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Overview Performance Reviews Governance Financials27Annual Report 2010-112. RESTRUCTURING OF BUSINESSWith effect from 1st April, 2010 (‘the Appointed Date’), the dealershipbusiness of Caterpillar comprising Construction and Mining Solutionsand Power Systems Solutions carried out by the Company has beende-merged as a going concern and vested in the wholly ownedsubsidiary of the Company viz., Tractors India Private Limited (‘TIPL’)pursuant to the provisions of Sections 391 to 394 of the Companies Act,1956 under a Scheme of Arrangement (‘the Scheme’) sanctioned bythe Hon’ble High Court at Calcutta vide Order dated 12th July, 2010. Inaccordance with the Scheme, TIPL has issued 44,89,430 Equity Sharesof ` 10/- each at a premium of ` 203.48 on every share aggregating to` 95,83,96,000/- (Rupees Ninety Five Crores Eighty Three Lacs NinetySix Thousands only) to the Company as the Purchase Consideration.In view of the above, the financial figures of the Company for theyear under review vis-à-vis previous year are not comparable as theprevious year’s figure includes the Caterpillar business which has beende-merged from the Company and vested with TIPL with effect from(w.e.f.) 1st April, 2010.3. PERFORMANCEOn a consolidated basis, your Company’s Group turnover includingIncome from Operations and Other Income stood at ` 1402.81Crores compared to ` 1079.89 Crores in the previous year and profitbefore tax is ` 90.06 Crores compared to ` 91.36 Crores in theprevious year.On standalone basis, Turnover including income from operations andOther Income for the year under review stood at ` 237.33 Crores vis-àvis` 887.94 Crores in the previous year. The profit before tax stood at` 42.01 Crores vis-à-vis ` 75.49 Crores in the previous year.Tractors India Private Ltd.The newly formed Wholly Owned Subsidiary Company, Tractors IndiaPvt. Ltd., in India, achieved a turnover including income from operationsand Other Income of ` 911.10 Crores and earned a profit before tax of` 33.80 Crores.Myanmar Tractors Ltd.The Wholly Owned Subsidiary Company, Myanmar Tractors Ltd., inthe Union of Myanmar, achieved a turnover including income fromoperations and Other Income of ` 35.19 Crores compared to ` 53.06Crores in the previous year and a profit before tax of ` 3.93 Crorescompared to ` 3.79 Crores in the previous year.TIL Overseas Pte. Ltd.The Wholly Owned Subsidiary Company, TIL Overseas Pte. Ltd., inSingapore, achieved a turnover including income from operations andOther Income of ` 237.61 Crores compared to ` 160.58 Crores inthe previous year and achieved a profit before tax of ` 10.18 Crorescompared to ` 10.92 Crores in the previous year. This activity is totallyfor and on behalf of Myanmar Tractors Limited.Tractors Nepal Pvt. Ltd.The Wholly Owned Subsidiary Company, Tractors Nepal Pvt. Ltd., inNepal, achieved a turnover including income from operations andOther Income of ` 1.76 Crores compared to previous year of ` 2.51Crores and earned a profit before tax of ` 0.32 Crores compared to` 1.37 Crores in the previous year.4. FINANCEAfter providing ` 10.81 Crores as Provision for Taxation, ` 7.02 Crores(including Dividend Tax of ` 1 Crore) distributed as Equity Dividend,` 21.06 Crores has been carried forward to Balance Sheet. The Reserve& Surplus (excluding Revaluation Reserves) of the Company increasedfrom ` 181.22 Crores to ` 205.42 Crores and the Shareholders’ Fund(excluding Revaluation Reserves) increased from ` 191.25 Crores to` 215.45 Crores.The Reports and Accounts of Subsidiary Companies are annexed tothis Report alongwith the statement pursuant to Section 212 of theCompanies Act, 1956.5. DIVIDENDThe Board has recommended a Dividend @ ` 6/- on each Equity Share(Face Value of ` 10/- each) for the year under review.6. NEW BUSINESS-EQUIPMENT & PROJECT SOLUTIONS (EPS)Your Company has already procured around 135 acres of land atChangual Industrial Park, Paschim Midnapore, West Bengal whereinconstruction and other work for setting up of the first phase ofthe manufacturing facility have already commenced. Production/manufacturing at the said phase is expected to commence inJuly, 2011.Your Company is also in the process of acquiring around 104 acresof land on long-term lease from WBIDC Ltd. at Vidyasagar IndustrialPark, Paschim Midnapore, West Bengal. The second and third phaseof the manufacturing facility for EPS business is proposed to beset up therein.7. FIXED DEPOSITThe Company has not accepted any deposits from the public during theyear. Deposit outstanding as on 31st March, 2011 including unclaimeddeposit was nil.