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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