Revised useful life adopted based on technical evaluation - Years
60
50
10
7
Vehicles Motor cars Plant and Equipment General Toll equipments
15
7
DG sets above 30 kva
15
12
Printers, scanners, Multi-functional devices
5
4
Split AC and Window AC
15
4
Other Air conditioners and refrigeration equipments
15
12
The company has carried out assessment of useful lives of these assets and based on technical justification, different useful lives have been arrived at in respect of above assets. The justification for adopting different useful life compared to the useful life of assets provided in Schedule II is based on the consumption pattern of the assets, past performance of similar assets and duly supported by technical assessment by a internal technical personnel. Depreciation on additions / deductions is calculated pro-rata from / to the month of additions / deductions. For the assets that are transferred / sold within the group companies, depreciation is calculated up to the month preceding the month of transfer / sale within the group. Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is allocated over its remaining useful life. Assets valued below R 5,000/- are written off in the year of purchase / capitalisation. 6
Intangible assets and amortisation Intangible asset is recognized when it is probable that future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Carriage way representing Toll collection rights are obtained in consideration for rendering construction, operation and maintenance services in relation to building and maintenance of the project on Build, Operate and Transfer basis. The cost of such carriageway comprises of construction cost and other pre-operative costs incurred during the construction phase. Administrative and other general overhead expenses net of income from temporary investments, incurred upto the date of commencement of commercial operations that are specifically attributable to the construction/acquisition of the Intangible assets is allocated and capitalised as part of cost of the asset. Such carriage way on completion are capitalised as Intangible asset and are amortised over the period of concession using the revenue based amortisation method prescribed under Schedule II to the Companies Act, 2013. Under the revenue based method, amortisation is provided based on proportion of actual revenue earned till the end of the year to the total projected revenue from the intangible asset expected to be earned over the concession period. Total projected revenue is reviewed at the end of each financial year and is adjusted to reflect the changes in earlier estimate vis-a-vis the actual revenue earned till the end of the year so that the whole of the cost of the intangible asset is amortised over the concession period.
7
Impairment of assets The carrying amounts of fixed assets are reviewed at each balance sheet date to ascertain whether they are recorded in excess of their recoverable amount. Where carrying values exceed this recoverable amount, assets are written down to their recoverable amount. At each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine a) the provision for impairment loss, if any, required; or b)
“the reversal, if any, required of impairment loss recognized in previous periods. “Impairment loss, if any is recognized when the carrying amount of an asset or group of assets, as the case may be, exceeds the recoverable amount.
Recoverable amount is determined: a) In the case of individual asset, at higher of the net selling price and value in use. b)
In the case of a cash generating asset, (a group of assets that generates identifiable independent cash flows), at higher of the cash generating unit’s net selling price and the value in use.
Value in use is determined as the present value of the estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life.
S-1723
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) 8
Employee benefits The following are the accounting policies of the Company with regard to Employee benefits: (i)
Short term employee benefits: All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences etc. and the expected cost of bonus, exgratia are recognized in the period in which the employee renders the related service.
(ii) Post employment benefits: (a) Defined contribution plans: State Governed Provident Fund linked with Employee Pension Scheme is the Defined Contribution Plan. The contribution paid / payable under the scheme is recognised during the period in which the employee renders the related service. (b) Defined benefit plans: The employees gratuity fund scheme is a defined benefit plan. The present value of the obligation under such Defined Benefit Plan is determined based on actuarial valuation using Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the balance sheet date. Actuarial gains and losses are recognized in the Statement of Profit and loss. (iii) Other long term employee benefits: The obligation for long term employee benefits such as long term compensated absences is recognized in the same manner as in the case of defined benefit plans as mentioned in (ii)(b) above. 9
Investments Investments, which are readily realisable and are intended to be held for not more than one year from the date of acquisition, are classified as current investments. All other investments are classified as long term investments. Long-term investments are carried at cost, after providing for any diminution in value, if such diminution is other than temporary in nature and the same is determined separately for each individual investment. Current investments are stated at lower of cost and market value. The determination of carrying amount of such investments is done on the basis of weighted average cost of each individual investment.
10
Foreign currency transactions (i) The reporting currency of the company is Indian Rupee. (ii)
Foreign currency transactions are recorded on initial recognition in the reporting currency using the exchange rate applicable on the date of transaction.
(iii) At each Balance Sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at historical cost are reported using the exchange rate on the date of the transaction. (iv) Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each balance sheet date at the closing rate are recognised as income or expense in the period in which they arise. 11
Borrowing costs “Borrowing costs include interest, commitment charges, amortisation of ancillary costs, amortisation of discounts/premium related to borrowings, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign currency borrowings, to the extent they are regarded as an adjustment to interest costs.” “Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of such assets, till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.”
12
Taxes on income Taxes on income for the current year are determined on the basis of taxable income and tax credits computed in accordance of the provisions of the Income-tax Act, 1961, and based on expected outcome of assessments / appeals.” “Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.“ Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Other deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
S-1724
TRANSPORTATION INFRASTRUCTURE LIMITED
L&T TRANSPORTATION INFRASTRUCTURE LIMITED
NOTES FORMING PART OF ACCOUNTS (Contd.) 13
Leases Assets acquired on leases where a significant portion of risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of Profit and loss on accrual basis.
14
Cash and bank balances Cash and bank balances include fixed deposits and margin money deposits. Short term and liquid investments being not free from more than insignificant risk of changes in value, are not included as part of cash and cash equivalents.
15
Provisions, contingent liabilities and contingent assets Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if a)
the Company has a present obligation as a result of a past event.
b)
a probable outflow of resources is expected to settle the obligation and
c) the amount of the obligation can be reliably estimated. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received. Contingent liability is disclosed in the case of : a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation. b)
a present obligation when no reliable estimate is possible and
c)
a possible obligation arising from past events where the probability of outflow of resources is not remote.
Contingent assets are neither recognised, nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date. 16
Commitments Commitments are future liabilities for contractual expenditure. They are classified and disclosed as follows: (i) Estimated amount of contracts remaining to be executed on capital account and not provided for. (ii)
Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the management.
17
Operating cycle for current and non-current classification Operating cycle for the business of the company is taken as twelve months.
18
Cash Flow Statement Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of: i)
transactions of a non-cash nature
ii)
any deferrals or accruals of past or future operating cash receipts or payments and
iii)
items of income or expense associated with investing or financing cash flows.
Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.
As per our report attached SHARP & TANNAN Chartered Accountants (Registration No. 003792S) By the hand of P. RAJESH KUMAR Partner Membership No. 225366 Place : Chennai Date : May 28, 2015
For and on behalf of the Board
K. SRINATHAN Company Secretary
U. POOVARASAN Chief Financial Officer
KARTHIKEYAN T. V. Director DIN: 01367727
R. CHANDRASEKARAN Director DIN: 00746247
Place : Chennai Date : April 28, 2015
S-1725
TRANSPORTATION INFRASTRUCTURE LIMITED
Route map to the 18th AGM venue of L&T Transportation Infrastructure Limited
L&T Transportation Infrastructure Limited (Near Miot International Hospitals)