Final CRWC AnnualReport 2009 2010 · Yamuna Bridge, Agra 15000 MT 9. Koodal Nagar, Madurai 12000 MT...

3rd Annual Report, Ending March 2010

Central Railside Warehouse Company Ltd.



CONTENTS

BOARD OF DIRECTORS

MANAGEMENT & FIELD OFFICERS

BANKERS & STATUTORY AUDITORS

VISION, MISSION

NOTICE

DIRECTORS’ REPORT

PROFIT & LOSS ACCOUNT AND

BALANCE SHEET

AUDITORS’ REPORT

COMMENTS OF THE C&AG OF INDIA

1

2-3

4

5

6-7

9-22

23-46

47-53

54







Board of Directors

Directors

B.K. SAHA, IAS (Retd.)

Chairman

Sh. B.B. Pattanaik Sh. Naveen Prakash, IAS Sh. Virendra Singh

1

Ashok Chowdhry, IRTSManaging Director



Management

Corporate Office

1. Ashok Chowdhry, IRTS, Managing Director

2. Shri S. K. MIdha, General Manager (F&A)

3. Shri Pawan Kant, General Manager (M&O)

4. Shri P. K. Jain, Superintending Engineer

5. Shri S. K. Kapoor, Sr. Manager (F&A)

6. Shri. J.K. Sharma, Manager (F&A)

7. Shri Madan Pal, Assistant Engineer(Civil)

2





FIELD OFFICERS

1. Sh. K. Bhupal Reddy, Manager, RWC, Whitefield (Bangalore)

2. Sh. S.Moinuddin, Manager, RWC, Sanathnagar (Hyderabad)

3. Sh. S.J. Sangare, Manager, RWC, Nasik Road (Maharastra)

4. Sh. R. Rengasamy, Manager, RWC, Koodalnagar (TN)

5. Sh. H.K. Gaidhani, Manager, RWC, Badnera (Maharastra)

6. Sh. R.K. Khushwaha, Manager, RWC, Kandla (Gujarat)

7. Sh. Raja Ram (Retd.), Manager, RWC, Shakurbasti (Delhi)

8. Sh. R. Kishore, Manager, RWC, Nishatpura, Bhopal (MP)

9. Sh. M.Z. Hussain, Manager, RWC, Roza, Shahjahanpur (UP)

10. Sh. V.K. Srivastava, Manager, RWC, Alamnagar, Lucknow (UP)

11. Sh. D. K. Dubey, Manager, RWC, Yamuna Bridge, Agra (UP)

12. Sh. P.K. Gupta, Manager, RWC, Ghaziabad (UP)

13. Sh. L. Stephens, Manager, RWC, Korrukupet (TN)

14. Sh. A.S. Chauhan, AE, RWC, Yamuna Bridge, Agra (UP)

15. Sh. S.K. Tiwari, AE, RWC, Dehri-on-Sone (Bihar)

16. Sh. K.S. Negi, A.E, RWC, Saswad Road, Pune (Maharastra)

17. Sh. S. Sarkar, AE, RWC, Dankuni (West Bengal)

3



Bankers

• Punjab National Bank, Gulmohar Enclave, Green Park, New Delhi - 110049

• Canara Bank, A-27, Hauz Khas, New Delhi - 110016

Statutory Auditors

M/s. Satyendra Jain & Associates,

Chartered Accountants, New Delhi

4





VISION

“To provide Multi Modal Logistics to the trade and support Indian Economy in reducing

logistics cost.”

MISSION

“To provide quality storage facility at transit nodes, maximize the use of the Railways

assets; bring economy of scales for customers, Railways and CRWC.”

5



CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITED

6A/6, 3RD FLOOR,SIRI FORT INSTITUTIONAL AREA,

AUGUST KRANTI MARG,NEW DELHI -110049

NOTICE

Notice is hereby given that the 3rd ANNUAL GENERAL MEETING of the Shareholders of theCompany will be held as under:

Date : 23rd September, 2010Day : ThursdayTime : 12.30 P.M.Venue : At its Registered office at Warehousing Bhawan, 4/1, Siri Institutional Area,

Hauz Khas, New Delhi – 110 016

to transact the following business :-

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Balance Sheet and Profit & Loss Account of

the Company as at 31st March 2010 together with the reports of Auditors’ thereon and

Directors’ Report.

2. To elect a Director in place of Director retiring by rotation and being eligible for

re-appointment.

3. To take note of appointment of M/s Satyendra Jain & Associates, Chartered Accountants

as Statutory Auditors of the Company at a remuneration of Rs. 50,000/-.

Place : New Delhi By order of Board of

Date : 1st September, 2010 Central Railside Warehouse Co. Ltd.

Sd/- Ashok Chowdhry

Managing Director

6





To

All The Shareholders

(As per list enclosed)

Notes :-

1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to

attend and on a poll, to vote instead of himself. A proxy need not be a member of the

company. Proxies in order to be effective must be received by the Company not less than

48 hours before the meeting.

2. Members are requested to inform the company immediately of any change in their

addresses quoting their folio numbers.

7



8





9

Centrall Railside Warehouse Company Ltd.(A Govt. of India Enterprise)

DIRECTORS’ REPORT

3rd Annual Report 2009 - 2010



10


DIRECTORS’ REPORT

Dear Shareholders,

On behalf of the Board of Directors, I take pleasure in presenting the 3rd Annual Report

on the business and operations of your Company together with Audited statement of

Accounts and Auditors Report thereon, for the year ended on the 31st March 2010.

The Central Railside Warehouse Company Limited (CRWC), which is a fully owned

subsidiary of Central Warehousing Corporation, was incorporated on 10th July, 2007

and commenced its business on 24th July, 2007. During the year under report, the

authorized and paid up capital of the company remained unchanged at Rs. 150.00 crore

and Rs. 40.56 crore, respectively.





11

FINANCIAL PERFORMANCE

1.1 The turnover of Your Company increased to Rs. 3751.98 lakh during the year

as compared to Rs. 1550.91 lakh in the preceding 6 months period registering a

year on year growth of 20.96%. Consequently, the Profit Before Tax(PBT) increased

to Rs. 1117.52 lakh during the year as compared to Rs. 483.63 lakh during the

porevious period of 6 months, registering a year on year growth of 15.53%. The

Profit After Tax (PAT) also increased to Rs. 814.91 lakh during the year as compared

to Rs. 322.32 lakh in the previous period of 6 months.

1.2 The Financial results of your company for the year 2009-10 as compared to

preceding 6 months of 2008-09 are given in Table - I.

Table - I. Performance at a glance

Gross Receipts 3751.98 1550.90

Gross Expenditure 2385.87 978.92

Profit before depreciation, 1366.11 571.98

interest & tax

Less : Depreciation 219.00 88.35

Less : Interest 29.59 _

Profit before tax (PBT) 1117.52 483.63

Profit after Tax (PAT) 814.91 322.32

Gross margin 1369.20 646.60

Net worth 5437,04 4622.13

Earning per Share (Rs.) 2 0.80

2008-096 MONTHS

(01.10.2008 TO 31.3.2009)

2009-10

Rs. in Lakhs



12

1.3 DIVIDEND

The Board of Directors has not delcared any dividend for the year in view of the liabilityof interest payments on the loan as well as requirement of further capital for developmentof Railside Warehousing Complexes (RWCs).

AUDITORS

The Comptroller and Auditor General of India (C&AG) appointed M/s Satyendra Jain and

Associates, Chartered Accountants, New Delhi as auditors for the year ended on the

31st March, 2010.





13

2. PHYSICAL PERFORMANCE

2.1 As on the 31st March 2010, Your Company operated 15 RWCs with a total

installed capacity of 251,265 MT as against 13 RWCs with a total installed

capactiy of 220,465 MT operated as at the end of the previous financial year.

The units which are in operation together with their respective capacities are

given in table II.

SI. No. Name of RWC Storage Capacity (in MT)

TABLE II

1. Whitefield, Bangalore 29700 MT

2. Shakurbasti, Delhi 19330 MT

3. Nishatpura, Bhopal 16700 MT

4. Sanathnagar, Hyderabad 13225 MT

5. Ghaziabad 12200 MT

6. Nasik Road 9270 MT

7. Alamnagar, Lucknow 15500 MT

8. Yamuna Bridge, Agra 15000 MT

9. Koodal Nagar, Madurai 12000 MT

10. Badnera, Amaravati 17000 MT

11. Raza, Shahjahanpur 18500 MT

12. Kandla, Gujrat 32200 MT

13. Korrukupet, Chennai 16840 MT

14. Hatia, Ranchi 12800 MT

15. Saswad Road, Pune 11000 MT

TOTAL 2,51,265 MT

2.2 During the year, the Company handled 83475 wagons as against 68301wagons handled during the previous year registering a growth of 22%.

2.3 In terms of volume, the company handled 74.99 lakh MT during the year asagainst 67.63 lakh MT handled during the previous year, registering a growthof 11%.



14

3.0 PROJECTS IMPLEMENTATION

3.1 During the year 2009-10, your Company added two new units, one at RWC, Hatia,

Ranchi (12,800 MT) and the other at Saswad Road (Pune). A partial capacity of

11,000 MT out of 18,700 MT was made operational at RWC, Saswad Raod. Your

company has also augmented capacity at the existing centers by adding 2,000 MT

(out of planned capacity of 7,000 MT) at Agra, Phase - III and 5,000 MT (out of a

total planned capacity of 19,500 MT) at Korrukupet, Chennai, Phase-II. Thus, the

total capacity added during the year was 30,800 MT.





15

3.2 The construction of RWCs at Dehri-on-Sone, Bihar (11700 MT), Dankuni, Kolkata,

West Bengal (13,750 MT) with a capital outlay of Rs. 13.30 crore, are in progress.

An agreement with Indian Railways for development of RWC Mysore was

signed on the 1st October, 2009 and the construction work is likely to commence

shortly.

3.3 Your Company has also identified some new centers for development of RWCs in

terms of the MoU signed between CWC and the Indian Railways and proposals for

Jogeshwari, Mumbai (Maharashtra), Bhiwandi Road, Mumbai (Maharastra) and

Vatva, Ahmedabad (Gujarat) are under consideration of the Indian Railways.



16

4. HUMAN RESOURCE MANAGEMENT

While approving the setting up of a subsidiary company by CWC for creation and

management of Railside Warehousing Complexes to provide logistics support to domestic

and exim rail-borne cargo and others, the Government of India envisaged a staff strength

of 15 officers to be taken on deputation from CWC/Government/other private agencies

having experience and expertise in the field of logistics. The company has worked on the

principle of keeping a lean organizational structure. With the passage of time and

expansion of its operations the Administrative Ministry also approved appointing two

officers for each functional RWC to provide efficient services to users and the trade.





17

5. VIGILANCE

The company is managing its day-to-day operations through the effective use of a

website for contract/purchases, accountability as a public enterprise and observing the

guidelines issued by the CVC. Electronic mode (ECS) is being used for payments to the

vendors. In accordance with the instructions of the Ministry, the vigilance activities of

the company are being looked after by the Chief Vigilance Officer of the Central

Warehousing Corporation.

As of now, the Company has 28 personnel on deputation from CWC and 14 officials have

been taken on cost recovery basis to manage the operations. The company has also

engaged a consulting agency for framing the HR policy, the Recruitment Rules and to

suggest an organizational structure. The consultants are likely to submit their report

shortly.



18

6. CORPORATE GOVERNANCE

According to the directives of the Ministry of Consumer Affairs, Food & Public

Distribution, as an interim arrangement, the Executive Committee of the Central

Warehousing Corporation is functioning as the Board of Directors of Your Company. As

on 31.03.2010 the Board of Directors consists of :

1. Shri B. K. Saha as Chairman

2. Shri B. B. Pattanaik, M.D., CWC, as a Director

3. Shri Naveen Prakash, Joint Secretary, Dept. of Food & P.D., as a Director

4. Shri Virendra Singh, as a Director and

5. Shri Ashok Chowdhry as the Managing Director.

During the year under report, Five meetings of the Board of Directors were held.

The Audit Report and factual statements were placed before the Board of Directors and

discussed. There has been no change in the Board of Directors of Your Company during

the year under report.





19

7.0 DIRECTORS RESPONSIBILITY STATEMENT

a) In the preparation of the Annual Accounts, the applicable accounting standards

have been followed and there are no materials departures;

b) Accounting policies have been followed in consultation with the statutory

auditor and applied consistently and judgement and estimates are reasonable

and prudent so as to depict a true and fair view of the state of affairs of the Company;

c) Adequate care has been taken for maintenance of accounts in accordance

with the provisions of the Companies Act, 1956 and for safeguarding the

assets of the Company and for preventing/detecting fraud and

other irregularities;

d) The Annual Accounts have been prepared on a “going concern” basis.



20

8.0 TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS ANDOUTGO AND CONSERVATION OF ENERGY

CRWC is planning to adopt modern technolgies in its existing facilities.

The Company is in the process of interoducing a Warehouse

Management System for efficient management of its affairs and

3 RWCs are being considered in the first phase.

CRWC ensures efficient use of energy by minimizing all kinds of

wastages. During the financial year under report, energy related expenditure

has been kept to a minimum as far as possible.





21

ACKNOWLEDGEMENT

Your company places on record its immense gratitude to Shri Sharad Pawar, Hon’ble

Minister of Agriculture, Consumer Affairs, Food & Public Distribution and Prof. K. V.

Thomas, Hon’ble Minister of State for Consumer Affairs, Food & Public Distribution for

their valuable advice and guidance from time to time. The company is also grateful to

Smt. Alka Sirohi, IAS Secretary (Food & Public Distribution) and all other senior officials of

the Department of Food & Public Distribution for their encouragement and support.

Your company also places on record its sincere gratitude to the Directors and the

Executives/officers and staff of the Central Warehousing Corporation for their valuable

guidance and advice in running the affairs of the Company.

The Board also gratefully acknowledges the support and cooperation it received

from the Indian Railways and stakeholders who continued to repose their faith and trust

in the working of the Company. The Board places on record it appreciation for the most

valuable services rendered by the officers and employees of CRWC without whose

dedicated efforts and hard work, the Company would not have been able to achieve such

results.

The Board of Director would like to assure that your company would continue to

strive hard for fulfilling the objectives of providing efficient and seamless supply chain

solutions as a customer focused organization and strive for continual improvement in its

performance.

For and on behalf of the Board

sd/-

Chairman



22






PROFIT & LOSS ACCOUNTFOR THE PERIOD

1st APRIL, 2009 TO 31st MARCH, 2010&

BALANCE SHEET AS AT 31st MARCH, 2010

23



CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITEDBALANCE SHEET AS AT 31st MARCH 2010

sd/-(S.K. Midha)

General Manager (F&A)

sd/-(B.B. Pattanaik)

Director

sd/-(Ashok Chowdhry)Managing Director

sd/-(A.K. Jain)

Partner

Particulars ScheduleAs at

31.03.2010Rs.

As at31.03.2009

Rs.I. SOURCE OF FUNDS1. Share Holder’s Funds

a. Equity Share Capital 1b. Reserves and Surplus 2

2. Loan Fundsa. Secured Loans 3b. Unsecured Loans 4

3. Deferred Tax Liabilities(net)

II. APPLICATION OF FUNDS1. Fixed Assets 5

a. Gross Blockb. Less : Depreciation

c. Net Blockd. Capital Work in Progress

2. Investments 63. Current Assets, Loans and Advances

a. Sundry Debtors 7b. Cash & Bank Balances 8c. Other Current Assets 9d. Loans and Advances 10e. Material-at-Site 11

Less : Current Liabilities & Provisions 12a. Liabilitiesb. Provisions

Net Current Assets TOTAL

40,56,00,00013,81,04,001

_72,91,32,539

6,41,13,319

1,29,29,53,1064,67,14,522

13,04,51,731

-

2,77,78,5891,19,90,211

17,45,0028,20,62,179

4,31,466

13,41,02,8472,96,45,055

TOTAL

40,56,00,0005,66,13,287

_56,91,32,539

4,08,82,099

1,08,11,35,1342,48,17,533

3,49,10,406

-

3,33,53,51890,03,93534,97,035

4,31,58,3834,50,631

9,80,84,8681,03,78,715

Significant Accounting Policies & Notes to Accounts 20Cash flow Statement 21In terms of our report of even dateFor Satyendra Jain & Associates

Membership No.: 72783.New DelhiDate :

1,33,69,49,859 1,07,22,27,925

1,24,62,38,584 1,05,63,17,601

12,40,07,447 8,94,63,502

(3,97,40,456)_

1,33,69,49,859

(1,90,00,081)_

1,07,22,27,926

16,37,47,902 10,84,63,583

24





CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITEDPROFIT & LOSS ACCOUNT FOR THE YEAR ENDING 31.03.2010

sd/-(S.K. Midha)



Director


sd/-(A.K. Jain)

Partner

Particulars Schedule As at31.03.2010

Rs.

As at31.03.2009

Rs.

INCOME- Warehousing Charges 13- Handling Charges 14- Other Income 15

EXPENSES- Personnel Expenses 16- Administration Expenses 17- Direct Expenses 18- Financial Expenses 19- Depreciation 5TOTALProfit for the yearLess/ Add Prior Period Adjustments (Net)PROFIT BEFORE TAX- Provision for Current Taxation[Refer Schedule 20 “B” Note 12]

- for the period- Less-MAT Credit Entitlement- Provision for Deferred Tax[Refer Schedule 20 “B” Note 12]

- Provision for Fringe Benefit TaxPROFIT AFTER TAXProfit Brought ForwardAPPROPRIATIONSGeneral ReserveProfit carried to Balance Sheet

TOTAL

Significant Accounting Policies & Notes to Accounts 20Cash flow Statement 21

In terms of our report of even dateFor Satyendra Jain & AssociatesChartered Accountants


Earning per Share -Basic (Face Value of Rs 10/-)

17,63,29,95617,72,41,562

2,16,26,17937,51,97,697

3,10,16,1254,25,08,966

16,47,53,71629,58,755

2,18,99,51226,31,37,07411,20,60,623

3,08,10511,17,52,518

1,89,92,3401,19,61,7572,32,31,220

8,14,90,7145,66,13,287

_13,81,04,001

2

8,08,85,9076,63,39,147

78,65,21015,50,90,264

1,11,59,2061,73,10,9286,18,68,812

88,34,9689,91,73,9145,59,16,350

75,53,2504,83,63,100

34,99,98834,99,988

1,59,35,8871,95,271

3,22,31,9422,43,81,345

_5,66,13,287

0.8

25




SCHEDULE-1:SHARE CAPITALParticulars As at As at

31.03.2010 30.09.2009 Rs Rs

Authorised 1,50,00,00,000 1,50,00,00,00015,00,00,000 Shares of Rs.10/- Each

Issued, Subscribed & Paid-up 40,56,00,000 40,56,00,0004,05,60,000 Shares of Rs. 10/-Each Fully Paid Up(All the Share are held by Central Warehousing Corporation)TOTAL 40,56,00,000 40,56,00,000

SCHEDULE-2:RESERVES AND SURPLUSParticulars As at As at

31.03.2010 30.09.2009 Rs Rs

General Reserve :Profit & Loss AccountOpening Balance 5,66,13,287 2,43,81,345Add : Amount transferred from Profit & Loss Account 8,14,90,714 3,22,31,942TOTAL 13,81,04,001 5,66,13,287

SCHEDULE-3:SECURED LOANSParticulars As at As at

31.03.2010 30.09.2009 Rs Rs

From Others: - -TOTAL - -

SCHEDULE-4:UNSECURED LOANSParticulars As at As at

31.03.2009 30.09.2008 Rs Rs

Other Loans & AdvancesFrom CWC 72,91,32,539 56,91,32,539

TOTAL 72,91,32,539 56,91,32,539

26





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27




SCHEDULE-6: INVESTMENTSParticulars As at As at

31.03.2010 31.03.2009 Rs Rs

In Subsidiary CompaniesUnquoted (Long Term, Valued at Cost) - -

TOTAL - -

SCHEDULE-7: SUNDRY DEBTORS(Unsecured, considered good unless otherwise stated)

Particulars As at As at 31.03.2010 31.03.2009

Rs Rs

a) Debts outstanding for a period exceeding six months 54,07,899 48,79,647b) Other debtors 2,26,87,545 2,84,73,871Less: Provision for doubtful debts 3,16,855 -

TOTAL 2,77,78,589 3,33,53,518

SCHEDULE-8: CASH AND BANK BALANCESParticulars As at As at

31.03.2010 31.03.2009 Rs Rs

Cash in hand 84,239 52,643DD/Cheque in Hand 8,08,000 -In Fixed Deposit - -Balance with scheduled Banks:-Punjab National Bank 1,10,48,363 89,04,983-Canara Bank 49,609 46,309TOTAL 11,9,90,211 90,03,935

SCHEDULE-9:OTHER CURRENT ASSETSParticulars As at As at

31.03.2010 31.03.2009 Rs Rs

Warehousing and other charges accrued 17,45,002 34,97,035

TOTAL 17,45,002 34,97,035

28





SCHEDULE-10: LOANS AND ADVANCES(Unsecured, considered good unless otherwise stated)


Rs Rs

Loans & Advances recoverable in cash or in kind or for valueto be received and/or adjusted 92,60,968 1,23,85,509Advance Fringe Benefit Tax 4,52,874 4,52,874Advance Tax (A.Y. 2010-11) 50,524MAT Credit Entitlement 34,99,988 34,99,988TDS Receivable(08-09) 2,68,20,012 1,64,87,936TDS Receivable(09-10) 3,00,16,056 1,03,32,076MAT Credit 1,19,61,757TOTAL 8,20,62,179 4,31,58,383

SCHEDULE-11: MATERIAL AT SITE


Rs Rs

- Cement 45,732 45,732- Steel 3,85,734 4,04,899TOTAL 4,31,566 4,50,631

SCHEDULE-12: CURRENT LIABILITIES & PROVISIONS


Rs Rs

a) Current Liabilities.Sundry Creditorsa. SSI Creditors - -b. MSE Creditors - -c. Others 1,34,10,2847 98084868TOTAL SUNDRY CREDITORS 1,34,10,2847 98084868b) ProvisionsProvision for LTC 1,00,000Provision for Audit Fees 50,000 50,000Provision for Tax Audit Fees 40,000 40,000 Provision for Productivity Enhanced Incentive 1,74,000 -Provision for FBT(2007-08) 1,69,044 1,69,044Provision for FBT(2008-09) 2,83,830 2,83,830Provision for Tax (08-09)/(09-10) 34,99,988 34,99,988Provision for Tax (for 15 months) 63,35,853 63,35,853Provision for Tax (A.Y. 2010-11) 1,89,92,340TOTAL PROVISIONS 2,96,45,055 1,03,78,715


29




SCHEDULE-13:WAREHOUSING CHARGES

Particulars For the period For the period ended 31.03.2010 ended 31.03.2009

(Six Months) Rs Rs

Warehousing Charges 17,63,29,956 8,08,85,907

TOTAL 17,63,29,956 8,08,85,907

SCHEDULE-14: HANDLING CHARGESParticulars For the period For the period

ended 31.03.2010 ended 31.03.2009(Six Months)

Rs Rs

Handling Charges 17,72,41,562 6,63,39,147

TOTAL 17,72,41,562 6,63,39,147

SCHEDULE-15: OTHER INCOMEParticulars For the period For the period

ended 31.03.2010 ended 31.03.2009(Six Months)

Rs Rs

Income-Rent Office 14,06,733 3,53,954Income-Handling Operations 37,50,996 15,62,915Documentation & Insurance Charges 1,56,03,290 46,90,026Interest on Deposit 3,83,685 _Others Income 1,05,179 1,57,026Paisa rounded off 23 _Miscellaneous Income 3,76,273 11,01,289

TOTAL 2,16,26,179 78,65,210

30





SCHEDULE-16 : PERSONNEL EXPENDITURE


(Six Months) Rs Rs

Pay & Allowances (MD) 10,00,454 -Basic Pay 78,82,876 55,95,549Deputation Allowance 7,66,970 0CCA - 10,258Conveyance - 19,700Conveyance Charges (Petrol Reimbursement) 1,70,844 1,10,943Dearness Allowance 18,32,726 (5,12,292)Dearness Pay 2,35,889 (1,56,425)Employers Contribution of PF 18,22,669 5,19,222Grade Pay 4,73,200 0Productivity Enchanced Incentive 1,38,000 -Gratuity Contribution 4,65,238 2,06,333HRA 20,64,205 7,31,177Lease Rent (HRA) 2,72,581Leave Salary Contribution 10,76,533 4,06,755Medical Expenses 10,51,568 2,74,135Merit Scholarship 7,200 7,200Newspaper & Periodicals 33,284 19,727Other Allowances 93,653 30,000Pay & Allowances 73,63,537 34,94,455Personal Pay 47,970 -Post Retirement Benefits 2,23,136 -Remuneration of Directors 18,000 13,000Wages 7,73,401 3,80,407LTC 1,48,166 9,062Perquisites 26,24,797Transport Subsidy 3,88,452Washing Allowance 720Leave Encashment 40,056

TOTAL 3,10,16,125 1,11,59,206

31



SCHEDULE-17 : ADMINISTRASTION EXPENSES


(Six Months) Rs Rs

Advertisement Expenses 5,01,741 4,06,747Annual General Meeting Expenses 78,672 19,980Bank Changes 1,17,262 1,51,684Business Promotion Expenses 49,370 -Computerisatin Charges 2,749 -Computer Stationary 43,678 -Conveyance Charges 19,01,093 11,10,768Electricity Charges 54,28,069 28,86,046Entertainment Expenses 8,35,900 3,45,807Fumigation Charges 1,48,639 13,931Freight & Octari 10,812 13,931Insurance Charges 7,49,167 74,946Labour Charges 500 -Legal Expenses 52,200 14,509Lease Rent 2,95,736 72,132Membership & Subscription 4,557 -Miscellaneous Expenses 12,88,009 7,07,013Newspaper & Periodicals 31,917 18,566Others Expenses (Round-Off) - -Office Maintenance 23,15,090 2,02,989Printing & Stationary 8,39,906 2,66,714Professional Charges 19,09,155 5,32,801Postage 1,32,011 58,733Petty Dead Stock 72,798 94,760Polythene Covers - 1,55,342Rent-Office 47,47,500 18,00,000Repair & Maintenance (Equipment) 3,88,692 5,18,955Repairs & Maintenance (Building) 10,63,198 8,100Repairs & Maintenance (Others) 0 7,46,106Security Charges 1,52,37,501 58,65,466Travelling Expenses (Director) 1,49,730 19,807Travelling Expenses (MD) 11,34,973 -Travelling Expenses (Chairman) 91,566 -Travelling Expenses 13,21,590 6,18,794Telephone Expenses 8,57,263 3,99,857Warehouse Licence Fees 2,222 2,222Water Charges 1,36,728 67,285Audit Fees 50,000 50,000Dunnage A/c 51,868 -Quality Improvement Expenses (ISO) 1,03,249 -Tax Audit Fees 40,000 40,000Staff Training Expenses 7,000 34,500Staff Welfare 0 -Provision for Bad & Doubtful Debts 3,16,855

TOTAL 4,25,08,966 1,73,10,928

32





SCHEDULE-18: DIRECT EXPENSES


(Six Months) Rs Rs

Handling & Transport Charges 15,37,78,369 5,77,05,988Railway Share 1,09,75,347 41,62,824

TOTAL 16,47,53,716 6,18,68,812

SCHEDULE-19: FINANCIAL EXPENSES


(Six Months) Rs Rs

Interest on Loan 29,58,755 0

TOTAL 29,58,755 -

CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31ST MARCH 2010

Particulars Current Period ending 31.03.2010

Rs

CASH FLOW FROM OPERATING ACTIVITIESNET PROFIT BEFORE TAX 11,17,52,518 4,83,63,100Adjustment for :Depreciation 2,18,96,989 94,49,704Provision for Doubtful Debts 3,16,855 -Interest on Loan paid 29,58,755 -Interest on Deposits (income) (3,83,658) (1,57,026)Miscellaneous Expenditure Written off - 74,61,519Operating Profit 13,65,41,459 6,51,17,297Less Taxes Paid (Net of MAT Credit Entitlement)Tax paid (70,81,107) (1,95,271)Operating Profit Before Working Capital changes 12,94,60,352 6,49,22,026Adjustment for changes in Working Capital(Increase)/Decrease in Sundry Debtors 52,58,074 (59,29,271)

SCHEDULE-21

33

Previous Periodending 31.03.2009

Rs



(Increase)/Decrease in Other Receivables/ Current Assets 17,71,198 (32,75,635)(Increase)/Decrease in Loans & Advanced (3,88,53,272) (1,90,688)(Increase)/Decrease in Sundry Creditors 3,60,17,979 2,82,26,581(Increase)/Decrease in Trade and Other Payables 1,92,66,340 26,31,359Adjustment due to rounding off (1) 1Net Cash Generated From Operationsq 15,29,20,670 8,63,84,373

CASH FLOW FROM INVESTING ACTIVITIESAdditions of Fixed Assets (21,18,17,972) (27,39,87,202)Interest on Deposits (income) 3,83,658 1,57,026Capital Work in Progress (9,55,41,325) 2,79,88,073Net Cash Used in Investing Activities (B) (30,69,75,639) (24,58,42,103)

CASH FLOW FROM FINANCING ACTIVITIESProceeds from long term borrowing 16,00,00,000 15,50,04,706Interest on Loan paid (29,58,755) -Proceeds from Share Capital - -Net Cash used in Financing Activities (C) 15,70,41,245 15,50,04,706

Net Increase/(Decrease) in Cash & Cash Equivalents(A+B+C) 29,86,276 (44,53,024)Cash and Cash Equivalents-Opening 90,03,935 1,34,56,959Cash and Cash Equivalents-Closing 1,19,90,211 90,03,935Net Increase/(Decrease) in Cash & Cash Equivalents 29,86,276 (44,53,024)

Notes :-

1) The above Cash Flow Statement has been prepared under the “Indirect Method” as setout in Accounting Standard - 3 Cash Flow Statement.

2) Previous period’s Figures have been regrouped/ rearranged/ recasted wherevernecessary to make them comparable with those of current year.

In terms of our report of even dateFor Satyendra Jain & AssociatesChartered Accountants

sd/-(S.K. Midha)



Director


sd/-(A.K. Jain)

Partner


34






SCHEDULE TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2010.

SCHEDULE-20: SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS

Background Information

Central Railside Warehouse Company Ltd. (CRWC) was incorporated as on 10.07.07& commenced its business on 24.07.07. CWC has so far contributed Rs.4056 lacs towards itsshare in equity capital of the company. The Company has Purchased Railside Warehousesalong with related Fixed Assets, Current Assets, Liabilities & Revenue items from CWC, fromthe date of its commencement of business. Company has paid an amount of Rs.3984.21 lacsagainst transfer of Fixed Asset valuing Rs. 8575.54 lacs & the balance amount Rs.4591.33lacs has been treated as interest free unsecured loan upto 31.3.2010. Further, a sum of Rs.1800 lacs has been received from CWC for development of RWCs as unsecured loan at aninterest at the rate of 9% p.a. from 1st January 2010.In addition, A short term loan of Rs. 900lacs has also been taken from CWC on interest for the ongoing projects to be repaid after theloan is sanctioned by the Bank. The total loan outstanding as on 31st March,2010 is Rs.7291.33lakhs.

During the year, company has decided to close its third annual accounts on 31st March,2010 i.e. 12 month (previous period 31st March, 2009 i.e. 6 months).

A. SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PREPARATION

The accompanying financial statements are prepared in accordance with generallyaccepted accounting principles in India (“GAAP”), under the historical cost convention,on the accrual basis. GAAP comprises mandatory accounting standards (AS) referredto in the Companies(Accounting Standard) Rules 2006 issued by the CentralGovernment in exercise of the power conferred under sub-section(i)(a) of section642 and the relevant provision of the Companies Act, 1956 (the ‘Act’).

2. USES OF ESTIMATES

a. The preparation of the Financial Statements in conformity with GAAP requiresManagement to make estimates and assumptions that affected the reported balancesof assets and liabilities and disclosures relating to contingent assets and liabilities asat the date of the financial statements and reported amounts of income and expensesduring the period. Examples of such estimates include provisions for doubtful debts,future obligations under employee retirement benefit plans, income taxes and theuseful lives of fixed assets and intangible assets.

35



b. Management periodically assesses using, external and internal sources, whether thereis an indication that an asset may be impaired. An impairment occurs where thecarrying value exceeds the present value of future cash flows expected to arise fromthe continue use of the asset and its eventual disposal. The impairment loss to beexpensed is determined as the excess of the carrying amount over the higher of theassets net sales price or present value as determined above. Contingencies arerecorded when it is probable that a liability will be incurred, and the amount can bereasonably estimated. Where no reliable estimate can made, a disclosure is made ascontingent liability. Actual results could differ from those estimates.

3. REVENUE RECOGNITION

a. Revenue is recognized to the extent that it is probable that the economic benefits willflow to the company & the revenue can be reliably measured.

b. Warehousing charges are accounted on accrual basis.

c. Claim against contractors are accounted for on its realization.

d. Revenue from Services rendered is recognized as the service is performed based onagreements/arrangements with the concerned parties.

e. Interest is recognized on a time proportion basis taking into account the amountoutstanding and the rate applicable.

f. Dividends are recognized when the shareholders’ right to receive payment isestablished during the accounting year.

4. EXPENSESExpenses are accounted for on the accrual basis and provisions are made for all knownlosses and liabilities.

5. MATERIAL AT SITE

Chemicals and construction materials, Steel & cement are valued at cost or netrealizable value whichever is less.

6. FIXED, INTANGIBLE ASSETS & CAPITAL WORK IN PROGRESS

Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition isinclusive of directly attributable costs such as freight, duties, taxes and all otherexpenditure, to bring the assets to the conditions of intended use. Any subsidy/reimbursement/contribution received for installation and acquisition of any FixedAssets is shown as deduction in the year of receipt.

Assets acquired under the Assets transfer agreement are stated at transfer price i.e.Net book Value of Assets.

Capital Work in progress is stated at cost.

36





Capitalization of Railside Warehouse is based on Completion Certificate of storageworthiness and depreciation is charged on the basis of certificate of commissioningof the Railside warehouse.

Intangible assets are recognized on the basis of recognition criteria as set out in AS26 on “Intangible Assets”.

The cost of Engineering Division (Construction Overhead) is capitalized and absorbedat the ratio of total Capital Work Cost.

7. DEPRECIATION

a. Depreciation on assets is provided on straight line method at the rates and in themanner specified in Schedule XIV to the Companies Act, 1956.

b. Depreciation on Fixed Assets added/disposed off during the year/period is providedon pro-rata basis with reference to the date of addition/disposal. Individual assetscosting Upto Rs.5000 are depreciated in full in the year of purchase.

8. FOREIGN EXCHANGE TRANSACTIONS/TRANSLATION

Transactions in foreign currencies are recognized at rates existing at the time atwhich transactions have taken place. Year-end balances are translated at the T.T.buying rate of exchange for receivables and T.T. selling rate for payables as at thedate of the balance sheet. Exchange differences are dealt with in the Profit & LossAccount.

9. TAXES ON INCOME

a. Current Tax: Provision is made for income tax, under the tax payable method, basedon the liability as computed after taking credit for allowances and exemptions.Adjustments in books are made only after the completion of the assessment. In caseof matters under appeal, due to disallowances or otherwise, full provision is madewhen the Company accepts the said liabilities.

b. Deferred Tax: The differences that result between the profit offered for income taxand the profit as per the financial statements are identified and thereafter a deferredtax asset or deferred tax liability is recorded for timing differences, namely thedifferences that originate in one accounting period and reverse in another. Deferredtax is measured based on the tax rates and tax laws enacted or substantively enactedat the Balance sheet date. Deferred tax asset is recognised only to the extent there isvirtual certainty that the asset will be realized in the future. Carrying values of deferredtax asset is adjusted for its appropriateness at each balance sheet date.

37



10. EMPLOYEE BENEFITS

Short-term employee benefits are recognized as an expense at the undiscountedamount in the profit and loss account of the year in which the related service isrendered.

Defined contribution plan: company’s contributions/ payable during the year towardsprovident fund is recognized in the profit & loss account.

Defined Benefit Plan: company’s liability towards defined Benefit plan is determinedby actuarial valuation as on the balance sheet date.

11. INVESTMENT

Investments are classified into Current Investments and Long Term Investments. Thecost of investments includes acquisition charges such as brokerages, fees and duties.Long-tem investments are valued at cost. Provision for diminution is made to recognizea decline, other than temporary.

12. EARNING PER SHARE

a. Basic earnings per share are calculated by dividing the net profit or loss for the periodattributable to equity shareholders by the weighted average number of equity sharesoutstanding during the period.

b. For the purpose of calculating diluted earnings per share, the net profit or loss for theperiod attributable to equity shareholders and the weighted average number of sharesoutstanding during the period are adjusted for the effects of all diluting potentialequity shares.

13. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance Sheet date. If there isany indication of impairment based on internal/external factors, an impairment lossis recognized wherever the carrying amount of an asset exceed its recoverableamount. The recoverable amount is the greater of the assets net selling price andvalue in use. In assessing value in use, the estimated future cash flows are discountedto their present value at the weighted average cost of capital.After impairment, depreciation is provided on the revised carrying amount of theassets over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending onchanges in circumstances. However, the carrying value after reversal is not increasedbeyond the carrying value that would have prevailed by charging usual depreciationif there was no impairment.

38





14. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognizedwhen there is a present obligation as a result of past events and it is probable thatthere will be an outflow of resources. Contingent Liabilities are not recognized butare disclosed in the notes. Contingent Assets are neither recognized nor disclosed inthe financial statements.

15. BORROWING COST

a. Borrowing costs, less any income on the temporary investment out of thoseborrowings, that are directly attributable to acquisition of a qualifying asset arecapitalized as a part of the cost of that asset.

b. Other borrowing costs are recognized as expense in the period in which they areincurred.

16. LEASES

a. Assets taken on lease, under which the lessor effectively retains all the risks andrewards of ownership, are classified as operating lease. Operating lease paymentsare recognized as expense in the profit and loss account on a straight-line basis overthe lease term.

b. Assets acquired under leases where all the risks and rewards of ownership aresubstantially transferred to company are classified as finance leases. Such leases arecapitalized at the inception of the lease at the lower of fair value or the presentvalue of minimum lease payments and liability is created for an equivalent amount.Each lease rental paid is allocated between the liability and interest cost so as toobtain a constant periodic rate of interest on the outstanding liability for each period.

39



B. NOTES TO ACCOUNTS

1. (a) Previous period accounts were for 6 months whereas current periodaccounts are for a period of 12 months i.e. a year. Therefore the figures are notstrictly comparable.

(b) Previous period figures have been regrouped /rearranged wherever considerednecessary.

2. Contingent Liabilities not provided for :

(a) Claims against the Company notAcknowledged as Debts includingClaims of suppliers/contractors.

As at31.03.2010

(Rs.)

As at31.03.2009

(Rs.)

(b) Depositor’s claim in respect of lossesPending settlement with Insurers.

(c) Counter Guarantees for BankGuarantees.

(d) Duties & Tax liabilities disputedby the company

23,24,400

NIL

NIL

NIL

23,24,400

NIL

NIL

NIL

3. Capital commitment (net of advances) Rs. NIL (previous period Rs. NIL)

4. During the year, the company has capitalized the borrowing cost of Rs.18,54,396/-incurred on construction of Railside Warehousing Complexes of tangible fixedassets. The allocation of interest on borrowings, for the purpose of capitalizationin respect of funds borrowed during the year is based on the proportion of workscompleted and in progress as per the best possible estimates.

5. During the year, the amount of Rs.50,524/- was deposited on account of FringeBenefit Tax (FBT) for the first quarter of the year 2009-10 which has been treatedas Advance Tax for the financial year 2009-10.

6. The estimated amounts Rs.2003.95 lacs (previous period Rs 1049.93 Lacs) of civilcontracts on capital accounts remaining to be executed as on 31.03.2010.

7. During the year, previous period’s expenses of Rs 3,30,702/- have been shownunder the prior period account in the profit & Loss account.

8. Sundry creditors include outstanding dues of small scale undertaking is Nil. Theabove information regarding small scale industrial undertaking has beendetermined to the extent such parties have been identified, on the basis ofinformation available with the Company.

40





9. The company has no dues to Micro & Small enterprises during the year ended 31st

March 2010.

10. Debit & Credit balances appearing in current assets and current liabilities are subjectto confirmation except the bank balances.

11. Liability towards Post retirement Medical Scheme (PRMS) in respect of employeeson deputation from CWC has been determined through actuarial valuation by CWC.

12. TAXATION

(a) Minimum Alternate Tax (MAT)

Provision for taxation is ascertained on the basis of assessable profits computed inaccordance with the provisions of Income Tax Act, 1951. However, where the tax iscomputed in accordance with the provision of section 115JAA of the Income TaxAct, 1961, as Minimum Alternate Tax(MAT), it is charged off to the profit & LossAccount in the relevant year. Further in accordance with the Guidance Note onAccounting for credit available in respect of Minimum Alternative Tax(MAT) underthe Income Tax, issued by the Council of the Institute of Chartered Accountants ofIndia, MAT credit is recognised as an asset under the head “Loans & Advances”based on the convincing evidence that the company will pay normal Income taxduring the specified period accordingly a sum of Rs.1,19,61,757/-(previous yearRs.34,99,988) has been shown as MAT Credit entitlement under loan and advances.

(a) Deferred Tax Assets/Liability

Opening as at31.03.2009

(Rs.)

Movementduring the year

(Rs.)

Closing as at31.03.2010

(Rs.)

4,08,82,099 2,69,48,983 6,78,31,082Deferred Tax Liability

Net Deferred Tax Liability / (Assets)

Deferred Tax (Assets) NIL 37,17,763 37,17,763

4,08,82,099 2,32,31,220 6,41,13,319

41



Components of Deferred Tax are as under:

As at31.03.2010

(Rs.)

As at31.03.2009

(Rs.)Deferred Tax Liability

Deferred Tax Liabilities recognised fortiming difference due to:

19,95,61,876 12,02,76,846Differences in WDV in block of fixed assetsasper Tax books and Financial books

Deferred Tax Liabilities

Deferred Tax Assets recognised fortiming difference due to:

1,05,20,959Business Loss/Unabsorbed Depreciation

3,16,855Provision for Bad & Doubtful Debts

1,00,000Provision for LTC

(37,17,763)Deferred Tax Assets

(6,41,13,319)

N.R.

N.R.

N.R.

0

(4,08,82,099)Net Deferred Tax (Liabilities)

(6,78,31,082) (4,08,82,099)

During the year company has recognised the deferred Tax Assets as it is probable thatimmediate future taxable profits will be available against which the deductible temporarydifferences & unused tax losses can be utilized.

12. Director’s RemunerationAs at

31.03.2010(Rs.)

As at31.03.2009

(Rs.)

a) Director’s remuneration paid/provided in theaccounts:(i) Salary and Allowances(ii) Perquisites(iii) Contribution to provident Fund &

Superannuation Fund

18,000

13,76,269

26,67,304TOTAL

13,000

19,807

32,807

b) Sitting Fees paid to Directors

c) Directors Travelling Expenses

10,00,4542,72,581

NIL

NILNILNIL

42





13. Remuneration to AuditorsAs at

31.03.2010(Rs.)

As at31.03.2009

(Rs.)

a) Audit Fee

40,000

NIL

40,000

50,000

50,000 50,000

b) Tax Audit Fee

c) Other Matters

14. I) Related Party Disclosure

The information regarding related parties has been determined on the basis of

criteria specified in AS-18 “Related Party Disclosures” and to the extent such

parties have beenidentified by the company, on the basis of information

available with them.

Name of related parties and description of relationship:

1. Holding Company Central Warehousing Corporation

2. Subsidiaries NIL

3. Fellow Subsidiaries NIL

4. Associates NIL

5. Key Management Personnel:

Board of Directors:

Mr. B.K.Saha, Chairman

Mr. B.B.Pattanaik, Director

Mr. Naveen Prakash, Director

Mr. Virendra Singh, Director

Mr. Ashok Chowdhry, Managing Director

6. Relatives of Key Management Personnel: NIL

43



II) Transaction carried out with related parties in the ordinary course of businessis as follows.

Holding Enterprise: Central Warehousing Corporation

As at31.03.2010

(Rs.)

As at31.03.2009

(Rs.)

a) Subscription to Share Capital

2,700.00

4,591.33

1,100.00

4,591.33

4,056.00 4,056.00

b) Unsecured Loan (Cash)

c) Unsecured Loan

Rs. In Lakh

d) Value of Fixed Assets Transferred

NIL

43.03

86.00

NIL

8,575.44 8,575.54

e) Amount Receivable

f) Amount Payable

15. Segment ReportingThe company has only one line of business which it is performing in only onegeographical location and as such has no separate reportable segment as per AS-17.

16. The company does not have finance/ operating lease arrangement.

17. The Railside Warehousing Complexes have been developed on the land leased byIndian Railways for 30 years in terms of MOU signed between CWC and IndianRailways at a rate of Re.1 per square meter p.a. except for Whitefield, Banglorebeing pilot project. The ownership rights to the land leased by Indian Railways onwhich railside warehouses have been developed by the Company (CRWC) restswith the Central Warehosing Corporation. The assignment of the rights from CWCto CRWC is pending with the Indian Railways.

18. Earning Per Share

For thePeriod ended

31.03.2010

For thePeriod ended

31.03.2009

a) Net Profit After Tax (Rs)

4,05,60,000 4,05,60,000

8,14,90,714 3,22,31,942

b) Weighted average number of equity Sharesoutstanding during the year

c) Basic Earnings per share (Rs.)

2.00 0.80

2.00 0.80

d) Diluted Earning per share (Rs.)

44





The earning per share (EPS) shown in the Profit & Loss account for the year endedon 31st March, 2010 is Rs. 2.00 as against the EPS of Rs.0.80 for the six monthsperiod ended on 31st March, 2009. Based on the average, the EPS was Rs.1.60 inthe previous year in comparison with the EPS of Rs.2.00 for the current year.

19. The Company has not declared dividend during the year in view of the liabilityof interest payments on the loan taken from the CWC and the Union Bank ofIndia for development of raiside warehousing complexes.

20. Additional information pursuant to the provisions of paragraph 4C & 4D of Part IIof Schedule VI of the Companies Act 1956 is not applicable to the company.

21. Other disclosure requirements of Schedule VI to the Companies Act, 1956 arenot applicable to the Company.

22. Provisions (AS-29 Disclosure)

Balance ason 31st

March 2009

Particulars Provisionduring the

year

Utiliseduring the

year

Utiliseduring the

year

Balance ason 31st

March 2010

LTC 0 1,00,000 0 0 1,00,000

Audit Fees 90,000 90,000 90,000 0 90,000

Productivity 0 1,74,000 0 0 1,74,000EnchancedIncentive

Earlier Year FBT 4,52,874 0 0 0 4,52,874

Current Year Tax 0 1,89,92,340 0 0 1,89,92,340

Earlier Year Tax 98,35,841 0 0 0 98,35,841

Total 1,03,78,715 1,93,56,340 90,000 0 2,96,45,055

Signed for Identification Schedule 1-21.In terms of our report of even date

For Satyendra Jain & AssociatesChartered Accountants

sd/-(S.K. Midha)



Director


sd/-(A.K. Jain)

Partner


45



CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITEDBALANCE SHEET ABSTRACT AND COMPANY’S GENDERAL BUSINESS PROFILE

(As per schedule -VI, Part - IV of the Companies Act, 1956

I. Registration Details

CIN No. State CodeBalance Sheet Date

II. Capital raised during the year (Amount in Rs. Lakhs)Public Issue Right Issue

Bonus Issue Others

III. Position of Mobilisation and Deployment of Funds(Amounts in Rs. Lakhs)

Total Liabilities Total Assets

Sources of Funds

Paid - up Captial Reserve and Surplus

Secured Loans Unsecured Loans nilDeferred Tax Liability

Application of FundsNet Fixed Assets Investments

Net Current Assets Misc. Expenditure

Capital Work - in - Progress

IV. Performance of Company (Amount in Rs. Lakhs)Turnover Total Expenditure

+ - Profit/Loss before tax + - Profit/Loss after tax

+ - Earning per Share in Rs. + - Divident Rate (%)

V. Name of Three Principle Products/ Services of Company

Item Code No. N A

(ITC Code)

Product Description Logistics Services

U 6 3 0 2 3 D L 2 0 0 7 P L C 1 6 5 6 7 6 5 53 1 0 3 1 0Date Month Year

4 0 5 6 . 0 0

1 3 3 6 9 . 5 0 1 3 3 6 9 . 0 4

4 0 5 6 . 0 0 1 3 8 1 . 0 4

7 2 9 1 . 3 3

6 4 1 . 1 3

1 2 4 6 2 . 3 9

(-) 4 0 1 . 7 2 N I L

1 3 0 8 . 8 3

3 7 5 1 . 9 8 2 9 3 7 . 0 7

1 1 1 7 . 5 3 8 1 4 . 9 1

2 . 0 0

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AUDITORS’ REPORT

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AUDITORS’ REPORT

TO THE MEMBERS OFCENTRAL RAILSIDE WAREHOUSE COMPANY LIMITED4/1, Siri Fort Institutional Area,August kranti Marg,Hauz KhasNEW DELHI 110003

We have audited the attached Balance Sheet of M/S CENTRAL RAILSIDE WAREHOUSECOMPANY LIMITED as at 31st March 2010, the Profit and Loss Account and Cash FlowStatement for the year then ended annexed thereto.

These financial statements are the responsibility of the Company’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

We have conducted our audit in accordance with auditing standards generallyaccepted in India. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating overall financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.

1. As required by the Companies (Auditor’s Report) Order, 2003 (‘Order’) and asamended by the Company’s Auditors report (Amendment) Order, 2004 issuedby the Central Government of India, in terms of sub-section (4A) of section 227of the Companies Act, 1956, and on the basis of such checks as we consideredappropriate and according to the information and explanation given to us, weenclose in the annexure a statement on the matters specified in Paragraphs 4 &5 of the said Order to the extent applicable to the Company.

2. Attention is drawn to:(a) Point no. 8 & 9 of Part B of Schedule 20 Significant Accounting Policies And

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Notes on Accounts in respect of small scale industrial undertakings and section22 of the “THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENTACT, 2006” respectively, company does not possess sufficient information toestablish whether any creditor is covered under the same or not. We areunable to comment whether there will be any effect on the account of theCorporation.

(b) Point no. 10 of Part B of Schedule 20 on the Significant Accounting Policiesand Notes on Accounts states that debit/credit balances appearning in currentassets ande current liabilities are subjhect to confirmation. Impact of it onfinancial statement could not be ascertained and provided by the company.We are unable to comment whether there will be any effect on the account ofthe company. The position of total balances, confirmed balances andpercentage of unconfirmed balances are given below.

Further to our comments as above and in the Annexure referred to above, wereport that :

We have obtained all the information and explanation, which to the best of ourknowledge and belief were necessary for the purpose of our audit;

S. No. Particulars Amountas per Books

Amount forwhich confirmation

reed by statutoryAuditor/reconciled

% ofunconfirmed

amount.

1 1,10,97,972 1,10,97,972 Nil

2 2,77,78,589 22,16,023 92.02%

3 5,61,58,831 Nil 100%

4 92,60,968 24,00,000 74.08%

Total 10,42,96,360 1,57,13,995 84.93%

BankBalances

AccountReceivables

AccountPayables

Loans andAdvances

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In our opinion, proper books of accounts as required by law have been kept bythe Company so far as appears from our examination of those books;

The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt withby this report are in agreement with the books of account;

In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statementcomply with the requirements of the Accounting Standards referred to insection 211(3C) of the Companies Act, 1956.

In our opinion, and based on the information and explanations given to us, noneof the directors are disqualified as on 31st March 2010 from being appointed as adirector in terms of clause (g) of the sub-section(1) of section 274 of the CompaniesAct, 1956.

In our opinion and to the best of our information and according to the explanationgiven to us, the said accounts read with the Accounting Policies and Notes thereon.give the information required by the Companies Act 1956, in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India.

a) in the case of Balance Sheet, of the state of affairs of the Company as at 31stMarch 2010;

b) In the case of profit and Loss Account, of the Profit for the period then ended;c) in case of Cash Flow Statement, of the cash flows during the period then ended

For Satyendra Jain & AssociatesCHARTERED ACCOUNTANTSFirm No. 012018N

sd/-(Anil Kumar Jain)PartnerMembership No. 072783

PLACE : NEW DELHIDATED : 04.08.2010

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ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS’ REPORTTO THE MEMBERS OF CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITEDON THE ACCOUNTS FOR THE YEAR ENDED ON 31.03.2010.

This is the Annexure referred to in our report on the balance sheet of CENTRALRAILSIDE WAREHOUSE COMPANY LIMITED, as at 31st March, 2010.

(i) (a) The company has maintained proper records showing full particulars,including quantitative details and situation of fixed assets on the basis ofavailable information.

(b) As explained to us, the fixed assets have been physically verified by themanagement during the year in a phased periodical manner, which in ouropinion is reasonable, having regard to the size of the Company and natureof its assets. No material discrepancies were noticed on such physicalverification.

(c) Since a substantial part of fixed assets have not been disposed off duringthe year so as to affect the going concern principle, paragraph 4(I)(c) of theCompanies (Audior’s Report) Order, 2003 (hereinafter referred to asthe Order) is not applicable.

(ii) (a) As explained to us, inventories have been physically verified by themanagement once in a year.

(b) In our opinion and according to the information and explanations given tous, the procedures of physical verification of the inventories followed bythe management are reasonable and adequate in relation to the size of thecompany and nature of its business.

(c) The company has maintained proper records of inventories. As explainedto us, there was no material discrepancies noticed on physical verificationof inventory as compared to the book records.

(iii) (a) The Company has not granted any loans, secured or unsecured, tocompanies, firms or other parties listed in the register, maintained undersection 301 of the Companies Act, 1956, paragraph 4(iii) of the Order is notapplicable.

(b) The company has taken loan from other parties (Central WarehousingCorporation, the holding enterprise) covered under section 301 of theCompanies Act, 1956. The number of such party is one and the maximumamount involved is Rs. 72,91,32,539/-.

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(c) Other terms and conditions are not prejudicial to the interest of the company.(d) As explained to us the loan taken is repayable periodically as per loan

agreement.(iv) In our opinion and according to the information and explaination given to us,

there are adequate internal control procedures commensurate with the size ofthe Company and the nature of its business.

(v) (a) Based upon the audit procedures applied by us and according to theinformation and explanations given to us we are of the opinion that thetransactions required to be entered into the register maintaned under section301 of the Companies Act 1956 have been so entered.

(b) In our opinion, and according to the information and explanations given tous the transactions made in pursuance of contract or arrangements enteredin the register maintained under section 301 of the Companies Act 1956aggregation during the year to Rs. 5,00,000/- or more in respect of eachparty have been made at prices which are reasonable having regard to marketprice for such transactions, prevailing at the relevant time, where such marketprice are available.

(vi) Since the Company has not accepted deposits from the public, paragraph 4(vi)of the order is not applicable.

(vii) During the year under audit, the company has hired servies of independent C.A.Firm for performing the internal audit of Sanath Nagar, Nishatpur, Badnera andAlam Nagar RWs.

(viii) We were infomed that the maintenance of cost records has not beenprescribed by the Central Government under section 209 (1) (d) of theCompanies Act, 1956.

(ix) According to the records of the company, the company is regular indepositing undisputed statutory dues including Provident Fund,Employees’ state Insurance, Income Tax, Sales Tax, Wealth Tax, CustomsDuty, Excise Duty , Cess and other statutory dues with appropriateauthorities. According to the information and explanation givento us, there are not undisputed amounts paybale in respect of suchstatutory dues which have remained outstanding as at 31st March2010 for a period more than six months from the date they become payable.

(x) The Company does not have accumulated losses at the end of the financialyear. Further, the Company has not incurred cash losses in the financial yearas well as in the immediately proceding financial year.

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(xi) The company has not defaulted in repayment of its dues to the financial

institution and banks and debenture holders.

(xii) Since the Company has not granted any loans or advances on the basis of

securityby way of pledge of shares, debentures or other securities, paragraph4(xii) of the Order is not applicable.

(xiii) Since the provision of special statute applicable to chit fund, nidhi or mutual

benefits fund / societies are not applicable to the Company; paragraph 4(xiii)of the Order is not applicable.

(xiv) In our opinion the company is not dealing or trading in shares, securities,

debentures or other investments and hence, paragraph 4(xiv) is not applicable.

(xv) As informed to us, the Company has not given any guarantee for loans takenby others from banks and financial institutions.

(xvi) The company did not raise any long term loan during the year except as referred

to in point no. iii(b) above.

(xvii) On the basis of our examination, the funds raised on short-term basis havenot been used for long-term investments and vise-versa.

(xviii) The Company has not made any preferential allotments of shares to parties

and companies covered in the Register maintaned under Section 301 of the

Comanies Act, 1956.

(xix) Since the Company has not issued any debentures, paragraph 4(xix) of theOrder is not applicable

(xx) Since the company has not raised any money by way of public issue, paragraph4(xx) of the Order is not applicable.

(xxi) As informed to us, there has not been any fraud on or by the Company noticedor reported during the year.

53

For SATYENDRA JAIN & ASSOCIATESCHARTERED ACCOUNTANTSFirm No. 012018N

sd/-(Anil Kumar Jain)PARTNERM.NO. 072783

Place : NEW DELHIDated : 04.08.2010



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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIAUNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTSOF CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITED, NEW DELHI FORTHE YEAR ENDED 31ST MARCH 2010.

The Preparation of financial statements of Central Railside Warehouse Company

Limited New Delhi for the year ended 31st March 2010 in accordance with the financial

reporting framework prescribed under the Companies Act, 1956 is the responsibility

of the management of the company. The Statutory Auditors appointed by the

Comptroller and Auditor General of India under Section 619 (2) of the Companies Act,

1956 are responsible for expressing opinion on these financial statements under Section

227 of the Companies Act, 1956 based on the independent audit in accordance with

the Auditing and Assurance Standards prescribed by their professional body, the

Institute of Chartered Accountants of India. This is stated to have been done by them

vide their Audit Report dated 04.08.2010.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a

supplementary audit under Section 619(3)(b) of the Companies Act, 1956 of the

financial statements of Central Railside Warehouse Company Limited, New Delhi for

the year ended 31st March 2010. This supplementary audit has been carried out

independently without access to the working papers of the statutory auditors and is

limited primarily to inquiries of the statutory auditors and company personnel and a

selective examination of some of the accounting records.

Based on my supplementary audit, nothing significant has come to my knowledge

which would give rise to any comment upon or supplement to Statutory Auditor’s

report under Section 619(4) of the Companies Act, 1956.

For and on the behalf of the Comptrollerand Auditor General of India

sd/-(Onkar Nath)

Pr. Director of Commercial Audit &Ex-Officio Member, Audit Board-IV

Place : New DelhiDate : 21.09.2010

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