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Table of Contents
Mumbai Railway Vikas
Corporation Limited
2nd Floor, Churchgate Station Bldg.,
Mumbai – 400 020.
Annual Report
2008-09
Contents Page No.
Mission and Objectives...............................................3
Notice .........................................................................4
Board of Directors ......................................................5
Chairman’s Statement............................................ 6-7
Directors’ Report .................................................. 8-16
Projects of MUTP (Rail-Component) ..........................17
Auditors’ Report ................................................. 18-19
Annexure to Auditors’ Report ............................. 20-22
Comments of the C&AG of India...............................23
Balance Sheet & Income & Expenditure A/C..... 24-39
(With Notes)
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AUDITORS :- Joshi Nair & Associates
Chartered Accountants
A-201, Mangal Arambh, Opp. S.V.Road,
Near Kora Kendra, Borivali (W)
Mumbai - 400 092.
BANKERS :- (1) ICICI Bank, Mumbai
(2) IndusInd Bank, Mumbai
(3) ABN Amro Bank
(4) Union Bank of India
(5) State Bank of India
(6) HDFC Bank
(7) Yes Bank Ltd.
(8) IDBI Bank Ltd.
REGISTERED
OFFICE :- 2nd Floor
Churchgate Station Building
Mumbai – 400 020.
Tel: 022-2201 4623.
Fax: 022-2209 6972.
Website: www.mrvc.indianrail.gov.in
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MISSION
To devlop world-class infrastructure for an efficient, safe and sustainable Railway system
in Mumbai suburban section to provide comfortable and friendly train services to the
commuters.
OBJECTIVES
• Integrage suburban rail capacity enhancement plans with urban development plan
for Mumbai and propose investments.
• Implement the rail infrastructure projects in Mumbai suburban sections.
• Commercially develop Railway land and airspace in Mumbai area to raise funds for
suburban railway development.
• Resettlement and Rehabilitation of Project Affected Households.
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NOTICE OF THE TENTH ANNUAL GENERAL MEETING
Notice is hereby given that the Tenth Annual General Meeting of Mumbai Railway Vikas
Corporation Limited will be held on 18th September, 2009 (Friday) at 13.00 hrs. at the
Registered Office of the Corporation at 2nd Floor, Churchgate Station Bldg.,
Mumbai - 400020 to transact the following business :
Ordinary Business :-
(1) To receive, consider and adopt the Audited Income and Expenditure Account for
the year ended 31st March, 2009 and the Balance Sheet as at that date together
with the Directors’ and Auditors’ Report thereon and the comments of C & AG on
the Accounts of the Corporation.
(2) To fix the remuneration of Auditors to be appointed by the Comptroller and Auditor
General of India pursuant to Sections 224 (8) (aa)/619 of the Companies Act,
1956 for the financial year 2009-10 by passing with or withour modifications the
following resolution as an Ordinary Resolution.
“Resolved that pursuant to Section 224 (8) (aa) of the Companies Act 1956 the Managing
Director and/or Director (Finance) of the Corporation be and is hereby authorized to fix
the remuneration of Statutory Auditors for the financial year 2009-10 in consulation
with them”.
By order of the Board of Directors
Place: Mumbai (Vijay G. Angane)
Date : 24th August, 2009 Company Secretary
NOTES
(1) A member entitled to attend and vote at the meeting, is entitled to appoint a Proxy
to attend and vote instead of himself and a Proxy need not be a member of the
Corporation.
(2) Instrument appointing a Proxy or other authority, if any, shall in order to be effective
be deposited at the Registered Office of the Corporation not less than 48 hours
before the meeting.
(3) Kindly note that if at the Tenth Annual General Meeting, quorum (i.e.
5 members personally present other than proxy) is not present within half an
hour from the time appointed for holding the meeting, the meeting will be
adjourned for half an hour and the members present at the adjourned meeting
(minimum 2 members) may transact the business for which meeting is called.
Notice
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Board of Directors
Shri P. C. Sehgal
Managing Director
Shri A. K. Goyal
Chairman
Shri P.R.K. MurthyDirector (Infrastructure
& CommercialDevelopment)
Shri Milind Mhaiskar
Director (Resettlement
& Rehabilitation)
Shri Naresh Chandra
Director (Technical)
Shri P.K. Sharma
Director (Projects)Shri N. M. Misra
Director (Finance)
Shri A. K. Tiwari
Part Time Official
Director (IR)
Shri G. R. Madan
Part Time Non-
Official Director (IR)
Shri T. C. Benjamin
Part Time Official
Director (GOM)
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Chairman's Statement
Gentlemen,
It gives me a great pleasure to welcome you all to the 10th Annual General Meeting of
Mumbai Railway Vikas Corporation Ltd.
Mumbai is the financial capital of India and its suburban rail system is the lifeline of the
city. The suburban railway system in Mumbai is the most complex, densely loaded and
intensively utilized system in the world wherein 6.6 million commuters travel by the
suburban trains every day.
To achieve the objective of bringing down the crowding in the trains from around 5000 to
3000 per 9 car rake, MUTP Phase – I and MUTP Phase – II are being implemented at a
cost of Rs. 9475 crores. MRVC has closed its account for the financial year 2008 – 09
with an excess of income over expenditure of Rs. 17.63 crores and with accumulated
reserves and surplus of Rs. 81.47 crores. The financial results are reflected in the
Directors’ Report.
The total expenditure incurred under MUTP Phase – I & II during the financial year 2008
– 09 is Rs. 962.17 crore and cumulative expenditure up to 31.03.2009 is Rs. 2875.74
crore. Implementation of MUTP Phase – I is in full swing and has started showing visible
results and Mumbai commuters have appreciated the introduction of new rakes with
improved features and additional services. The works under MUTP Phase – II have also
been commenced during the year.
The major works completed during the year under review have been brought out in the
Directors’ Report. Some of the highlights are:
(a) EMU procurement / manufacture :
So far, 61 twelve car EMU rakes have been manufactured by ICF, Chennai. As a
result of this, 243 additional services on Western Railway and Central Railway
have been introduced. Also 252 services which were earlier run with 9-car have
been converted into 12-car on Central and Western Railways. With the introduction
of new EMU rakes in public service, there has been reduction of more than 14% in
the crowding levels in suburban trains.
[b] Performance of MoU
For the year 2008-09, the rating of MRVC as per the MOU performance
parameters has been ‘Excellent’ and the same has been sent to DPE for final
acceptance. This is the first time MRVC has achieved the ‘Excellent’ rating.
[c] DC to AC Conversion
All the four World Bank funded contracts for traction substations and
cabling are in progress and will be completed by December 2009. Till date,
688 out of 924 Audio Frequency Track Circuits (AFTCs) have been
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commissioned. Against AFTCs [Package 2] contract, till date 109 AFTCs have
been commissioned. Against the contract for provision of Digital Axle Counters
(DACs), 163 out of 171 have been commissioned so far.
[d] MUTP Phase – II
With the commitment given by Government of Maharashtra for funding of MUTP
Phase – II, Ministry of Railways have sanctioned MUTP Phase II in the Railway
Budget 2008 – 09. The sanctioning of MUTP Phase II will definitely go a long way
in improving the plight of the Mumbai Commuters. The total estimated cost of
MUTP Phase – II is Rs. 5300 crore. The implementation plan for various works of
MUTP Phase – II has been finalized with the Western and Central Railways and
the work has commenced.
[e] Contribution to environmental and social causes
The world is today confronted with the phenomenon of global warming and climatic
change. MRVC had done Environmental Impact Assessment of all the projects
and prepared Environmental Management Plans. Noise and air pollution mitigation
measures have been taken besides the initiatives like health and safety, debris
removal etc. On commissioning of all 129 twelve car, 3 phase new technology
EMU rakes, Mumbai Suburban System would be able to save 20 crore units of
energy per year approximately. As a corollary, there would be a reduction of
approximately 20 lakhs tonnes of carbon dioxide emission, which would qualify
for the Carbon Credit. The World Bank has already identified this project as
“Clear Development Mechanism Project”. All 15000 Project Affected Households
have been resettled and rehabilitated under MUTP Phase – I in the tenements
having rain-harvesting facility. MRVC has planted 13000 saplings with a survival
rate of above 80% and same has been appreciated by the World Bank. MRVC has
thus been contributing towards prevention of global warming, energy conservation
and effective utilization of power. Due to excellent efforts towards environment,
MRVC has been awarded “Gold Medal” for Environment Excellence by Greentech
Foundation, New Delhi.
With this brief overview, I conclude by thanking the Ministry of Railway, the
Government of Maharashtra, MMRDA and the people of Mumbai for all the
assistance and cooperation extended to Mumbai Railway Vikas Corporation Ltd.
and on my own behalf, I assure all members present and the Mumbai rail
commuters in particular that the Mumbai Railway Vikas Corporation Ltd. shall
spare no efforts in reaching the goals set out for it i.e. making rail travel convenient,
comfortable and safe for Mumbai commuters.
(A.K. Goyal)
Chairman / MRVC
(Note: This does not purport to be the proceedings of the Tenth Annual General Meeting).
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Directors’ Report
Gentlemen,
The Directors of Mumbai Railway Vikas Corporation Limited (MRVC) have great pleasure
in presenting the Tenth Annual Report on the business and operations of the Company
and Statements of Accounts for the year ended 31st March 2009.
(1) Financial Results :-
The salient features of the financial results of the Corporation for the year ended
31st March, 2009 are as under :
(Rupees in Lakhs)
Particulars Year Ended Year Ended
31.03.2009 31.03.2008
Income 3638.30 3295.15
Expenditure 1665.31 1044.13
Excess of Income over Expenditure before
prior period Items & Taxes 1972.99 2251.02
Less/Add - Prior period adjustment (Net) 209.58 (10.16)
Excess of Income over Expenditure for the year 1763.41 2261.19
Brought forward Surplus from previous year 6384.15 4122.96
Balance carried to Balance Sheet 8147.56 6384.15
Earnings per Share
(in Rupees) - Face Value of Share of Rs.1,000 789.20 900.41
No provision of Income Tax and Fringe Benefit Tax has been made since the Company
has obtained exemption under Section 12A of the Income Tax Act, 1961. Company
ploughs backs its surplus for the furtherance of the objectives of the Company within
a period of 5 years of accrual of such profit in compliance of Income Tax, 1961.
(2) Railway Infrastructure Projects :-
The list of projects being executed under MUTP along with the financial progress
of the projects is given at Annexure 'A'.
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(3) Works handled by MRVC:-
Some of the major works handled by MRVC during the year under review are as
follows:
(a) EMU procurement / manufacture:
So far, 61 twelve car EMU rakes have been manufactured by ICF, Chennai,
of which 56 have been received in Mumbai. As a result of this, 243
additional services on Western Railway and Central Railway have been
introduced. Also 252 services which were earlier run with 9-car have
been converted into 12-car on Central and Western Railways. With the
introduction of new EMU rakes in public service, there has been
reduction of more than 14% in the crowding in suburban trains.
(b) DC to AC Conversion:
All the four World Bank funded contracts for three traction substations
and 10 SPs/SSPs and cabling on Churchgate - Borivali section of Western
Railways are in progress and will be completed by December 2009. Till
date, 688 out of 924 Audio Frequency Track Circuits (AFTCs) have
been commissioned so far. Against AFTCs [ Package 2 ] contract, till date
109 AFTCs have been commissioned. Against the contract for provision
of Digital Axle Counters ( DACs), 163 out of 171 have been commissioned
so far.
(c) Procurement of EMU Bogies:
The contract for procurement of 108 new design EMU bogies has
been signed with M/s Siemens Transportation System GmBH & Co
KG, Graz, Austria on 18.12.2008 with the completion period of June
2010. These bogies will have higher deceleration, higher speed potential,
higher axle load and improved riding index.
(d) Performance of MoU 2008-09:
Based on the evaluation of performance MoU for the year 2008-09, the
rating of MRVC is ' Excellent '. This is the first time MRVC has
achieved the ' Excellent ' rating.
(e) Virar Car Shed:
For construction of Virar Car Shed, Earthwork, ground improvement
and boundary wall work is completed. Pile foundation work for building/
shed structures have also been completed. The work for providing
6 stabling lines for 12 Nos. of 12-car rakes is in progress and nearing
completion. For procurement of machinery and plant, notification of
award for supply of under floor wheel lathe issued on 30.12.2008,
contract agreement signed on 27.04.2009 with M/s S.A.S. Sculfort,
France.
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(f) 5th Line Mahim - Santacruz:
The work of providing underpass below the Western Express Highway
and lengthening of girders to permit laying of 5th & 6th lines on
Western Railways has been completed.
(g) Virar - Dahanu Road Track Center Work:
The new goods shed at Dahanu Raod has been commissioned as a part
of Virar-Dhanu Road Track Centre Work. This work is targeted for
completion by December 2009.
(h) Study for running 15-car trains:
MRVC had given a consultancy to M/S. RITES Ltd for running of 15-
car trains on Mumbai Suburban sections. The report has been
finalised and given to Western Railway for further action.
(i) MUTP Phase II works:
World Bank funded projects
MUTP Phase II has been divided into two parts, i.e. MUTP II - A and MUTP
II - B, MUTP II - A involves financing from the World Bank. The process for
procurement has already commenced. The progress of major infrastructure
works under MUTP Phase II is as follows:
(1) Extension of Harbour Line from Andheri to Goregaon
Two contracts covering earthwork / retain wall and extension of
bridges valuing Rs. 16.25 crore and Rs. 11.44 crore respectively
have been finalised in December 2008. Work has commenced.
Approximately 35,000 cum of earthwork, 100 Nos. of piles (500
mm) have been completed.
(2) Payment to M/s TATA
Payment of Rs. 9.80 crore for providing 110 Kv power at Sion
and Chinchpokali traction substation on Central Railway for
DC to AC Conversion under MUTP Phase II was made in
February 2009. This is the first expenditure incurred for MUTP
Phase II sanctioned in Railway Budget 2008 - 09.
(j) Visit of World Bank Supervision Mission
World Bank mission visited Mumbai from 13th to 21st July 2009 to
review the progress of MUTP works and also to review the preparation for
MUTP Phase II - A. All the required information were furnished to the
Mission. The Mission was satisfied with the progress of MUTP works.
Mr. Hubert Nove-Josserand, Sr. Urban Transport Specialist and Task
Team Leader, MUTP has also issued a letter dated 21.07.2009,
appreciating the commendable work done by MRVC during the year
2008-09. World Bank has assigned the rating of MRVC as 'Satisfactory'
which is highest rating given by them.
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(k) Awards for MRVC :
Following awards have been received by MRVC and MD / MRVC during
the year 2008 - 09:
Name of the Award Organisation Year
Safety Award 2008' The Institute of Engineers (India) 2008
Ramakrishna Bajaj National Indian Merchants' Chamber 2009
Quality Performance
Excellence Trophy-2008
in the Service category
'Life Time Achievement Award' Construction and Business 2009
Vishveshvaraiya Construction Records
Excellence Award 2008
Performance Excellence Indian Institute of Industrial 2009
Award- 2009 Engineering
International Excellence Institute of Economic Studies 2009
Award-2009
2009 International Business The Stevie Awards, 2009
Awards- Executive of the Fairfax, USA
Year ( Subcontinent)
(4) Change in the Board of Directors:
(i) Shri A.K. Goyal, Member Staff, Railway Board was appointed as Part-time
Chairman of MRVC w.e.f. 24.03.2009 vice Smt Sudha Choube who
superannuated on 01.12.2008.
(ii) Shri A.K. Tiwari, Additional Member (Planning), Railway Board, was appointed
as Part-time Official Director w.e.f. 12.01.2009 vice Shri R.K. Goyal, who
superannuated on 01.12.2008.
(iii) Shri Naresh Chandra, CELE, Western Railway was appointed as Director
(Technical) w.e.f. 14.10.2008, in place of Shri A.K. Malhotra, who was
transferred to Western Railways w.e.f. 01.10.2008.
(iv) Shri N.M. Misra, FA & CAO Central Railway, was appointed as Director (Finance)
w.e.f. 17.03.2009 vice Shri K.L. Dhingra who relinquished the office on account
of his appointment to the post of CMD of HUDCO w.e.f. 24.09.2007.
(5) Directors' Responsibility Statement:
In terms of Section 217 (2AA) of the Companies Act, 1956, it is stated:
(i) that in preparation of the Annual Accounts, the applicable accounting standards
have been followed along with proper explanation relating to material departure.
(ii) that the Company has selected such accounting policies and applied them
consistently and made judgements 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 Income and Expenditure account
of the company of that period.
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(iii) that the Company has 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.
(iv) that these Annual Accounts have been prepared on a going concern basis.
(6) Audit Committee:
The Audit Committee of the Board, inter-alia, provides reassurance to the Board
on the existence of an effective internal control environment.
The terms of reference of the Audit Committee as per the guidelines set out in
section 292 A of the Companies Act, 1956 and it inter-alia includes the following:
• To review compliance with internal control systems.
• To hold periodic discussions with the Statutory Auditors of the Company
concerning the accounts of the Company, internal control systems, scope of
audit and observations of the Auditors.
• To review the half-yearly and annual financial results of the Company before
submission to the Board.
• To make recommendations to the Board on any matter relating to the financial
management of the Company.
The Audit Committee comprises of Shri A.K. Tiwari, AM (Planning), Railway Board
& Part-time Official Director/MRVC as the Chairman of the Audit Committee,
Shri T.C. Benjamin, Principal Secretary-I, UDD, GoM, Part-time Official Director/
MRVC as the Member of the Audit Committee and Shri Naresh Chandra, Director
(Technical)/MRVC as Member Audit Committee, Shri Vijay Angane, Company
Secretary is the Secretary of the Committee. The composition of the Audit
Committee meets the requirements of Section 292 A of the Companies Act, 1956.
Meeting and attendance of the Audit Committee -
During the financial year ended 31.03.2009, three meetings of the Audit Committee
were held. The attendance of the Committee Members at the Meetings was as
follows:
Name of Member Status No. of Meetings No. of Meetings
Held Attended
Shri R.K. Goyal Chairman 2 2
(up to 30.11.2008)
Shri T.C. Benjamin Member 3 NIL
Shri A.K. Malhotra Member 2 2
(up to 30.09.2008)
Shri Naresh Chandra Member 1 1
Shri A.K. Tiwari Chairman 1 1
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(7) Auditors:
(i) M/s. Joshi Nair & Associates, Chartered Accountants, Mumbai were
appointed by the Comptroller & Auditor General of India, New Delhi as the
Statutory Auditors for MRVC Ltd. for the financial year 2008 - 09.
(ii) The Comptroller and Auditor General of India has entrusted the Govt. Audit
of Mumbai Railway Vikas Corporation Ltd. to the Principal Director of
Commercial Audit and Ex-officio Member, Audit Board - 1, Mumbai.
(iii) M/s. A.K. Sabat & Co., Chartered Accountants were appointed as the Internal
Auditors of MRVC Ltd. for the financial year 2008 - 09.
(8) Auditors' Report:
The Auditors have made observations in their report on annual accounts of the
company for the year ended 31.03.2009 and the same are replied/dealt with as
under:
Accounting for retirement benefit of employees on deputation from Indian Railways:
"The company has not provided retirement benefit on the basis of actuarial valuation
as prescribed under Accounting Standard - 15(AS-15) regarding Accounting for
Retirement Benefits issued by The Institute of Chartered Accountants of India
(ICAI). The company has provided for retirement benefits on estimated basis, as
per the Rules & Regulations of Indian Railways. In the absence of actuarial
valuation for retirement benefits we are unable to comment upon the adequacy of
the provision made by the company and its consequent impact on the excess of
income over expenditure of the company, reserve and surplus and liability as
stated in the financial statement".
Reply of Management of MRVC:
MRVC from the very beginning has been contributing to the retirement benefits
of employees on deputation to the respective railway authorities as per the
applicable rules and practice of Indian Railways and therefore actuarial valuation
is not carried out for employees on deputation from Indian Railways. Provision
made by the company in the accounts during the year 2008 - 09 towards Retirement
Benefits for deputationists from the Indian Railways is deemed to be adequate
and it has no significant impact on excess of income over expenditure of the
company, reserves and surplus and liabilities.
C & AG has also issued No Comments on the accounts of the Company for the
year ended 31st March, 2009 under section 619(4) of the Companies Act, 1956.
(9) Particulars of employees u/s 217(2A) of the Companies Act, 1956
During the year under review, the particulars of employees to be disclosed under
section 217(2)(A) of the Companies Act, 1956 and the Companies (particulars of
employees) Rules, 1975 and amendments thereof from time to time may be treated
as "Nil".
(10) Particulars relating to conservation of energy and technology absorption etc.:
The Company is presently engaged in providing services relating to executing the rail
infrastructure projects in Mumbai Suburban section under MUTP. It does not directly
contribute towards conservation of energy and as such the information under the
applicable provision u/s 217(1)(e) of the Companies Act, 1956 is not applicable.
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The Company has not earned any foreign exchange during the year under report.
The Company incurred an expenditure of Rs.1398.55 Lakhs (previous year
Rs.307.14 Lakhs) on account of payment towards capital goods for projects,
Rs.1400.87 Lakhs on consultancy, (previous year Rs.449.36 Lakhs) on travelling
Rs.14.01 lakhs (previous year Rs.32.02 Lakhs) and on others Rs.0.94 Lakhs
(previous year Rs.0.95 Lakhs) in foreign currency during the year.
(11) Corporate Social Responsibility (CSR) :
MRVC has been actively contributing in the area of Corporate Social
Responsibility in and around the periphery of Mumbai Suburban area. During
last 4 years, the Company's activities have gained momentum and the
following contributions by the Company has been made.
(i) Social Upgradation:
With removal of encroachments, 3.2 lakhs sq. meters. of encroached railway
land both on Central and Western Railways has been vacated. Resettlement
of 15,000 project affected households with proper houses was completed
by MRVC.
(ii) Energy Conservation and pollution control:
In the new design of EMU rakes, 25000V AC traction system is used. With
the electronic equipments, 25000V is converted to Variable Voltage Variable
Frequency AC supply, which is then fed to the 3 - Phase induction motors
fitted in the motor coaches. During braking, traction motors work as
generators and 30% of electric energy is pumped back to traction system
due to use of re-generative braking. It is estimated that when all the new
design trains are put into service, there will be energy saving of 20 Crore
units, which will enable less production of 20 Lakh tonne of CO2 emission
in the power stations. The World Bank has already identified this project
under "Clean Development Mechanism" for generation of carbon credits
under 'KYOTO PROTOCOL'. MRVC has been awarded gold medal for
"Excellence in Environment" for service category by Greentech Foundation,
New Delhi.
(iii) Noise Reduction:
With the use of step-less speed control and re-generative braking system,
jerks are avoided and noise levels have been brought down. By provision
of resilient spring mounting for the compressor and use of AC Carriage
forms, noise level in the coaches has been reduced significantly thus
improving overall environmental conditions.
(iv) Afforestation:
For laying of additional tracks between Borivali - Virar and Kurla - Thane,
3500 mangroves were cut. MRVC has taken up the responsibility to upgrade
the environment and planted 13,000 mangroves. The survivability of these
trees is checked every six months by the World Bank team and the survival
rate of such mangroves is 80%.
(v) Rain Water Harvesting:
MRVC is doing rain water harvesting in the resettlement colonies developed
by it for project affected people.
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(vi) Donation for Social Cause :
MRVC contributed Rs. 25 lakhs to Railway Minister's Relief Fund for the
flood affected victims of North Bihar.
(vii) Passenger Amenities Upgradation:
In order to bring tangible improvements in the EMU trains, after getting
feedback from the commuters the following additional features have been
added to improve the passenger amenities:
Improved Ventilation:
ASHRAE standard has been adopted by restricting the CO2 level inside the
coaches up to 700 ppm above ambient. In each coach, 15000 cu. m. of
fresh air is being pumped per hour. With this, the CO2 level has come
down from 2500 ppm to 1400 ppm. In addition, larger windows are also
provided to ensure better ventilation.
Improved illumination level inside the coaches:
The lighting inside the coaches has been improved to 300 lux from present
120 lux.
Improved Seats:
In place of wooden seats, polycarbonate seats have been provided inside
the coaches and seats with PU cushion have been provided in the first
class.
Passenger Information System:
GPS based passenger information system has been provided in all the
coaches with facilities like Automatic announcement of approaching stations
in three languages, i.e. Marathi, Hindi and English, Platform indicator,
Emergency announcement by control and LED based head code.
Pneumatic Suspension:
Pneumatic suspension has been used to improve the riding index.
Interiors:
To give aesthetic look and improve strength, stainless steel partition and
grab handles have been used inside the coaches and FRP interior panels
have been used.
Improved Colour Scheme:
Switched over new colour scheme with purple and white colour, with
polyurethane paint. The appearance of motorman's cabin has also been
improved for better visibility.
(12) Human Resources Management Review:
Looking to requirement of Manpower for both Phase - I & Phase - II, necessary
staff induction to the tune of 24% has been made in the organisation, which
dovetailed well within the performance parameters of MOU.
Skill upgradation and training has been a prime focus area in the organisation.
Officers and staff of MRVC as well as of Railways have been imparted training
under Supplier's Contract Provision, Technical Assistance Studies as well as
inhouse programmes. 25 Officials were sent for foreign training.
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Annual day celebrations, family get-togethers, women's day celebration, recognition
through various awards as well as on the spot award and open door policy of the
Management have kept the employee's morale high and have mustered a vibrant
team spirit.
(13) ISO Certification:
ISO 9001: 2000 certification has been obtained by MRVC. The process of obtaining
ISO 14001 - 2004 and 18001 - 2007 certification is under way and is expected
shortly.
(14) Employment of Women, Use of Official Language, etc.
There is adequate representation of women employees in the Company. Further
Company is following the guidelines of the Official Language Act. The Annual
Report is published bi-lingually in English and Hindi. The Company would
progressively increase the use in Hindi in accordance with the official
language policy of the Government. The officers and staff possess working
knowledge in Hindi for their day to day work. The Company had observed
'Hindi Pakhawada' during the period from 15th September, 2008 to 19th
September, 2008.
(15) Vigilance
MRVC observed Vigilance Awareness Week November 3 to November 7, 2008.
On this occasion essay competition on the topic "Efficiency and Transparency
in Public Spending" was launched with the prizes to winners. Debate was also
organised on the topic "Can India be free from corruption by 2020?"
In order to make speedy payment to Contractors and to bring transparency in
business dealing, the RTGS (Real Time Gross Settlement) is introduced in the
organisation. A Vigilance Newsletter "Prahari" was introduced by MRVC which
played an important role as an effective medium of communication amongst
the employees besides creating awareness on vigilance aspects. An anti-
corruption film "Say No To Corruption" was also made in-house for sensitising the
MRVC Officer & Staff.
(16) Acknowledgement:
The Board of Directors gratefully acknowledge the co-operation and guidance
received from the Ministry of Railways, Govt. of Maharashtra, MMRDA and the
Central and Western Railways from time to time.
The Board of Directors also place on record their appreciation of the valuable
services rendered by the officers and employees of the Corporation during the
year under review.
For and on behalf of the Board of Directors
(N.M. Misra) (P.C. Sehgal)
Place: Mumbai. Director (Finance) Managing DirectorDate : 26th August 2009
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Projects of MUTP (Rail Component)
1.0 Phase -I (In crores of Rupees)
Sr. Projects Original Cost Restructured Cumulative
No. Base Year Cost Expenditure
2001 upto 31-03-09
1. Provision of 5th Line Western Railway. 59.00 62.00 33.38
2. 5th & 6th line between Kurla - Thane. 166.00 222.80 168.13
3. Borivali - Virar Quadrupling. 436.00 505.00 539.35
4. Optimisation of Western Railway. 50.10 94.80 61.71
5. Optimisation of Central Railway. 99.50 102.85 55.76
6. Optimisation of Harbour Line. 19.70 21.80 5.90
7. DC to AC Conversion. 380.40 558.60 423.02
8. Virar Car Shed. 73.00 226.45 111.38
9. EMU Procurement/manufacture/
retrofitment. 1,359.20 1751.00 900.48
10. EMU Maintenance facilities. 64.30 63.20 48.12
11. Stabilising lines for EMUs. 48.50 54.20 35.39
12. Procurement of Track Machines. 31.30 36.50 36.61
13. Technical Assistance. 40.40 36.80 33.44
14. Resettlement & Rehabilitation. 290.00 410.00 410.57
15. Capital Expenditure for setting up of
MRVC. 7.79 28.40 0.54
Total 3,125.19 4174.40 2,863.78
2.0 Phase -II (In crores of Rupees)
Sr. Projects Original Cumulative
No. Cost Expenditure
upto 31-03-09
1. Kurla - CSTM 5th & 6th line. 659.00 –
2. Thane - Diva additional pair of lines. 133.00 –
3. Borivali - Mumbai Central 6th line. 522.00 –
4. Extension of Harbour Line to Goregaon. 103.00 1.96
5. DC to AC Conversion. 293.00 10.00
6. EMU Procurement/manufacture 2,930.00 –
7. EMU Maintenance facilities. 205.00 –
8. Stabilising Lines for EMUs. 141.00 –
9. Technical Assistance & Institutional Strengthening. 62.00 –
10. Resettlement & Rehabilitation. 124.00 –
11. Station Improvement & Trespassing Control. 128.00 –
TOTAL 5,300.00 11.96
ANNEX-A
( )
18
Auditors’ Report
TO THE MEMBERS OF MUMBAI RAILWAY VIKAS CORPORATION LIMITED
1. We have audited the attached Balance Sheet of MUMBAI RAILWAY VIKAS
CORPORATION LIMITED (the Company) as at 31st March 2009 and also the Income
and Expenditure Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with Auditing Standards generally accepted
in India. Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the
Companies (Auditor's Report) (Amendment) Order, 2004 (together the 'Order') issued
by the Central Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956 (the 'act') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to the
information and explanations given to us, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4. Attention is invited to Note No. (V) (a) of Schedule A regarding accounting for retirement
benefit of employees on deputation from Indian Railways, the company has not
provided retirement benefit on the basis of actuarial valuation as prescribed under
Accounting Standard - 15 (AS-15) regarding Accounting for Retirement Benefits
issued by The Institute of Chartered Accountants of India (ICAI). The company has
provided for retirement benefits on estimated basis, as per the Rules & Regulations
of Indian Railways. In the absence of actuarial valuation for retirement benefits we
are unable to comment upon the adequacy of the provision made by the company
and its consequent impact on the excess of income over expenditure of the company,
reserve and surplus and liability as stated in the financial statement.
5. Subject to our comments in paragraph 4 above, with consequential aggregate effects,
the quantification of which could not be determined on the excess of income over
expenditure for the year, reserves and surplus and the liability as at the balance
sheet date, we report that:
(i) We have obtained all the information and explanations, which to the best of
our knowledge and belief were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account as required by law have been kept by
the Company so far as appears from our examination of those books;
(iii) The Balance Sheet and Income and Expenditure Account dealt with by this
report are in agreement with the books of account;
19
(iv) In our opinion, the Balance Sheet and the Income and Expenditure Account
dealt with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
(v) We have been informed that the provisions of Section 274(1)(g) of the Companies
Act, 1956 are not applicable to a Government company in view of the notification
issued in this behalf: and
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the Significant
Accounting Policies in Schedule 'A' and
a) Note 11 of Schedule "B" regarding reliance being placed on audited /
unaudited statements pertaining to expenditure incurred on various
projects by Central Railway, Western Railway and Mumbai Metropolitan
Regional Development Authority (MMRDA), and the resultant Direction
and General Charges (D&G) and,
other Notes on Accounts in Schedule "B" thereon give the information required
by the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as
at 31st March, 2009; and
(b) in the case of the Income and Expenditure Account, of the excess of
income over expenditure of the Company for the year ended on that
date.
For Joshi Nair & Associates.
Chartered Accountants
H.G.Nair
Place : Mumbai (Partner)
Date : 30th June 2009. Mem. No. 39546
20
Annexure To Auditors’ Report
(Referred to in paragraph 3 of our report of even date to the members of Mumbai
Railway Vikas Corporation Limited on the financial statements for the year
ended 31st March, 2009)
(i) (a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, all the assets have
been physically verified, at intervals, by the management during the year,
which in our opinion is reasonable, having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on such
verification.
(c) In our opinion, a substantial part of the fixed assets has not been disposed
off by the company during the year.
(ii) The company in the normal course of business does not hold any inventory.
Accordingly clause 4(ii) of the Order is not applicable.
(iii) (a) The company has not granted any loan, secured or unsecured to companies,
firms or other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Accordingly sub-clauses (a), (b), (c), and (d) of clause
4(iii) of the Order are not applicable.
(b) The Company has not taken any unsecured loan from companies covered in
the register maintained under Section 301 of the Companies Act, 1956.
Accordingly sub-clauses (e), (f) and (g) of clause 4(iii) of the Order are not
applicable.
(iv) In our opinion and according to the information and explanations given to us,
there is adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of fixed assets,
inventory for project and sale of services. The activities of the Company do not
involve sale of goods. Further, on the basis of our examination of the books and
records of the Company, and according to the information and explanations given
to us, we have neither come across nor have been informed of any instance of
major weaknesses in the aforesaid internal control system.
(v) (a) In our opinion and according to the information and explanations given to us,
there were no transactions that need to be entered into the register to be maintained
under section 301 of the Companies Act, 1956. Accordingly sub-clause (b) of clause
4(v) of the order is not applicable.
(vi) The Company has not accepted any deposits from public within the meaning of the
provisions of Sections 58A and 58AA or any other relevant provisions of the act,
and the rules framed there under. Accordingly clause 4(vi) of the Order is not
applicable.
(vii) In our opinion, the Company has an adequate internal audit system commensurate
with the size and nature of its business.
21
(viii) According to the information and explanations given to us, the Central Government
has not prescribed the maintenance of cost records under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956 in respect of services carried by the
Company.
(ix) (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 generally regular in
depositing the undisputed statutory dues including provident fund, investor
education and protection fund, employee's state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other material statutory
dues as applicable, with the appropriate authorities. Based on our audit procedure
and according to the information and explanations given to us, no undisputed
dues payable in respect of provident fund, investor education and protection fund,
employee's state insurance, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess were in arrears, as at 31st March, 2009 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues
in respect of income tax, wealth tax, service tax, sales tax, customs duty,
excise duty and cess which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses and has not incurred any cash losses
during the current financial year and in the immediately preceding financial year.
(xi) The Company has neither taken any loans from a financial institution, bank nor
issued any debentures. Accordingly clause 4(xi) of the Order is not applicable.
(xii) The Company has not granted loans and advances on the basis of security by way
of pledge of shares, debentures and other securities. Accordingly clause 4(xii) of
the Order is not applicable.
(xiii) The Company is not a chit fund, nidhi or mutual fund or a society. Accordingly
clause 4(xiii) of the Order is not applicable.
(xiv) According to the information and explanation given to us, the company is not
dealing or trading in shares, securities, debentures and other investments.
Accordingly clause 4(xiv) of the Order is not applicable.
(xv) According to the information and explanation given to us, the company has not
given any guarantee for loans taken by others from bank or financial institutions.
Accordingly clause 4(xv) of the Order is not applicable.
(xvi) The Company has not taken any loans. Accordingly clause 4(xvi) of the Order is
not applicable.
(xvii) The Company has not raised any funds. Accordingly clause 4(xvii) of the Order is
not applicable.
(xviii) According to the information and explanations given to us, the company has not
made any preferential allotment of shares to parties and companies covered in the
register maintained under section 301 of the Act. Accordingly clause 4(xviii) of the
Order is not applicable.
22
(xix) The company has not issued any debentures. Accordingly clause 4(xix) of the Order
is not applicable.
(xx) The company has not raised any money by public issue during the period.
Accordingly clause 4(xx) of the Order is not applicable.
(xxi) During the course of our examination of the books of account 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 instance of material fraud on or by the Company, noticed
or reported during the year, nor have we been informed of such case by the
management.
For Joshi Nair & Associates.
Chartered Accountants
H.G.Nair
Place : Mumbai (Partner)
Date : 30th June 2009. Mem. No. 39546
23
The preparation of financial statements of Mumbai Railway Vikas
Corporation Limited for the year ended 31 March 2009 in accordance
with the financial reporting framework prescribed under the Companies
Act, 1956 is the responsibility of the management of the company. The
statutory auditor appointed by the Comptroller and Auditor General of
India under section 619(2) of the Companies Act, 1956 is responsible
for expressing opinion on these financial statements under section 227
of the Companies Act, 1956 based on 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 30
June 2009.
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 Mumbai Railway
Vikas Corporation Limited for the year ended 31 March 2009. This
supplementary audit has been carried out independently without access
to the working papers of the statutory auditor and is limited primarily
to inquiries of the statutory auditor and company personnel and a
selective examination of some of the accounting records. On the basis
of my 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 behalf of the
Comptroller and Auditor General of India
(ALKA R BHARDWAJ)
Principal Director of Commercial Audit and
Ex-Officio Member, Audit Board - I, Mumbai.
Place : Mumbai
Date : 26th August 2009
Comments of the C & AG of India
omments Of The Comptroller And Auditor General Of IndiaUnder Section 619 (4) Of The Companies Act, 1956 On TheAccount Of Mumbai Railway Vikas Corporation Limited ForThe Year Ended 31 March 2009.
C
24
Particulars Sch. As at As at
No. 31.03.2009 31.03.2008
Rs. Rs. Rs.
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 25,00,00,000 25,00,00,000
Reserves and Surplus 2 81,47,56,377 63,84,14,985
Unsecured Funds For Projects
Total MUTP Funds Received 3 3084,49,12,078 2173,04,52,967
Less : Total MUTP Funds Utilised 2875,73,98,746 1913,56,65,612
208,75,13,332 259,47,87,355
TOTAL 315,22,69,709 348,32,02,340
APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 3,68,22,178 2,71,18,377
Less: Depreciation 1,23,41,071 98,25,258
Net Block 2,44,81,107 1,72,93,119
Add: Capital Work in Progress 21,28,24,462 11,58,16,470
23,73,05,569 13,31,09,589
Current Assets, Loans and Advances
Cash and Bank Balances 5 230,89,67,601 302,76,18,621
Loans and Advances 6 476,92,35,437 234,08,39,293
SUB TOTAL (A) 707,82,03,038 536,84,57,914
Less:
Current Liabilities and Provisions 7
Current Liabilities 416,27,74,087 201,82,17,735
Provisions 5,94,011 4,05,828
SUB TOTAL (B) 416,33,68,098 201,86,23,563
Net Current Assets (A-B) 291,48,34,940 334,98,34,351
Miscellaneous Expenditure
(to the extent not written off
or adjusted.) 8 1,29,200 2,58,400
TOTAL 315,22,69,709 348,32,02,340
Balance Sheet as at 31st March, 2009
The schedules referred to above and the notes attached form an integral part of the Accounts
As per our report of even date
For Joshi Nair & AssociatesChartered Accountants For and on behalf of Board of Directors
MUMBAI RAILWAY VIKAS CORPORATION LTD.
(H.G.Nair) (N.M.Misra) (P C Sehgal)Partner Director (Finance) Managing Director
Place: Mumbai (Vijay Angane)Date: 30th June 2009. Company Secretary
25
Income & Expenditure Account ForThe Year Ended 31.03.2009
Particulars Sch. Year Ended Year Ended
No. 31.03.2009 31.03.2008
Rs. Rs.
INCOME
Service Revenue :
Direction and General charges 10,45,90,000 5,14,37,180
Other income :
Interest Income from Bank 25,67,43,481 27,58,32,400
(TDS Rs.2,60,59,551/- ;
Previous year Rs. 5,94,55,181/-)
Other Interest
(TDS Rs. Nil : Previous year Rs. Nil) 63,460 1,82,290
Miscellaneous Income 24,33,084 20,63,236
TOTAL 36,38,30,025 32,95,15,106
EXPENDITURE
Establishment Expenses 9 11,00,11,191 5,37,22,114
Administrative and Operational Expenses 10 4,71,08,900 4,86,74,230
Depreciation 25,23,687 18,87,548
Interest 67,58,053 0
Preliminary Expenses Amortised 1,29,200 1,29,206
Total 16,65,31,031 10,44,13,098
EXCESS OF INCOME OVER EXPENDITURE 19,72,98,994 22,51,02,008
FOR THE YEAR
Less /(Add): Prior Period Adjustments (Net) 11 2,09,57,602 (10,16,797)
EXCESS OF INCOME OVER EXPENDITURE 17,63,41,392 22,61,18,805
Brought forward surplus from Previous year 63,84,14,985 41,22,96,180
Balance carried to Balance Sheet 81,47,56,377 63,84,14,985
Earnings per Share (Basic and Diluted) 789.20 900.41
The schedules referred to above and the notes attached form an integral part of the Accounts
As per our report of even date
For Joshi Nair & Associates For and on behalf of Board of DirectorsChartered Accountants MUMBAI RAILWAY VIKAS CORPORATION LTD.
(H.G.Nair) (N.M.Misra) (P C Sehgal)Partner Director (Finance) Managing Director
Place: Mumbai (Vijay Angane)Date: 30th June 2009. Company Secretary
26
SCHEDULE 1
As at As at
31.03.2009 31.03.2008
Rs. Rs.
SHARE CAPITAL
AUTHORISED SHARE CAPITAL
2,50,000 Equity shares of Rs.1000/- each 25,00,00,000 25,00,00,000
ISSUED , SUBSCRIBED AND PAID UP
2,50,000 Equity shares of Rs.1000/- each fully paid up 25,00,00,000 25,00,00,000
Total 25,00,00,000 25,00,00,000
Of the above, following equity shares were allotted to :
Ministry of Railways (127,500 Equity Shares) 12,75,00,000 12,75,00,000
Government of Maharashtra (122,500 Equity Shares) 12,25,00,000 12,25,00,000
Total 25,00,00,000 25,00,00,000
SCHEDULE 2
As at As at
31.03.2009 31.03.2008
Rs. Rs.
RESERVES AND SURPLUS
Income and Expenditure Account
Opening Balance 63,84,14,985 41,22,96,180
Add: Transfer during the year 17,63,41,392 22,61,18,805
Total 81,47,56,377 63,84,14,985
Schedules Forming Part OfBalance Sheet As At 31.3.2009
27
SCHEDULE 3
UNSECURED FUNDS FOR PROJECTS
As at As at31.03.2009 31.03.2008
Rs. Rs.
Opening Balance 2173,04,52,967 1734,13,09,585
Amount Received From :
Ministry of Railways @ 533,13,31,169 248,69,38,619
Government of Maharashtra :
Rehabilitation and Resettlement * 5,30,76,000 3,20,25,000
MUTP (Rail Component) @ 333,91,42,467 147,04,22,845
Surcharge Adjusted Towards Dues 39,09,09,475 39,97,56,918
Total 911,44,59,111 438,91,43,382
Total MUTP Funds Received (A) 3084,49,12,078 2173,04,52,967
Amount Utilised/Adjusted
Opening Balance 1913,56,65,612 1550,20,08,326
Amount Spent By :
Western Railway 93,01,44,860 67,70,56,934
MMRDA * * 5,36,07,000 3,23,45,250
Central Railway 130,30,01,000 61,12,94,480
Mumbai Railway Vikas Corporation # 733,49,80,274 231,29,60,622
TOTAL 962,17,33,134 363,36,57,286
Total MUTP Funds Utilised (B) 2875,73,98,746 1913,56,65,612
Unsecured Funds for Project (A - B) 208,75,13,332 259,47,87,355
Schedules Forming Part OfBalance Sheet As At 31.3.2009
* An amount equal to 5% of Rehabilitation & Resettlement Expenditure has been included as
Direction, Supervision & Management (DSM) charges.
** An amount equal to 1% of Rehabilitation & Resettlement Expenditure has been included as
Direction & General Charges.
# Includes Rs. 211,82,84,934/- paid directly and an amount equal to Rs. 15,48,34,371/- is in
process of payment by World Bank to the Suppliers.
@ An equal amount of Rs. 105,91,42,467/- is included both in Ministry of Railway (MoR) and
Government of Maharastra (GoM) on account of payment made by the World Bank on behalf
of MoR and GoM directly to the Suppliers.
28
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29
SCHEDULE 5 - CASH AND BANK BALANCES
As at As at
31.03.2009 31.03.2008
Rs. Rs.
Cash in hand 49,877 61,621
Balances with Banks
In Scheduled Banks
a) In Current Accounts 94,18,001 63,93,136
b) In Term Deposit Account 229,94,99,723 302,11,63,864
TOTAL 230,89,67,601 302,76,18,621
SCHEDULE 6- LOANS AND ADVANCES
As at As at
31.03.2009 31.03.2008
Rs. Rs.
(Unsecured, considered good)
Advances recoverable in cash or in kind or
for the value to be received 93,23,16,686 46,21,28,839
Share of Surcharge due from
Central Railway 3,85,01,596 5,86,86,417
Western Railway 3,20,00,355 2,44,18,871
Balance with Railway
Central Railway 89,85,79,395 7,15,18,756
Western Railway 221,43,87,870 166,26,00,398
ICF Chennai (Souhthern Railway) 56,59,03,972 0
Tax Deducted at Source 8,75,45,563 6,14,86,012
TOTAL 476,92,35,437 234,08,39,293
Schedules Forming Part 0fBalance Sheet As At 31.3.2009
30
SCHEDULE 7 - CURRENT LIABILITIES AND PROVISIONS
As at As at
31.03.2009 31.03.2008
Rs. Rs.
CURRENT LIABILITIES :
Sundry Creditors 302,49,61,022 183,89,10,528
Other Liabilities 83,72,84,015 3,51,64,745
Liability towards share of sucharge collected
(On behalf of Government of Maharashtra) 39,09,09,475 39,97,56,918
Less : Adjusted towards Project Fund due 39,09,09,475 39,97,56,918
from Government of Maharashtra
– –
Temporary book overdraft 30,05,29,050 14,41,42,462
(A) 416,27,74,087 201,82,17,735
PROVISIONS :
- Gratuity 5,94,011 4,05,828
(B) 5,94,011 4,05,828
SCHEDULE 8 - MISCELLANEOUS EXPENDITURE
As at As at
31.03.2009 31.03.2008
Rs. Rs.
(to the extent not written off or adjusted)
Preliminary expenses :
Opening balance 2,58,400 3,87,606
Less : Amortised during the year 1,29,200 1,29,206
1,29,200 2,58,400
Schedules Annexed to and Forming Partof Balance Sheet As At 31.3.2009
31
Schedules Forming Part Of Income andExpenditure Account For The Year Ended31.03.2009
SCHEDULE - 9- ESTABLISHMENT EXPENSES
Year ended Year ended
31.03.2009 31.03.2008
Rs. Rs.
Salary, Wages & Allowances 10,71,04,821 5,06,91,409
Contribution to Provident Fund and Employees State
Insurance Scheme 4,02,765 4,42,802
Gratuity Provision (in respect of employees on contract) 1,92,289 91,653
Staff Welfare Expenses 23,11,316 24,96,250
11,00,11,191 5,37,22,114
SCHEDULE - 10 - ADMINISTRATIVE & OPERATIONAL EXPENSES
Year ended Year ended
31.03.2009 31.03.2008
Rs. Rs.
Electricity Expenses 21,76,935 17,45,464
Repair and Maintenance
Office Premises 20,78,004 6,97,487
Others 7,31,788 7,61,620
28,09,792 14,59,107
Advertisement Charges 40,89,370 80,52,011
Auditor's Remuneration
(includes Service Tax)
Statutory Audit Fees 1,04,785 95,506
Tax Audit Fees 27,575 22,472
Vat Audit Fees 16,545 0
1,48,905 1,17,978
Rent Rates and Taxes 14,21,463 14,23,107
Insurance 87,077 33,568
Travelling and Conveyance 98,31,767 1,80,93,622
Vehicle Expenses 81,76,953 46,70,101
Communication Expenses 27,79,726 28,77,805
Training and Seminar expenses 36,14,795 4,62,832
Printing and Stationary 29,89,414 20,28,059
Hospitality Expenses 19,14,847 15,28,010
Legal and Professional Fees 18,73,192 30,30,610
Director's Sitting fees 25,000 25,000
Loss on Discarded Assets 0 93,737
Books and Periodicals 1,04,864 1,32,453
Security services 5,06,504 6,19,696
Bank Charges 1,21,592 1,21,533
Donation for Bihar Flood Victims 25,00,000 0
Miscellaneous Expenses 19,36,704 21,59,537
Total 4,71,08,900 4,86,74,230
32
Schedules Forming Part Of Income andExpenditure Account For The Year Ended31.03.2009
SCHEDULE - 11 - PRIOR PERIOD ADJUSTMENTS (Net)
Year ended Year ended
31.03.2009 31.03.2008
Rs. Rs.
AITD 1,50,000 0
BSNL 362
Prior Period Imprest 71
Salary (1,363) 0
Air Travel Domestic 35,207 27,927
Income Tax Consultancy (77) 2,642
Repairs and Maint Computer 72,606 13,546
Repairs and Maint Office Equip (5,670) 5,324
Repairs and Maint Office Premises 13,268 0
Renewal of Insurance 0 16,955
Electricity Charges (355) 256
Ex-Gratia (21,686) 0
Books and Periodical 138 545
Training Charges 0 (5,000)
Seminar Expenses 0 4,000
Outstanding Exp 5,600 1,900
MTNL 476 (1,881)
Repairs - Vehicle 8,260 0
Contractor Service 18,539 0
Telephone Charges 0 999
Hotel Lodging Charges (79,066) 0
Membership Charges 0 (15,660)
Medical Reimbursed (4,200) 0
Refund of Rent 0 (8,000)
Advertising Charges 4,58,565 0
Lease Rent 0 27,000
Prior Period Expenses (3,270) 0
Advance Recoverable in Cash or in Kind 2,01,133 0
HRA Payable 41,461 (8,93,937)
Foreign Services Payable 0 (2,41,351)
Rent of Office Premises 0 10,755
R&R Exp 0 36,750
Vat Liabilities 1,697 0
Direction & General Charges 81,77,000 0
Interest Paid to CAAA, New Delhi 1,18,89,339 0
Total 2,09,57,602 (10,16,797)
33
SCHEDULE – A
SIGNIFICANT ACCOUNTING POLICIES
(i) Basis of Preparation of Accounts
The accounts have been prepared using historical cost convention and on going
concern basis in accordance with the Generally Accepted Accounting Principles
(GAAP) in India on the accrual basis and in accordance with the Accounting
Standards referred to in Section 211(3C) and other requirements of the Companies
Act, 1956. Insurance and other claims are accounted for as and when admitted by
the appropriate authorities.
The preparation of financial statements requires the management of the company
to make estimates and assumptions that affect the reported amounts of incomes
and expenses of the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the financial statement.
Wherever changes in presentation are made, comparative figures of previous years
are regrouped accordingly.
(ii) Fixed Assets
Fixed Assets are stated at Cost less accumulated depreciation.
Fixed Assets are eliminated from the financial statements either on disposal or
when retired from active use. Such assets are removed from the fixed asset records
on disposal. Generally such retired assets are disposed off soon thereafter.
Expenditure relating to existing fixed assets is added to the cost of the fixed asset
where it increases the performance / life of the asset as assessed earlier.
The Carrying amount of assets is reviewed at each balance sheet date for indicators
of impairment based on internal/external factors. An impairment occurs when the
carrying value exceeds the present value of the future cash flows expected to arise
from the continuing use of the assets and its eventual disposal. The impairment
loss to be expensed is determined as the excess of the carrying amount over the
higher of the assets' net sales price or present value as determined above.
(iii) Depreciation
Depreciation has been provided on Straight Line Method at the rates prescribed in
Schedule XIV of the Companies Act, 1956 and on pro-rata basis from the date of
addition in respect of additions during the year.
Significant Accounting Policies
34
Depreciation on assets, the individual cost of which does not exceed five thousand
rupees are provided at the rate of 100% in the year put to use.
(iv) Foreign Exchange Transactions
Expenditure incurred in foreign currency is accounted at the rates prevalent at the
time when expenditure is incurred.
Foreign currency current assets and liabilities are converted at the contracted /
year-end rate, as applicable.
Exchange difference on account of acquisition of fixed assets is expensed through
Income and Expenditure Account. The Exchange difference arising for Project
expenditure is transferred to the respective project. Other exchange differences
are recognized in the Income and Expenditure Account.
The transaction date and invoice date is different due to routing of Invoice through
various departments/division for approval. Company is regularly and consistently
following the same accounting policy.
(v) Retirement Benefits
a) Retirement benefits in respect of employees on deputation from Indian
Railways are provided as per the rules and regulations applicable to the Indian
Railways.
b) Retirement benefits in respect of employees on contract are provided as per
actuarial valuation.
(vi) Preliminary Expenses
The provision of revised Accounting Standard (AS-26 Intangible Assets) applies to
Preliminary expenses incurred on or after 01/04/2004. Since Preliminary Expenses
are incurred before 01/04/2004, the company has, as per its original policy
amortized Preliminary Expenses over a period of ten years from the year of
incorporation.
(vii) Revenue Recognition
a) The Company provides for Direction and General Charges (D&G) at specified
percentage of expenses incurred on projects executed by the company and as
per the Memorandum of Understanding (MOU) signed between MRVC and
Government of India / Government of Maharashtra acting through Central
and Western Railway and Mumbai Metropolitan Regional Development Authority
35
(MMRDA) and as certified by them on the ongoing Mumbai Urban Transport
Projects (MUTP).
b) Interest on Term Deposits is accrued as per schemes of various Banks with
whom the deposits have been placed.
(viii) Project Accounting
The amount spent on projects, which are being implemented by the Company
and covered by separate budgetary allocation in the budget for Indian Railways
and contribution from Government of Maharashtra, are accounted for as "MUTP
Funds Utilized" and miscellaneous receipts on account of sale of tender
documents are reduced from the project funds utilized and share of surcharge
received on tickets issued by Indian Railways pertaining to the Government of
Maharashtra (GOM) is disclosed as MUTP funds received from GOM. In respect
of projects executed by MRVC, miscellaneous receipts on account of sale of
tender documents are treated as miscellaneous income and credited to Income
& Expenditure account
(ix) Prior Period and Extraordinary Items
Income and expenditure pertaining to prior period as well as extraordinary items,
where material and affecting the operating results are disclosed separately.
(x) Contingencies and Events occurring after the Balance Sheet date
Accounting for contingencies (gains and losses) arising out of contractual obligations
are made only on basis of mutual acceptance.
Where material events occurring after the date of balance sheet are considered
upto the date of approval of accounts by the Board of Directors.
(xi) Assets of Mumbai Urban Transport Project (MUTP) - Rail Component
MUTP consists of various works, out of which the works pertaining to the rail
component are being executed by different agencies e.g. Western Railway, Central
Railway and MRVC. To execute these works MRVC either gives advance payment
to these agencies or alternatively the amounts spent by these agencies are
reimbursed to them on regular basis.
According to the agreement-dated 13.09.2002 entered by MRVC with Ministry of
Railway (MOR) all the operating assets of Rail Component under MUTP would be
the property of Indian Railways only. Hence all the assets, which are created under
36
the MUTP (Rail Component Division), whether directly by MRVC or through Western
Railway and Central Railway are the property of the Indian Railways, and hence
does not form part of Fixed Assets of the Company.
The amount spent by MRVC directly and through the different agencies viz. Western
Railway and Central Railway has been disclosed in Schedule 3 as "Unsecured Funds
for Projects" under the head "Amount Utilised / Adjusted".
(xii) Construction of Residential Quarters for staff
MRVC is constructing houses for staff on the land provided by Railway. As per
Railway's guidelines, the ownership of the land and flats will continue to remain
with the Indian Railways and MRVC will bear the entire cost of construction of the
flats. Fifty percent houses would be leased to MRVC for a period of 30 years at
nominal license fee of INR 1,000/- (Rupees One Thousand Only) per annum per
house. The cost of construction of the flats on completion of construction would be
capitalized as "Leased Flats" to be amortised over the period of the lease. INR
21,28,24,462/- is spent upto the balance sheet date which is shown as Capital
WIP under Fixed Assets.
37
SCHEDULE B :
NOTES TO ACCOUNTS
1. No provision for Income tax and Fringe Benefit Tax has been made since the company
has obtained exemption under section 12A of the Income Tax Act.
2. The Director of the Office of the Principal Director of Commercial Audit & Ex-
Officio Member Audit Board-I had vide letter dated 6th December 2006, to the
company, advised that the Company get an opinion from the Expert Advisory
Committee of the Institute of Chartered Accountants of India (ICAI) as regards the
treatment of projects being executed by the company departmentally only or
including the deposit works executed through Western Railway, Central Railway
and MMRDA. The Company has accordingly forwarded the matter to the Expert
Advisory Committee of ICAI. The opinion from the Expert Advisory Committee, has
been received by the company on 04.02.2009. Expert Advisory Committee has
suggested the accounting treatment on the basis of "Flow of the economic benefit
or Service potential of the asset created in the project". The accounting policy
adopted by the company is correct and in line with the opinion of the committee as
the economic benefit of the asset created after completion of the project will flow to
the Indian railways as per agreement dated 13.09.2002 to whom the asset will be
transferred.
3. The Company does not operate with a profit motive and based on the opinion of two
Chartered Accountant Firms, Income and Expenditure Account is prepared in lieu
of Profit and Loss Account.
4. The company has acquired an office premises under an operating lease deed vide
dated 28.6.2001, 01.04.2004, 06.09.2004 of lessor (Western Railways) wherein
the tenure of the lease is not mentioned.
5. The company has provided House Rent Allowance (HRA) of INR 60,00,000/- &
Foreign Services Contribution (FSC) OF INR 1,45,00,000/- on estimated basis
towards terminal benefits of the Indian Railways employees working on deputation.
6. No provision for Deferred Tax in accordance with Accounting Standard - 22 issued
by the Institute of Chartered Accountants of India has been made in the accounts,
since the Company has obtained exemption under section 12 A of the Income Tax
Act.
7. Salary and Allowances includes INR 2,43,14,486/- due to VIth Pay Commission
out of which 40% is paid during the current year and 60% is due in financial year
2009-10 which is provided in the books on the basis of Notification RBE No.: 103/
2008 given by Ministry of Railways dated 04.09.2008.
8. During the year the company has reduced Direction & General Supervision Charges
by INR 81,77,422/- due to absence of clause in MOU between MRVC & ICF, Chennai
for EMU Project. The same has been adjusted in the Prior Period.
Notes To Accounts
38
9. During the year company has donated INR 25,00,000/- towards Bihar Flood Relief
Fund.
10. Particulars of remuneration paid to Directors are as under:
(In Rupees)
Particulars As at As at
31.03.2009 31.03.2008
Salary and Allowances* 34,06,201 23,98,351
Contribution to Railways
(Towards Terminal Benefits) 8,02,869 4,64,779
Others 20,000 30,800
Total 42,29,070 28,93,930
* includes INR.2,83,767/- due to VIth Pay Commission.
11. The Expenditure incurred by Central Railway, Western Railway, and Mumbai
Metropolitan Regional Development Authority (MMRDA) have been accounted based
on the respective audited / un-audited statements received from the respective
zones. The Direction and General Charges are computed and accounted based on
the expenditure as mentioned above.
12. Expenditure in Foreign Currency is as under:
(In Rupees)
Particulars As at As at
31.03.2009 31.03.2008
Capital goods for projects (C I F Basis) 13,98,55,250 3,07,13,676
Consultancy (Net of TDS) 14,00,86,898 4,49,36,402
Traveling 14,01,043 32,02,389
Others 94,310 94,503
13. a) As per the information available with the Company, there are no outstanding
dues payable to any Small Scale Industrial Undertaking as at 31st March
2009.
b) The company has not received any information from suppliers regarding their
status under the Micro, Small and Medium Enterprise Development Act, 2006
and hence disclosures, if any, relating to amount unpaid as at the year end
together with interest paid / payable as required under the said Act have not
been furnished.
14. The estimated amount of contracts remaining to be executed by MRVC (excluding
the contracts being executed by the Central Railway, Western Railway & MMRDA)
on capital account and not provided for (net of Advances) INR 771,02,83,571/-
(Previous year INR 632,31,01,525/-).
39
15. Loans and Advances include loan given to director amounting INR 13,340/- (Previous
Year INR 66,668). Maximum outstanding during the year is INR 66,668/- (Previous
Year INR 2,69,963/-).
16. The following are the disclosures in respect of the calculation of earning per share
for the year ended 31st March 2009.
Particulars 31.03.2009 31.03.2008
Numerator :
Excess of Income over Expenditure after
tax and before Prior Period Items (INR) 19,72,98,994 22,51,02,008
Denominator :
Weighted Average number of equity
share (Nos) 2,50,000 2,50,000
Earnings per Share (Basic and Diluted)
(INR)=Numerator/Denominator 789.20 900.41
17. The balances shown under the head of Loans and Advances and Current Liabilities
are subject to confirmation and reconciliation, if any.
18. Additional information pursuant to provisions of paragraph 3, 4C and 4D of Part II
of Schedule VI of the Companies Act, 1956 have been given to the extent applicable
to the business of the Company.
As per our report of even dateFor Joshi Nair & Associates For and on behalf of Board of DirectorsChartered Accountants MUMBAI RAILWAY VIKAS CORPORATION LTD.
(H.G.Nair) (N.M.Misra) (P C Sehgal)Partner Director (Finance) Managing Director
Place: Mumbai (Vijay Angane)Date: 30th June 2009. Company Secretary
40
Balance-sheet Abstracts and Company's General Business Profile :-
(i) Registration No. : 11-120765
Balance-sheet Date: : 31.03.2009
State Code : 11
(ii) Capital raised during the year (Amount in Rs. thousands)
(a) Public - Nil
(b) Rights - Nil
(c) Bonds - Nil
(d) Private Placement - Nil
(iii) Position of Mobilization and Deployment of Funds (Amount in Thousands Rs.)
Total liabilities 7315638
Total Assets 7315638
Sources of Funds
Paid up Capital 250000
Reserves & Surplus 814756
Unsecured Funds for project 2087513
Secured Loans Nil
Unsecured Loans Nil
Application of Funds
Net Fixed Assets 237306
Net Current Assets 2914835
Misc. Expenditure 129
(iv) Performance of the Company (Amount in Thousands Rs.)
Service Revenue 104590
Other Income 259240
Total Expenses 166531
Profit before Tax 197299
Tax adjustments of earlier years –
Profit after Tax 197299
Earning per share 789.20
Dividend Rate % Nil
(v) General Names of Principal Not Applicable
product