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Annual Report2010-2011
Delhi Metro Rail Corporation Ltd.Registered office
Metro Bhawan, Fire Brigade laneBarakhamba Road, New Delhi-110001, India Phone No-23417910/12; Fax No-23417921
Contents
Board of Directors 3-4
Chairman's Letter to Shareholders 5-6
Director Report 7-13
Corporate Governance Report 14-18
Annual Accounts 19-41
Cash Flow Statements 42
Balance Sheet Abstract and Company's General Business Profile 43
Auditor's Report 44-46
Comments of Comptroller and Auditor General of India 47-48
STATUTORY AUDITORSM/s S. N. Nanda & Co.Chartered AccountantsNew Delhi
Company SecretaryA. K. Garg
Registered Office:Delhi Metro Rail Corporation Ltd.Metro Bhawan, Fire Brigade Lane, Barakhamba RoadNew Delhi-110001, IndiaBoard No.- 23417910/12Fax No.- 23417921Website: www.delhimetrorail.com
3
Board of Directors
Shri Sudhir Krishna ChairmanDMRC Ltd. & Secretary (UD),MOUD, Nirman Bhawan, New Delhi-110011
Shri E. Sreedharan Managing DirectorDMRC Ltd. Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi-110001
Shri P. K. Tripathi DirectorDMRC Ltd & Chief Secretary Govt. of NCT of DelhiVth Level, Delhi Sachivalaya I. P. Estate, New Delhi-110002
Shri A. P. Mishra DirectorDMRC Ltd & Member (Engineering) Railway BoardMinistry of Railway, Rail Bhawan, New Delhi-110001
Smt. Vilasini Ramachandran DirectorDMRC Ltd & Special Secretary (Expend.) Ministry of Finance, Deptt. of Expenditure, New Delhi-110001
Shri G. S. Patnaik DirectorDMRC Ltd. & Vice Chairman, DDA, Vikas Sadan,New Delhi-110023
Shri R. C. Mishra DirectorDMRC Ltd & Addl. Secretary, (UD), MOUD, Nirman Bhawan,New Delhi-110011
Shri R. Chandramohan DirectorDMRC Ltd & Principal Secretary-cum-Commissioner (TPT.) GNCTD, Transport Department, 5/9, Underhill Road, Delhi-110054
Shri D. M. Spolia DirectorDMRC Ltd & Principal Secretary (Finance), Govt of NCT of Delhi,IVth Level, Delhi Sachivalaya, IP Estate, New Delhi-110002
Shri Ramesh Chandra DirectorDMRC Ltd, F-6/3, 1st Floor, Vasant Vihar,New Delhi.
Shri Satish Kumar Director (Electrical)DMRC Ltd., Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi - 110001
Shri R. N. Joshi Director (Finance)DMRC Ltd., Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi - 110001
Shri Raj Kumar Director (Operation)DMRC Ltd., Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi - 110001
Shri H. S. Anand Director (Rolling Stock)DMRC Ltd., Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi - 110001
Shri Mangu Singh Director (Works)DMRC Ltd., Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi - 110001
Shri Kumar Keshav Director (Project)DMRC Ltd., Metro Bhawan, Fire Brigade Lane,Barakhamba Road, New Delhi - 110001
5
Dear Shareholders,
I welcome you all to the 16th Annual General Meeting of the Corporation. The Directors’ Report and the Audited Annual accounts for the Financial Year 2010-2011, the Statutory Auditors’ Report along with the comments of the Comptroller and Auditor General of India thereon, have already been circulated to all of you and with your permission, I take them as read.
My association with the company is very recent as I have taken over as the Chairman of the company only a few weeks ago. All my predecessors have contributed their might in bringing your company to this stature in a very short span of time. The achievements of this premier transport corporation and contributions of all my present and past colleagues, cast a special responsibility on my shoulders to carry this legacy forward. I assure you all that, I will try to give my best to keep the momentum going.
The Phase-II project works have finally been completed and the last section from Ashok Park Main to Kirti Nagar has been opened for commercial operations on 27.8.2011.
Recently, Phase-III network has also been approved by the Government. Physical works on few sections have also been commenced. Your company has a history to complete the works well ahead of targets. I am quite confident that Phase-III works will also be taken up in the same spirit and will be completed as per the schedule.
I wish to thank everyone, particularly the Managing Director, the Directors, all DMRC employees and contractors and the Japan International Corporation Agency (JICA) for the role they have played in accomplishing Phase-II of the project in time.
Before I conclude, I would like to place on record our sincere appreciation of various ministries and departments of the Government of India and the Delhi Government for their constant guidance and ready cooperation and look forward to their continued support.
Thank you,
Sd/-(Sudhir Krishna)
Place : New Delhi ChairmanDate : 7th September 2011 Delhi Metro Rail Corporation Ltd.
Chairman's Letter to Shareholders
7
Directors’ Report 2010- 2011
Your Directors have pleasure in presenting the 16th Annual Report together with the audited accounts, Auditors’ Report and comments of Comptroller and Auditor General of India thereon for the year ended March 31, 2011.
During the year under review, the total revenue generated was `1607.94 crore inclusive of income from operations, real estate, consultancy and other incomes. The total expenditure incurred for the same period was ` 840.28 crore giving a profit before depreciation and interest amounting to ` 767.66 crores. After adjustment of interest and depreciation amounting to `180.76 crores and ` 582.43 crores respectively, a marginal loss amounting to `12.70 crores (after adjustment of prior period transactions amounting to ̀ 17.16 crore) was incurred. After providing for deferred tax liability and wealth tax etc. amounting to ̀ 400.91 crores and ̀ 0.25 crores respectively, there is a net loss of ̀ 413.86 crores.
Operation income of ̀ 938.65 crore was earned during the year, against which expenditure incurred, (exclusive of interest and depreciation) was ̀ 488.91 crore yielding an operating profit of ̀ 449.74 crore. As against this budgeted provisions for traffic income and expenditure for the year 2010-11 was `1020.94 crore and ̀ 560.75 crore respectively yielding a surplus of `460.19 crore. The major reasons for the shortfall in operational income are delays in the opening of sections as against the internal targets considered as base for the budgeted figures. However, compared with the previous year, there is an increase in the revenue under this head by an amount of ̀ 411.45 crores i.e. 78.04%. Average ridership increased from 9.19 lakh during the year 2009-10 to 12.59 lakh in 2010-11 i.e. an increase of 36.99%.
In consultancy area, receipt was ` 21.45 crore and expenditure ` 6.88 crore yielding a surplus of `14.57 crore. As against this the budget provision for revenue and expenditure on these accounts were ` 21.34 crore and `.8.95 crore respectively with expected surplus of ̀ 12.39 crore.
In case of External Project Works, the company executed the work of ̀ 384.43 crores as against the cash budget estimates of ̀ 645 crores. The reduction in external project work is mainly due to late picking of Jaipur project during the year.
The value of work done during the year was ` 4,296.50 crore against budget estimates of ` 4,366.07 Crores. With the capitalization of these assets, the total asset base of the company excluding capital works in progress went up to ` 29,201.40 crore.
JICA loan amounting to ` 1832.62 crore at interest rate of 1.20% to 1.40% was received during the year. With this, total amount of JICA loan as on 31st March 2011 stood at `14749.43 crore, which has been utilised for Phase-I and Phase-II. Three installments of JICA loan amounting to ̀ 33.72 crore and interest amounting to ̀ 225.02 crore had been paid to GOI during the year under review. Total repayment obligations of JICA loan upto the close of FY 2010-11, aggregating to ̀ 826.50 crore including interest payment of ̀ 696.95 crore have been duly met by the company.
During the year, an amount of ` 2132.30 crores were received from the Government of India and GNCTD towards equity. With this, total contribution of equity capital amounting to ̀ 10305.71 crores has been allotted to both the Governments. An additional amount of ` 236.42 Crore & `306.92 Crore received from GNCTD & GOI respectively are available as Share Application Money pending allotment as on 31st March 2011. In addition to equity, Subordinate Debts of `0.30 crores from HUDA towards Central Sales Tax was received during the year. With this, total contribution against Subordinate Debts as on 31st March 2011 stood at ̀ 1652.30 crores.
In addition to above, during the year the company received grants from HUDA ` 5.55 Crore for extension of Metro to Gurgaon, from GOI `1.39 Crore for extension of Metro to Gurgaon, from Delhi International Airport Ltd. (DIAL) ` 7.22 Crores for Airport Express Line and from CISF ` 2.85 Crores for construction of additional floor at CISF barracks at Shastri Park.
During the year under review your company achieved cumulative progress of 99.78% by opening of following lines for commercial operations: -
— Inderlok – Mundka Section w.e.f. 3rd April 2010;
— Qutab Minar – Huda City Centre Section w.e.f. 21st June 2010;
— Chattarpur Station w.e.f. 26th August 2010;
Financial Highlights
Status of the Delhi MRTS Project – Phase - II
Operating Profit (O&M)
2009-10 2010-11
238.21
449.74
8
— Central Sectt - Qutab Minar Section w.e.f. 3rd September 2010;
— Central Sectt – Sarita Vihar Section w.e.f. 3rd October 2010;
— Dwarka Sector 9 to 21 Section w.e.f. 30th October 2010;
— Sarita Vihar – Badarpur Section w.e.f. 14th January 2011;
— Airport Express Line w.e.f. 23rd February 2011.
Out of the remaining two sections, one section from Anand Vihar to Vaishali (2.57 kms) has been opened on 14.7.2011. The last section from Ashok Park Main to Kirti Nagar (3.31 kms) was opened on 27th August, 2011. The total route length of metro network as shown above is exclusive of 22.70 KMs of Airport Express Line.
The Group of Ministers has approved Phase-III of Delhi MRTS project on 09.08.2011. The approved Phase-III network has 4 corridors covering a route length of 103.050 KMs and 67 stations. The approved cost of the project is ` 35242 crore. In addition to the above, GOM has also approved the extension of Delhi Metro to Faridabad covering a route length of 13.875 KMs with 9 stations to be funded by Government of Haryana and GOI.
While planning for Phase-III network, the main motive behind the recommended corridors has been to give metro network smooth connectivity by providing more interchange stations for switching from one corridor to another. This will reduce the travel time for metro commuters, as they will be able to interchange at more locations, instead of travelling for long route and then changing at terminals.
Physical works on Phase-III has been commenced and entire Phase-III project is planned to be completed by 2016. After Phase-III, citizens of Delhi will get a proper local transportation system, where a commuter can get metro services within a maximum distance of approx 1-2 km from major residential and commercial locations, with greater connectivity to all major NCR sub-urban areas.
Yours Director’s are pleased to inform you that Delhi Metro had completed 100 months of Metro Operations. The journey which began on 24th December, 2002 with only 8.5 kilometers and six Metro Stations for the public of Delhi today crosses the boundaries of the national capital to reach NOIDA and Gurgaon with 167.33 kilometers of network excluding 22.70 KMs of Airport Express Line.
Metro train operations also saw a considerable rise in the average ridership figures from 82,179 in December 2002 to almost 14.15 lakhs passengers presently in March 2011. The maximum ridership in a day was 20.83 lakhs on 12.08.2011. The rise in ridership is mainly attributed to a number of openings/inaugurations on different corridors during the last nine years of its existence since 2002.
Your company has targeted to achieve average ridership of 2 Million passengers per day by the end of current year i.e. by 31.12.2011.
To meet the expectations of increasing commuters, number of steps such as, augmentation of more train sets in the system, increasing the number of coaches in the existing trains and increasing passenger facilities at the stations have been taken.
In a recent survey conducted by Japan International
Phase –III
Commercial Operations
31st Mar-2009
31st Mar-2010
31st Mar-2011
29th Aug-2011
74.5595.84
161.45 167.33
Total Route Length of Metro Network (KMs)
Phase-I
65.10
167.33
284.26
Phase-II Phase-III
Phase-wise Cumulative approved route KMs
Ridership (Lakh/Day)
6th
Ju
n-2
00
6
4th
Au
g-2
00
9
27
th S
ep
-20
10
15
th N
ov
-20
10
13
th J
un
-20
11
1s
t A
ug
-20
11
12
th A
ug
-20
11
5.02
10.09
15.43 16.25 16.93 18.2920.83
Directors’ Report 2010- 2011
9
Cooperation Agency (JICA), almost 90 percent of the commuters have expressed their satisfaction about the quality of the services, punctuality of the trains, cleanliness at the stations, comfort levels in the trains, ticketing facilities at the stations and train announcements.
Your company has clearly emerged has a preferred mode of public transport among Delhities.
When the first section of Phase-II was opened, DMRC had a total of 280 coaches. For catering to the increased ridership after the completion of Phase-II, 678 new coaches have been added to passenger service of which 190 are standard gauge and the rest broad gauge. The Delhi Metro currently has 966 coaches.
A l l M e t r o t r a i n s h a v e b e e n d e s i g n e d f o r f a s t acceleration/deceleration and maximized energy efficiency and incorporate advanced features like Automatic Train Protection, Train Integrated Management System (TIMS) for continuous monitoring of critical sub-systems, secondary air suspension and microprocessor controlled regenerative braking that feeds electricity into the system during braking.
The state-of-the-art lightweight, stainless steel, fully vestibule air-conditioned coaches are equipped with electronic passenger information displays, passenger alarms, communication systems, audio announcement facility for pre-informing passengers about the arrival of platforms and the most modern sensor-based automatic electric door opening and closing operation.
The six coach trains have been introduced from December, 2010 onwards to cater to more passengers. There are plans to steadily convert more four coach trains into six coach ones.
Various news measures have been taken to upgrade the metro train features for the comfort and safety of the commuters. Few of them are listed below: -
— Closed Circuit Television Cameras (CCTVs) have been fitted inside the coaches apart from cameras outside the coaches so that the driver can see the entry and exit of passengers from the train.
— Power supply connections are available inside the coaches so that the passengers can use their laptops and charge their mobiles while they are travelling in the Metro.
— The coaches have reduced noise levels inside the trains because of the use of special sound absorbing cushions in the walls of the coaches and more buffing on the Metro doors.
— Special humidity censors activate the heating system of the air-conditioners inside the Metro coaches to eliminate humidity for better comfort.
— As the trains now run on longer routes after the completion of Phase-II and more trains are terminating at intermediate stations, there are new destination sign boards in LED on windows of the side walls of the coaches
adjacent to the platform for passenger convenience.
— The micro processor based controlled wheel mounted disc brakes in the trains procured for Phase-II are better thanthe existing braking system.
All the above changes will bring better safety and comfort features for the travelling public.
DMRC is striving for continual improvement in its Health & Safety policies, processes and procedures, CCTVs, detectors, scanners and metal detectors are installed to guard Metro stations. All measures are
Rolling Stock
Special Features on New Metro Trains
World Class Safety Standards
31st Mar-2009
31st Mar-2010
31st Mar-2011
29th Aug-2011
280400
844966
No of Coaches
Directors’ Report 2010- 2011
10
taken to comply with the highest safety norms and underground Metro stations conform to guidelines of the National Fire Prevention Association, USA. All structures of Delhi Metro are earthquake resistant and have been designed to take care of seismic forces.
The world’s most sophisticated and advanced safety measures have been implemented in all Metro Stations and trains. The hi-tech Operation Control Centres (OCC) ensures that if a train breaks down on track, other scheduled trains will automatically stop at a safe distance away to avert collision.
Delhi Metro has been awarded OHSAS 18001 (Occupational Health and Safety Assessment Sequence 18001) by Registro Italiano Navale (RINA), Geneva. DMRC may be the only operational Metro to receive this certificate in such a short span of time. DMRC had earlier received ISO 14001 for environmental protection.
Clean Development Mechanism (CDM) is a market driven mechanism and offers an opportunity to contribute towards environmental sustainability through business operations while at the same time helps to generate revenue by selling carbon credits. DMRC’s first CDM project is on regenerative braking, making it the world’s first railway and metro project to be registered under the CDM. DMRC’s second CDM project has been developed, based on the shift of public travel in cars/buses and other means of road transport to the metro trains. This CDM project is currently under process.
DMRC’s corporate culture specified that the Metro should not lead to ecological or environmental degradation. For every tree cut during construction, 11 trees are being planted as compensatory afforestation, including a tree close to the original location from where it was cut. Many eco-friendly varieties of trees have been transplanted.
DMRC has always ensured the safety of historic monuments such as Jantar Mantar and Kashmere Gate. Even roads that were dug-up were restored in a better condition after construction leaving people craving for more, as the transition was almost seamless. Better quality and wider roads have been built by DMRC near all its construction sites.
The DMRC includes Rain Water Harvesting as part of its station construction contracts. This initiative of the Delhi Metro Rail Corporation Ltd. is helping in recharging the ground water in Delhi.
The Delhi Metro conducts awareness programme to create knowledge about HIV/AIDS/STI among migrant workers engaged in construction of the Delhi Mass Rapid Transit System. The mediums used to spread awareness include banners, posters, street plays, songs, group discussions, counseling and magic shows. DMRC is also providing medical facilities and educational services to its labourers and their children.
The Delhi Metro consults local residents, Resident Welfare Associations (RWA), Project Affected Persons (PAP) and other through regular Community Interaction Programmes. These meetings are held near construction sites to address local issues and problems arising out of Metro construction activities.
The DMRC has constructed a fully furnished children’s home at Tis Hazari. The home has five dormitories, two class-rooms and a playground. It has also been provided with some other basic requirements like a library, a mess etc. About 100 to 125 children can be accommodated in this home. An organization known as the ‘Salaam Balak Trust’ manages this children’s home.
Your company intends to take up similar projects in the future as well.
Delhi Metro is amongst a few Metro systems in the world which do not need any subsidy from the Government and derives financial support from its Property Development activities. Phase-I of Delhi Metro Project had provided 7% of the project cost upfront, and a recurring income of 20% of the fare box revenue. These developments also provide social benefits to commuters, as well as the city in general.
In order to build a dedicated cadre of engineers specially trained in Metro technology, DMRC and the Indian Institute of
Carbon Credit
Social Responsibility
Social Projects
Property Development
A Special Course in Metro Technology
Directors’ Report 2010- 2011
11
Technology (IIT), Delhi, have started a one year course which produces 25 executives each year to cater to the growing need of Metros around the country.
The Post Graduate Diploma in Metro Technology is the first course of its kind in the country and the course content, jointly developed by DMRC and IIT Delhi, aims to develop a common vision about Metros among participants coming from diverse specialized fields. The faculties for the programs are professors of IIT, Delhi and DMRC officials.
The DMRC follows “people first policy”. It believes that human resources is its most important resource and continue to work for its development and realization of its full potentials. With a view to bring greater job satisfaction and enhance the capabilities of our Human Resources further, a number of new HR initiatives have been taken. For opening of the various new lines of Phase-II project, the recruitment and training of staff was an important assignment. The total staff strength as on 31.3.2011 was 6775 including project and operation.
Several initiatives were undertaken by the company for the benefit and welfare of its employees at all levels, which includes monthly knowledge sessions, summer camps, on-line grievance redressal system, etc.
During the period under review Special Trainings have been organized for the executives.
The Employer-Employee relationship continues to be cordial throughout the year and DMRC could meet the targets well in time.
The Hindi Fortnight was celebrated from 14-28th September 2010 in the company. Various competitions were organised to encourage the progressive use of Hindi and 44 employees were awarded with prizes.
In order to promote transparency and accountability, an appropriate mechanism has been set up in the company in line with the Right to Information Act, 2005. Your company has nominated APIOs, PIOs, AAs to provide information to citizens under the provisions of RTI Act.
Safety Awareness campaigns are regular feature throughout the year. At project sites, safety tool box talks are held at the beginning of working shift. Safety Training Programmes are being organised by contractors wherein DMRC safety team and Experts from General Consultants also contributes through delivery of lectures. During the FY 2010-11, Safety Awareness week was organised from 4-9th March wherein all DMRC employees participated in events like safety seminars, quiz competition and other safety promotional activities.
Your company is an IT savvy organisation and is continuously adopting the latest and state-of-the-art IT solutions, keeping pace with the fast changing industry. The process of up-gradation of the existing SAP ERP hardware and technical upgrade of SAP R/3 to the latest SAP ECC6 software has been successfully completed. This has added several new features to the existing ERP setup. This helps in continuous improvement in efficiency and productivity of employees and also enables ‘right information to right person’ by use of latest IT security solutions.
The Company has not invited deposits from Public under section 58 A of the Companies Act, 1956.
Information with respect to employees in the employment of the Company who were drawing salary of more than Rs.2,00,000/- per month, if employed for the part of the year and Rs.24,00,000/- per annum, if employed, for the full year, in whose respect information in accordance with the provisions of Section 217(2) A of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended, is given as Annexure to this Report.
Information in accordance with the provisions of Section 217(1)(e) of the
Human Resource Management
Official Language
Right to Information
Safety Programme
IT Initiatives
Fixed Deposit
Particulars of Employees
Energy, Technology, Foreign Exchange
Directors’ Report 2010- 2011
12
Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is given below:
Your company’s operations are energy intensive since all aspects of operation of running of trains, air conditioning of underground stations, lighting of stations, lifts, escalators etc. involve electric energy utilization. In addition to the various measures already taken for conservation of energy and optimum use of energy steps have been taken for further improvement to optimize energy consumption.
a. Primary & secondary pumps with variable frequency drive have been used for chiller pumps which helps in reducing the rating of the pump for the said output.
b. Air cooled chillers with FCUs which are more energy efficient have been used for in place of split AC, in Phase-II.
c. UVC tubes have been used in AHUs for making ECS system more efficient.
d. Instead of uniform running time for chiller & track way exhaust fans for all the stations is now based upon the footfall at the station.
Adoption of above energy conservation measures right from the design stage by judicious evaluation onselection of system and technology has enabled us to ensure optimal use of energy.
The Fire Retardant Low Smoke Zero Halogen (FRLSZH), low voltage cables and fire pumps to NFPA, a large number of items of 25 kV Rigid OHE system and other items which were imported in Phase-I, have since been developed by Indian industries and supplied in Phase-II.
(i) Conservation of Energy
(ii) Technology Absorption
(iii) Foreign Exchange earnings and outgo:
Directors’ Report 2010- 2011
Auditors’ Report
Directors
The Statutory Auditors' Report on the Accounts of the Company for the financial year ended 31st March 2011 is enclosed. The ‘nil’ comment on annual accounts and auditors’ report for the year ended 31st March 2011 by the Comptroller & Auditor General of India under Section 619 (4) of the Companies Act, 1956 does not call for any reply from the management and is enclosed herewith.
During the Financial Year 2010-2011, the Board of Directors had four Board Meetings on 21st June 2010, 12th August 2010, 6th December 2010 and 8th March 2011.
The following changes among the Directors also took place during the year:
Particulars 2010-11 2009-10
Value of imports calculated on CIF basisExpenditure in Foreign currency on 3,221.98 *7,242.95
(I) Professional and consultancy fee 1,036.17 1,873.38(ii) Tours and Travels 28.15 68.26(iii) Contracts 1,05,212.75 *1,29,705.78(iv) Others 153.10 282.15Earnings in Foreign Exchange(I) Consultancy NIL NIL(ii) Interest NIL NIL(iii) Others 357.96 0.38Value of Components, spare parts and store consumer;(I) Imported 271.71 701.93(ii) Indigenous 1,442.65 1202.59
(` in Lakhs)
* The values are calculated based on composite milestone payments (net cash payments), which includes expenditureon Design, Erection, Testing, Commissioning etc.
13
Shri Navin Kumar, Chairman (DMRC) and Secretary (UD) MOUD, joined the Board on 12th August, 2010 vice Shri M. Ramachandran, former Chairman (DMRC) and Secretary (UD) MOUD.
Shri A. P. Mishra, Member (Engineering) Railway Board, joined the Board on 6th December 2010 vice Shri Rakesh Chopra, former Member (Engineering) Railway Board.
Shri G. S. Patnaik, Vice Chairman (DDA) GOI, joined the Board on 8th March 2011 vice Shri A. K. Nigam, former Vice Chairman (DDA) GOI.
Shri P. K. Tripathi, Principal Secretary (Finance), GNCTD joined the Board on 8th March 2011 vice Shri J. P. Singh, former Principal Secretary (Finance), GNCTD.
Your Board of Directors places on record its deep sense of appreciation for the valuable contributions made by all outgoing Directors.
The Audit Committee constituted by the Board in accordance with the provisions of the section 292 (A) of the Companies Act, 1956, consists of three members. The terms of reference of the Audit Committee as approved by the Board are as under:
i. To review half-yearly and annual financial statements before submission to the Board.
ii. To ensure compliance of Internal Control Systems.
iii. To have periodical discussions with auditors about internal control systems, the scope of audit including theobservations of the auditors.
iv. To investigate into any matter suo moto or as referred to it by the Board.
During the financial year 2010-2011, the Audit Committee met three times on 21st June 2010, 12th August 2010 and 13th January 2011 to review various Audit Reports, Half-yearly Accounts and Annual Financial Statements.
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors confirm the following in respect of the audited annual accounts for the year ended 31st March, 2011.
i. That in preparation of the annual accounts, the applicable accounting standards have beenfollowed along with proper explanation relating to material departures.
ii. That the Directors have selected such accounting policies and applied them consistently and made judgment 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 the profit or loss of the Company for that period.
iii. That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities.
iv. That your Directors have prepared the annual accounts on a going concern basis.
The Board of Directors conveys its heart full thanks for the support and cooperation received from the various Ministries, Departments and agencies of Govt. of India and Govt. of National Capital Territory of Delhi.
The Board express its gratitude to Japan International Co-operation Agency and Japan Government for providing financial assistance in the form of soft loan to this project.
The Board also express its sincere thanks for the co-operation and assistance received from various national and international contractors, consultants, technical experts and suppliers.
The Board wishes to place on record its appreciation for the hard work, dedication and commitment put in by your company’s employees at all levels by which your company could achieve very stiff project targets in time.
For and on behalf of the Board of Directors of Delhi Metro Rail Corporation Ltd
Sd/- (Sudhir Krishna)
ChairmanPlace: New DelhiDated: 7.9.2011
Audit Committee
Directors’ Responsibility Statement
Acknowledgments
Directors’ Report 2010- 2011
14
Corporate Governance Report 2010-2011
Though Delhi Metro Rail Corporation Ltd. is not a listed company, but keeping the underlying principles of Corporate Governance i.e. value, ethics and commitment to follow best business practices in view, your Directors places the following Corporate Governance Report to the members of the company:
In terms of the Articles of Association of the Company, strength of the Board shall not be less than three Directors not more than 12 Directors excluding nominee Directors. These Directors may be either whole – time functional Directors or part-time Directors.
DMRC is a Government Company within the meaning of section 617 of the Companies Act, 1956. Presently, 100% of the total paid-up share capital is held by Govt. of India and GNCTD in 50:50 ratio. Both the Governments have right to appoint equal number of nominee Directors on the Board of Directors.
As on 31st March 2011 the Board comprised 16 directors of which 6 are functional directors, 5 directors each are nominated by the Government of India and GNCTD. As per the provisions of Article 144 of the Articles of the Company, if Government of NCT of Delhi holds more than 25% of the total paid-up share capital of the company, it shall have the right to designate in consultation with Central Government one of its nominee Director as the Managing Director of the company. Similarly, as per the provisions of Article 153 Central Government has the right to nominate one of its nominee Director as the Chairman of the company, if it holds more than 25% of the paid up share capital. Pursuant to the provisions of above Articles, Managing Director and Chairman are the nominees of Government of NCT of Delhi and Central Government, respectively. The other nominee Directors and whole time functional Directors are senior officers, who have wide range of experience in the functioning of Government Sector, and possess top order administrative skills, financial and technical expertise.
The primary role of the Board is that of guiding force to see that the mandate assigned to the Company by the Government is fully met and at the same time the shareholders’ value is protected and enhanced. The Board ensures that the Company has clear goals and policies for achieving these goals. The Board oversees the Company’s strategic direction, reviews corporate performance, authorizes and monitors strategic decision, ensures regulatory compliance and safeguards interests of shareholders. The Board ensures that the Company is managed in a manner that fulfills stakeholder’s aspirations and societal expectations.
Board Members also ensure that their other responsibilities do not impinge on the responsibilities as a Director of the Company.
a) Institutionalized decision making process:
With a view to institutionalize all corporate affairs and setting up systems and procedures for advance planning for matters requiring discussion, decision by the Board, the company has well defined procedure for meetings of the Board of Directors and Committees there of in an informed and efficient manner.
b) Scheduling and selection of Agenda items for Board/Committee Meetings:
(i) The meetings are convened by giving appropriate notice after obtaining approval of the Chairman of the Board/Committee. Detailed agenda, management reports and other explanatory statements are circulated in advance amongst the members for facilitating meaningful, informed and focused decisions at the meetings. To address specific urgent need, meetings are at times also being called at shorter notice. The Board also passes Resolution by Circulation but only for such matters, which are of utmost urgency.
(ii) The agenda papers are prepared by the concerned Head of Departments and submitted to concerned functional Directors for obtaining their approval before being submitted to ManagingDirector. Duly approved agenda papers are circulated amongst the Board Members by the Company Secretary.
(iii) Where it is not desirable to attach any document or if the agenda is of sensitive nature, the same is
1. BOARD OF DIRECTORS
2.1 Constitution of the Board
2.2 Composition of the Board
2.3 Responsibilities
2.4 Board/Committee Meetings and procedure
15
placed on the table at the meeting with the approval of the Managing Director. In special and exceptional circumstances, additional or supplemental items(s) on the agenda are taken up for discussion with the permission of the Chair of the Board
(iv) The meetings are usually held at the Company’s Registered Office at New Delhi.
(v) The members of the Board have complete access to all information of the Company.
c) Briefing by the Chairman & Managing Director
At the beginning of each Meeting of the Board, the Managing Director briefs the Board Members about the key developments including status of the Project, highlights of Operations and Maintenance of MRTS system and other important achievements/developments relating to the Company in various areas.
d) Recording minutes of proceedings at the Board Meeting
Minutes of the proceedings of each Board Meeting are recorded. The minutes of the proceedings are entered in the Minutes Book. The minutes of each Board Meeting are submitted for confirmation at its next meeting after these are signed by the Chairman. The minutes of committee of the board are also placed to the Board for its information.
e) Compliance
Every Head of Department and functional Director while preparing agenda notes ensuresadherence to all the applicable provisions of law, rules, guidelines etc. The Company Secretary ensures compliance of all applicable provisions of the Companies Act, 1956, and other statutory requirements.
During the financial year 2010-11, four Board Meetings were held on, 21st June 2010, 12th August 2010, 6th December 2010 and 8th March 2011.
Details of designation, category of directors, number of Board meetings attended, attendance at last AGM, number of other directorship/committee membership (viz., Audit Committee and Investment Committee held by them during the year 2010-11 are tabulated below:
Corporate Governance Report 2010-2011
S. No. Directors Meetings heldduring respective meetings Attended the last AGM
tenures of Directors No. of Board (Held on 12.8.2010)
1. Shri M. Ramachandran 1 1 YesChairman, DMRC (Till 21.6.2010)
2. Shri Navin Kumar 3 3 NoChairman, DMRC (From12.8.2010)
3. Shri E. Sreedharan 4 4 YesManaging Director, DMRC
4. Shri Rakesh Mehta 4 2 YesChief Secretary, GNCTD
5. Shri Rakesh Chopra 2 0 NoMember (Engineer)Railway Board (Till 12.8.2010)
6. Shri A. P. Mishra 2 0 NoMember (Enginering)Railway Board (From 6.12.2010)
7. Shri A. K. Nigam 3 1 YesVice Chairman, DDA (Till 6.12.2010)
8. Shri G. S. Patnaik 1 1 N.A.Vice Chairman, DDA (From 8.3.2011)
9. Shri R. C. Mishra 4 3 YesAdditional Secretary (UD)
10. Smt. Vilasini Ramachandran 4 2 NoSpecial Secretary (Exp.) GOI
No. of Board Attendance at
16
11. Shri J. P. SinghPrincipal Secretary (Finance)GNCTD (Till 6.12.2010)
12. Shri P. K. Tripathi 1 1 N.A.Principal Secretary (Finance)GNCTD (From 8.3.2011)
13. Shri R. K. Verma 4 0 NoSecretary (Transport), GNCTD
14. Shri Ramesh Chandra 4 4 YesDirector, DMRC
15. Shri Satish Kumar 4 4 YesDirector (Electrical), DMRC
16. Shri R. N. Joshi 4 4 YesDirector (Finance), DMRC
17. Shri Raj Kumar 4 4 YesDirector (Operation), DMRC
18. Shri H. S. Anand 4 4 YesDirector (Rolling Stock), DMRC
19. Shri Mangu Singh 4 4 YesDirector (Works), DMRC
20. Shri Kumar Keshav 4 4 YesDirector (Project), DMRC
3 2 Yes
2.5 Information placed before the Board of Directors, inter alia, includes:
3. Committees of the Board of Directors
3.1 Audit Committee
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Annual budgets and cash flow statements.
Annual Accounts, Directors’ Report etc.
Minutes of meetings of Audit Committee and other Committees of the Board.
All proposals, which involve change of corridors.
New Proposals, which involve operation of metro beyond NCR.
All Proposals, which involve change in Technology/Technology parameters other than contemplated in DPR.
Operational highlights
Realization from Property Developments.
Award of large contracts.
Any significant development in Human Resources/Industrial Relations front.
Compliance Certificate of statutory provisions.
Short-term investment of surplus funds.
Information relating to major legal disputes.
Other materially important information.
The Board has established the following Committees: -
I) Audit Committee
ii) Investment Committee
The constitution, quorum, scope etc. of the Audit Committee is in line with the provisions of Companies Act, 1956. All the members of Audit Committee are qualified and having insight to interpret and understood financial statements.
Corporate Governance Report 2010-2011
17
Constitution
The Audit Committee has been constituted with the membership of:
(i) Special Secretary (Expenditure), Ministry of Finance, Government of India.
(ii) Principal Secretary (Finance), Department of Finance, Government of NCT of Delhi.
(iii) Director (Electrical)/DMRC Ltd.
Composition
As on date of AGM, the Audit Committee comprised the following members:-
(i) Smt. Vilasini Ramachandran, Special Secretary (Expenditure), Govt. of India nominee.
(ii) Shri D. M. Spolia, Principal Secretary (Finance), Govt. of NCT of Delhi nominee.
(iii) Shri Satish Kumar, Director (Electrical), DMRC Ltd.
Director (Finance), GM (Finance-I), GM (Finance-II), Internal Auditors and the Statutory Auditors are also invited in the Audit Committee Meeting but they have no right to vote.
Quorum for the Audit Committee is any two Members out of three.
The Company Secretary is the Secretary to the Audit Committee.
Scope of Audit Committee of Directors Meeting
1. Discussion with Auditors periodically about internal control systems and the scope of audit including observations of the auditors.
2. Review of the half-yearly and annual financial statements before submission to the Board.
3. Review of Internal Audit observations and compliance of suggestive measures by Internal Auditors.
4. Ensure Compliance of Internal Control System.
5. Overseeing of the company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.
6. Reviewing with management the annual financial statements before submission to the Board, focusing primarily on,
(i) Any changes in accounting policies and practices.
(ii) Major accounting entries based on exercise of judgment by management.
(iii) Significant adjustment entries based on exercise of judgment by management.
(iv) Significant adjustments arising out of audit.
(v) The going concern assumption.
(vi) Compliance with accounting standards.
(vii) Any related party transactions i.e. transaction of the company of material nature, with promoters or the management, their subsidiaries or relatives etc. that may have potential conflict with interest of company at large.
7. Reviewing with the management, external and internal auditors, the adequacy of internal control systems.
8. Reviewing with the adequacy of internal audit function, including the structure of the finance department, reporting structure coverage and frequency of internal audit.
9. Discussion with internal auditors any significant findings and follow up there on.
10. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud of irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
11. Discussion with external auditors regarding scope of audit as well as have post-audit discussion to ascertain any area of concern.
12. Reviewing the company’s financial and risk management policies.
13. Investigation into any matter in relation to the items specified above or referred to it by the Board.
Corporate Governance Report 2010-2011
18
Date & Time 23rd September 2008 16th September, 2009 at 12th August, 2010 at
12.30 P.M.
Venue Board Room, DMRC Ltd.,
3rd Floor, NBCC Place,
Pragati Vihar, Bhishma
Pitamah Marg,
New Delhi-110003.
Special
Resolution(s)
passed
crores only) divided into
10,00,00,000 (Ten crores)
equity shares of 1,000 o
(One thousand) each".
at 5.15 P.M. at 5.15 P.M.
Board Room, Metro Bhawan, Board Room, Metro Bhawan,
8th Floor, Fire Brigade Lane, 8th Floor, Fire Brigade Lane,
Barakhamba Road, Barakhamba Road,
New Delhi-110001 New Delhi-110001
"V. The Authorised Share NIL “V. The Authorised Share
Capital of the Company is Capital of the Company is
100,00,00,00,000 200,00,00,00,000 (Rupees
(Rupees Ten Thousand Twenty Thousand crores only)
divided into 20,00,00,000
(Twenty crores) equity shares
f 1,000 (One thousand)
each”.
` `
` `
Members of Audit Committee Meetings held during Meeting attended
3 1
Special Secretary Expend.),
3 2
Principal Secretary (Finance),
3 3
Director (Electrical),
his/her tenure
GOI
GNCTD
DMRC
Smt. Vilasini Ramachandran
Shri J. P. Singh
Shri Satish Kumar
Name of part-time Sitting Fee Total
Shri Ramesh Chandra Board Meeting Committee Meeting
30,000 NIL 30,000
non-official Director
` `
Corporate Governance Report 2010-2011
Meeting and attendance
Three meetings of the Audit Committee were held during the financial Year 2010-11, 21st June 2010, 12th August 2010
and 13th January 2011.The details of the meeting of Audit Committee attended by the members are as under: -
Director (Finance), GM (Finance-I), GM (Finance-II), Internal Auditors were present in all Audit Committee held during the
year under review as invitees.
3.2 Details of payments towards sitting fee to Non-official Director during the year 2010-11 are given below: -
4. General Body Meetings
Annual General Meeting
Date, time and location where the last three Annual General Meetings were held are as under:
5. Company’sWebsite
The Company’s Website is www.delhimetrorail.com. All major information pertaining to company, including project,
contracts, job, recruitment process and results etc. are given on the website.
Delhi Metro Rail Corporation Ltd.
Address for correspondence:
Registered Office: Company Secretary
Mr. A. K. Garg
Metro BhawanFire Brigade Lane, Delhi Metro Rail Corporation Ltd.,
Barakhamba Road Metro Bhawan
New Delhi-110001, India. Fire Brigade Lane, Barakhamba Road
Board No.- 23417910/12; Fax No.- 23417921 New Delhi-110001, India.
Website: www.delhimetrorail.com Ph: 23418308 ; Fax:23417921
E-mail : [email protected]
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 103,057,104,000 81,734,104,000
Share Application Money 5,433,400,000 973,000,000
Deferred Grants 2 27,902,250,825 28,266,293,115
Loan Funds
Unsecured Loans 3 163,266,966,807 145,506,402,060
Net Deferred Tax Liability 7,531,135,480 3,522,066,010
TOTAL 307,190,857,112 260,001,865,185
APPLICATION OF FUNDS
Fixed Assets
Gross Block 4 292,014,010,779 149,662,311,169
Less: Depreciation 20,301,417,404 14,366,778,607
Net Block 271,712,593,375 135,295,532,562
Capital Work- in- Progress 5 8,997,057,898 106,695,682,265
Construction Stores & Advances 6 3,597,927,706 284,307,578,979 9,910,706,931 251,901,921,758
Current Assets, Loans and Advances 7
Inventories 463,930,997 361,297,404
Sundry Debtors 2,285,894,190 2,197,020,884
Cash & Bank Balances 29,195,709,679 15,585,979,213
Other Current Assets 305,596,196 129,717,292
Loans and Advances 7,932,246,931 6,322,066,226
40,183,377,993 24,596,081,019
Less: Current Liabilities and Provisions 8
Current Liabilities 24,509,792,371 19,730,621,334
Provisions 733,577,554 570,233,238
25,243,369,925 20,300,854,572
Net Current Assets 14,940,008,068 4,295,226,447
Profit & Loss Account 7,943,270,065 3,804,716,980
TOTAL 307,190,857,112 260,001,865,185
Significant Accounting Policies 14
Notes on Accounts 15
Schedules 1 to 15 attached form integral part of accounts
As per our seperate report of even date annexed
For S N Nanda & CoChartered Accountants
S. N. Nanda P. K. GUPTA R. N. JOSHI E. SREEDHARANPartner Company Secretary Director (Finance) Managing Director
Membership No:- 5909
Date: 01.07.2011Place: New Delhi
Particulars Schedule No
As at31.3.2011
As at31.3.2010
BALANCE SHEET AS AT 31ST MARCH, 2011
Delhi Metro Rail Corporation Limited
Amount (`)
19
Delhi Metro Rail Corporation Limited
INCOME
Traffic Operations 9 9,386,522,706 5,272,011,880
Consultancy 214,536,661 321,915,668
Real Estate 9 983,751,590 292,749,297
External Project works 3,844,301,001 835,879,636
Others 10 1,650,311,150 656,057,336
TOTAL 16,079,423,108 7,378,613,817
EXPENDITURE
Traffic Operations 11 4,889,062,997 2,889,863,785
Consultancy 11 68,820,894 70,149,073
Real Estate 11 116,674,386 48,648,376
External Project works 11 3,328,289,601 803,456,421
Miscellaneous Expenses Written Off - 560,072
TOTAL 8,402,847,878 3,812,677,727
PROFIT BEFORE DEPRECIATION & INTEREST 7,676,575,230 3,565,936,090
Depreciation 5,840,164,798 3,341,615,029
Less:- transferred to CWIP 15,826,389 5,824,338,409 45,240,683 3,296,374,346
Interest & Finance Charges 12 2,202,458,695 1,633,844,939
Less:- transferred to CWIP 394,811,043 1,807,647,652 469,338,212 1,164,506,727
PROFIT/(LOSS) BEFORE TAX AND PRIOR 44,589,169 (894,944,983)PERIOD ADJUSTMENTS
PRIOR PERIOD ADJUSTMENTS (NET) 13 (171,616,694) (6,903,914)
PROFIT/(LOSS) BEFORE TAX (127,027,525) (901,848,897)
PROVISION FOR TAXATION
Net Deferred Tax Liability 4,009,069,470 1,147,959,133
Wealth Tax 2,456,090 4,011,525,560 2,477,590 1,150,436,723
PROFIT/(LOSS) AFTER TAX (4,138,553,085) (2,052,285,620)
BROUGHT FORWARD FROM LAST YEAR (3,804,716,980) (1,752,431,360)
CARRIED FORWARD TO BALANCE SHEET (7,943,270,065) (3,804,716,980)
EARNING PER SHARE (FACE VALUE (45.20) (29.13)OF ` 1000 EACH)- BASIC
EARNING PER SHARE (FACE VALUE (45.20) (29.13)OF ` 1000 EACH)- DILUTED
Significant Accounting Policies 14
Notes on Accounts 15
Schedules 1 to 15 attached formintegral part of accounts
As per our seperate report of even date annexed
For S N Nanda & CoChartered Accountants
S. N. Nanda P. K. GUPTA R. N. JOSHI E. SREEDHARANPartner Company Secretary Director (Finance) Managing Director
Membership No:- 5909
Date: 01.07.2011Place: New Delhi
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31st MARCH, 2011
Particulars Schedule No
For the yearended on 31.03.2011
For the yearended on 31.03.2010
Amount (`)
20
21
SHARE CAPITAL SCHEDULE-1Amount (`)
Particulars As at31.3.2011
As at31.3.2010
Authorised 200,000,000 (Previous year 100,000,000 ) Equity Shares of ` 1,000/- each 200,000,000,000 100,000,000,000
Issued, Subscribed & Paid up10,30,57,104 ( Previous Year 8,17,34,104) 103,057,104,000 81,734,104,000 Equity Shares of ` 1,000/- each fully paid-up
TOTAL 103,057,104,000 81,734,104,000
TERM LOANSINTEREST FREE SUBORDINATE LOANS FROM
Government of India (GOI) For Land 5,690,000,000 5,690,000,000 For Central Taxes 2,942,000,000 8,632,000,000 2,942,000,000 8,632,000,000
Government of National Capital Territory of Delhi (GNCTD)For Land 5,690,870,000 5,690,870,000 For Central Taxes 1,950,000,000 7,640,870,000 1,950,000,000 7,640,870,000
Haryana Urban Development Authority (HUDA)For Central Taxes 113,000,000 110,000,000
New Okhla Industrial Development Authority (NOIDA)For Central Taxes 138,000,000 138,000,000
INTEREST BEARING LOANS FROMGovernment of India against Japan International Cooperation Agency (JICA)(Formerly known as Japan Bank for International Cooperation)
2.3% Loan (includes interest accrued & due ` Nil (P.Y. Nil) 4,382,740,059 4,663,012,792 1.8% Loan (includes interest accrued & due ` Nil (P.Y. ` Nil) 27,684,483,547 27,722,539,174 1.3% Loan (includes interest accrued & due ` 11,42,44,856/- (P.Y. ` 24,11,49,640/-) 40,614,892,219 40,371,793,608 1.2% Loan (includes interest accrued & due ` 39,80,08,738/- (P.Y. ` 59,36,18,645/-) 68,695,201,643 56,228,186,486 1.4% Loan (includes interest accrued & due ` 3,23,93,907/- (P.Y. ` Nil) 5,365,779,339 -
163,266,966,807 145,506,402,060Due for repayment within one year 1,221,559,340 1,108,689,539[Loan ` 67,69,11,839/- (P.Y. ` 27,39,21,254/-)][Interest accrued and due ` 54,46,47,501/- (P.Y. ` 83,47,68,285/-)]
`
UNSECURED LOANS SCHEDULE-3Amount (`)
Particulars As at31.3.2011
As at31.3.2010
Grant-in-Aid from
Delhi Development Authority (DDA) for Dwarka Extension upto Sec 9 3,200,000,000 3,200,000,000 Less:- Transfer to Other Income 381,580,839 2,818,419,161 304,345,829 2,895,654,171
Government of National Capital Territory of Delhi (GNCTD) 1,367,606,568 1,367,606,568 Less:- Transfer to Other Income 205,624,228 1,161,982,340 171,176,722 1,196,429,846
New Okhla Industrial Development Authority (NOIDA)-Extn NOIDA 4,888,000,000 4,888,000,000 Government Of India (GOI) - Metro Extension to Noida 1,222,000,000 1,222,000,000 Less:- Transfer to Other Income 176,299,847 5,933,700,153 48,631,890 6,061,368,110
Delhi Development Authority (DDA) for Dwarka Extension Sec 9 to Sec 21 2,750,000,000 2,750,000,000 Less:- Transfer to Other Income 27,107,694 2,722,892,306 - 2,750,000,000
Haryana Urban Development Authority (HUDA) -Extn-Gurgaon 5,725,500,000 5,670,000,000 Government Of India (GOI) - Metro Extension to Gurgaon 1,153,900,000 1,140,000,000 Less:- Transfer to Other Income 172,761,035 6,706,638,965 - 6,810,000,000
Delhi International Airport Limited (DIAL) For Airport Express Link 3,801,000,001 3,728,840,988 Delhi Development Authority (DDA) - Airport Express Link 2,174,000,000 2,174,000,000 Less:- Transfer to Other Income 44,454,461 5,930,545,540 - 5,902,840,988 Ministry of Textiles (MOT) 50,000,000 50,000,000 Less:- Transfer to Other Income 4,997,000 - Less:- Amount refundable to Ministry of Textiles (MOT) 45,003,000 - - 50,000,000 Central Industrial Security Force (CISF) 28,500,000 Less:- Transfer to Other Income 427,640 28,072,360
Ghaziabad Development Authority (GDA) - Metro Extension to Vaishali 2,600,000,000 2,600,000,000
TOTAL 27,902,250,825 28,266,293,115
DEFERRED GRANTS SCHEDULE-2Amount (`)
Particulars As at31.3.2011
As at31.3.2010
Delhi Metro Rail Corporation Limited
22
Delhi Metro Rail Corporation Limited
LEAS
EHOL
D LA
ND8,0
70,69
4,449
411,1
67,20
3 -
8,4
81,86
1,652
-
-
-
-
-
8,481
,861,6
528,0
70,69
4,449
LEAS
EHOL
D RA
ILWAY
LAND
1,19
1,539
,307
-
1,191
,539,3
07 -
-
-
-
-
1,1
91,53
9,307
1,191
,539,3
07
BUILD
ING
(Leas
e Hold
)28
5,415
,416
-
-
285,4
15,41
6 21
,468,4
60
-
-
4,65
2,271
26
,120,7
31
259,2
94,68
526
3,946
,956
BUILD
INGS
(Fre
e Hold
)38
,417,9
73,91
8 32
,678,1
63,33
4 -
71
,096,1
37,25
2 2,
540,2
27,20
5 -
-
89
6,566
,927
3,43
6,794
,132
67,65
9,343
,120
35,87
7,746
,713
STRU
CTUR
ES (V
ia Du
ct, Br
idge &
Tunn
els)
32,54
1,199
,181
51,30
1,554
,197
-
83,84
2,753
,378
2,10
6,923
,353
-
-
886,4
61,19
5 2,
993,3
84,54
8 80
,849,3
68,83
030
,434,2
75,82
8
TEM
PORA
RY ST
RUCT
URES
51,10
3,084
18,29
8,614
-
69,40
1,698
51,10
3,084
-
-
18
,298,6
14
69,40
1,698
-
-
PLAN
T & M
ACHI
NERY
11,77
0,541
,243
10,07
7,264
,918
1,53
5,000
21
,846,2
71,16
1 2,
091,4
07,93
2 58
2,954
3,
395,7
42
840,7
09,49
6 2,
934,9
30,21
6 18
,911,3
40,94
59,6
79,13
3,311
ROLL
ING
STOC
K27
,177,2
89,25
1 31
,137,6
04,19
7 -
58
,314,8
93,44
8 2,
595,7
30,49
3 -
-
1,
384,9
69,55
6 3,
980,7
00,04
9 54
,334,1
93,39
924
,581,5
58,75
8
SIGNA
LING
& TE
LCOM
EQUI
PMEN
TS11
,375,7
33,09
6 4,
633,6
61,78
0 34
2,462
16
,009,0
52,41
4 2,
200,5
48,33
2 34
2,462
-
71
1,835
,754
2,91
2,041
,624
13,09
7,010
,790
9,175
,184,7
64
TRAC
K WOR
K (PE
RMAN
ENT W
AY)
7,323
,599,6
14 4,
980,9
88,83
0 -
12
,304,5
88,44
4 45
5,101
,490
-
-
185,1
04,49
8 64
0,205
,988
11,66
4,382
,456
6,868
,498,1
24
TRAC
TION
EQUI
PMEN
TS5,8
36,03
2,541
3,58
7,762
,345
-
9,423
,794,8
86 1,
182,7
84,07
0 -
3,
534,8
45
391,8
07,49
5 1,
578,1
26,41
0 7,8
45,66
8,476
4,653
,248,4
71
ESCA
LATO
RS &
ELEV
ATOR
S2,1
46,24
3,324
1,52
7,506
,295
-
3,673
,749,6
19 27
8,578
,767
-
-
100,3
68,55
3 37
8,947
,320
3,294
,802,2
991,8
67,66
4,557
AUTO
MATIC
FARE
COLL
ECTIO
N2,2
84,93
5,196
1,46
2,169
,900
29,69
4,424
3,7
17,41
0,672
444,2
75,18
0 29
,690,8
46
119,2
20,70
0 27
2,949
,886
806,7
54,92
0 2,9
10,65
5,752
1,840
,660,0
16
I.T. S
YSTE
M25
6,602
,249
248,2
19,33
3 46
,000
504,7
75,58
2 72
,234,1
81
11,89
0 -
69
,065,9
50
141,2
88,24
1 36
3,487
,341
184,3
68,06
8
OFFIC
E EQU
IPM
ENTS
105,5
12,38
4 68
,547,5
54
1,50
1,081
17
2,558
,857
22,03
6,033
1,
389,4
45
-
9,44
7,841
30
,094,4
29
142,4
64,42
883
,476,3
51
FURN
ITURE
& FI
XTUR
ES28
2,367
,843
95,69
2,125
-
37
8,059
,968
75,41
4,554
-
34
0,309
22
,422,2
62
98,17
7,125
27
9,882
,843
206,9
53,28
9
VEHI
CLES
40,01
6,364
9,04
3,845
-
49
,060,2
09 7,
173,8
61
-
-
5,08
1,905
12
,255,7
66
36,80
4,443
32,84
2,503
SURV
EY EQ
UIPM
ENTS
2,838
,604
-
-
2,838
,604
758,2
26
-
-
202,7
69
960,9
95
1,877
,609
2,080
,378
SAFE
TY EQ
UIPM
ENTS
209,6
20,20
4 14
4,214
,246
-
353,8
34,45
0 10
,685,7
99
-
-
13,81
9,955
24
,505,7
54
329,3
28,69
619
8,934
,405
CAPI
TAL E
XP. O
N AS
SETS
65
,395,9
62 -
-
65
,395,9
62 65
,073,5
36
-
-
322,4
26
65,39
5,962
0
322,4
26NO
T OW
NED
BY CO
MPA
NY
FEED
ER BU
S 99
,992,6
90
-
99,99
2,690
40,41
7,910
-
-
19
,045,1
96
59,46
3,106
40
,529,5
84 59
,574,7
80
INTA
NGIB
LE AS
SETS
127,6
65,24
9 2,
959,8
61
-
130,6
25,11
0 10
4,836
,141
-
-
7,03
2,249
11
1,868
,390
18,75
6,720
22,82
9,108
TOTA
L - CU
RREN
T YEA
R14
9,66
2,31
1,16
914
2,38
4,81
8,57
733
,118
,967
292,
014,
010,
779
14,3
66,7
78,6
0732
,017
,597
126,
491,
596
5,84
0,16
4,79
8 20
,301
,417
,404
271,
712,
593,
375
135,
295,
532,
562
PRE
VIOU
S YEA
R 11
9,16
9,09
3,71
1 30
,495
,462
,583
2,
245,
125
149,
662,
311,
169
11,0
14,3
24,4
41
1,67
2,94
4 12
,512
,081
3,
341,
615,
029
14,3
66,7
78,6
07
135,
295,
532,
562
FIXE
D A
SSET
SSC
HED
ULE
-4A
mou
nt (`
)
GR
OS
S B
LO
CK
DE
PR
EC
IAT
ION
N
ET
BL
OC
K
PART
ICUL
ARS
COST
AS A
T A
DDIT
ION/
D
EDUC
TION
/ CO
ST A
S AT
DEP
RECT
ION
DED
UCTI
ON/
DEP
RECI
ATIO
N D
EPRE
CIAT
ION
DEP
RECI
ATIO
N A
S AT
AS AT
01.0
4.20
10 A
DJUS
TMEN
T A
DJUS
TMEN
T 31
.03.
2011
UPT
O A
DJUS
TMEN
T FO
R TH
E FO
R TH
E U
PTO
31.0
3.20
1131
.03.
2010
DUR
ING
THE
DUR
ING
THE
31.0
3.20
10
DUR
ING
THE
EARL
IER
YEA
R
31.0
3.20
11
YEA
R Y
EAR
YEA
R YE
ARS
23
CAPI
TAL W
ORK-
IN- P
ROGR
ESS
SCH
EDU
LE-5
Am
ount
(`)
Delhi Metro Rail Corporation Limited
Build
ings
50
,321
,586
,030
1
1,99
2,55
3,30
3 6
2,31
4,13
9,33
3 5
8,71
5,68
5,08
5 3
,598
,454
,248
Stru
ctur
es(V
ia. D
uct,
Brid
ges
& T
unne
ls)
33,
669,
330,
100
802
,849
,807
3
4,47
2,17
9,90
7 3
3,04
8,64
4,61
3 1
,423
,535
,294
Rolli
ng S
tock
7,9
86,3
48,8
06
23,
607,
645,
194
31,
593,
994,
000
30,
858,
025,
584
735
,968
,416
Sign
alin
g &
Tele
com
Equ
ipm
ents
3,6
44,6
48,0
15
1,9
59,4
30,6
17
5,6
04,0
78,6
32
4,5
48,7
91,0
17
1,0
55,2
87,6
15
Perm
anen
t Way
2,
379,
827,
864
619
,182
,570
2
,999
,010
,434
2
,615
,177
,859
3
83,8
32,5
75
Trac
tion
Equi
pmen
ts
4,77
3,12
0,92
4 9
46,5
12,6
61
5,7
19,6
33,5
85
4,6
92,3
58,2
40
1,0
27,2
75,3
45
Esca
lato
rs &
Ele
vato
rs 6
89,4
93,0
88
821
,277
,208
1
,510
,770
,296
1
,464
,503
,034
4
6,26
7,26
2
Auto
mat
ic F
are
Colle
ctio
n Eq
uipm
ents
6
56,4
27,2
28
640
,056
,295
1
,296
,483
,523
9
98,4
87,5
61
297
,995
,962
Plan
t & M
achi
nery
1,1
11,6
83,1
24
602
,385
,698
1
,714
,068
,822
1
,440
,205
,050
2
73,8
63,7
72
IT S
yste
m
162,
483,
656
43,
695,
601
206
,179
,257
1
97,5
61,8
59
8,6
17,3
98
Expe
nses
Dur
ing
Cons
truc
tion
(Net
) 1
,300
,733
,430
9
29,3
83,7
72
2,2
30,1
17,2
02
2,1
70,4
70,0
06
59,
647,
196
Sub-
Tota
l (A
) 1
06,6
95,6
82,2
65
42,
964,
972,
726
149
,660
,654
,991
1
40,7
49,9
09,9
08
8,9
10,7
45,0
83
Safe
ty E
quip
men
ts -
6
2,39
1,88
8 6
2,39
1,88
8 -
6
2,39
1,88
8
Plan
t & M
achi
nery
-
15,
724,
493
15,
724,
493
-
15,
724,
493
Tem
pora
ry A
sset
s -
8,1
96,4
34
8,1
96,4
34
-
8,1
96,4
34
Sub-
Tota
l (B)
-
86,
312,
815
86,
312,
815
-
86,
312,
815
TOTA
L - C
URR
ENT
YEA
R 1
06,6
95,6
82,2
65
43,
051,
285,
541
149
,746
,967
,806
1
40,7
49,9
09,9
08
8,9
97,0
57,8
98
- PRE
VIO
US
YEA
R 6
8,03
0,44
8,92
9 6
7,76
8,34
1,18
6 1
35,7
98,7
90,1
15
29,
103,
107,
850
106
,695
,682
,265
Des
crip
tion
as a
t D
urin
gas
at
01.0
4.20
10
dur
ing
the
Year
the
Year
31.0
3.20
11
Bala
nce
A
ddit
ions
/Adj
ustm
ent
TO
TAL
Cap
ital
ised
Ba
lanc
e
24
Delhi Metro Rail Corporation Limited
CONSTRUCTION STORES & ADVANCES SCHEDULE-6Amount (`)
Particulars As at31.3.2011
As at31.3.2010
Construction Stores (At Cost)(As taken, valued & certified by the Management)-Construction Stores* 694,573,759 1,586,735,484 -Construction Stores - In Transit - 694,573,759 329,011,774 1,915,747,258Advances for Capital Expenditure(Unsecured, Considered Good) - Covered by Bank Guarantees/Indentures/ Hypothecation etc. 2,321,024,083 7,029,283,126 - Others 582,329,864 2,903,353,947 965,676,547 7,994,959,673
TOTAL 3,597,927,706 9,910,706,931
* includes ` 64,43,39,222/- (P. Y. 1,25,48,60,087/-) lying with contractor.`
CURRENT ASSETS, LOANS & ADVANCES SCHEDULE-7Amount (`)
Particulars As at31.3.2011
As at31.3.2010
INVENTORIES (Valuation as per Accounting Policy No - 9)
-Stores and spare parts 441,458,518 304,614,766-Loose Tools 495,226 512,311 -Material in Transit 6,390,464 40,583,538 -Land 15,586,789 463,930,997 15,586,789 361,297,404
SUNDRY DEBTORS (Unsecured Considered Good)-Debts outstanding for a period exceeding Six Months 1,769,986,127 1,542,953,999-Other Debts 515,908,063 2,285,894,190 654,066,885 2,197,020,884
CASH AND BANK BALANCES-Cash in Hand 26,640,837 16,166,404-Cheques/Drafts/Postal Orders in hand 75,044 530,783,288
Balances with Scheduled Banks *-Current Accounts 251,396,560 85,667,865-Short Term Deposits 28,917,597,238 29,195,709,679 14,953,361,656 15,585,979,213
[includes STDR under Bank Lein for LC & others ` Nil(P. Y. ` 5,17,83,598/-)]
OTHER CURRENT ASSETSInterest Accrued on: - Short Term Deposits 291,878,526 121,230,095 - Employees 13,717,670 8,200,357 - Advances to Contractors - 305,596,196 286,840 129,717,292
LOANS AND ADVANCES Advances recoverable in cash or in kind or value to be received (Unsecured considered good) VAT Recoverable from State Govts 4,333,170,027 3,819,505,644
Advance to Employees 185,541,653 79,634,565 {including amount due from Directors ` 7,34,526/-(P. Y. ` 7,25,920/-) Maximum amount due duringthe year ` 22,74,561/- (P. Y. ` 14,38,207/-)]
Prepaid Expenses 15,982,879 22,934,045 Advance Income Tax 2,787,481 2,787,481 Fringe Benefit Tax 16,327,763 28,224,128 Tax deducted at source 648,646,410 441,353,173 Others** 2,729,790,718 7,932,246,931 1,927,627,190 6,322,066,226
40,183,377,993 24,596,081,019
* includes ` 5,433,400,000/- (P. Y. ` 973,000,000/-) as unutilized equity contribution and includes`1,500,000,000/- (P. Y. ` 500,000,000/-) earmarked out of the O & M Fund towards Investment for Asset Replacement.
** includes ` 49,970,665/- (P. Y. ` 49,970,665/-) which as per the directive of Hon'ble Delhi High Court is kept infixed deposit by Employees State Insurance Corporation.
25
CURRENT LIABILITIES AND PROVISIONS SCHEDULE-8Amount (`)
Particulars As at31.3.2011
As at31.3.2010
CURRENT LIABILITIESSundry Creditors
For Capital Expenditure - Micro & Small Enterprises - - - Others 6,258,535,842 5,961,719,329
For Goods & Services- Micro & Small Enterprises - - - Others 1,768,551,518 8,027,087,360 2,188,855,726 8,150,575,055
Book Over Draft (Bank) 418,844,836 737,056,550 Deposits from Contractors & Others 6,450,581,204 5,443,648,308 Advance from Customers 3,679,605,307 2,820,167,113 Other Liabilities 1,075,042,887 667,775,973 Pass through Assistance From Govt of 4,768,639,625 1,794,795,769 India for JICA LoanInterest Accrued but not due on Loan from 89,991,152 116,602,566Government of India for JICA Loan 16,482,705,011 11,580,046,279
TOTAL 24,509,792,371 19,730,621,334PROVISIONSProvisions for:
-Retirement Benefits 382,008,969 305,339,631 -Wealth Tax 2,456,090 2,477,590 -Fringe Benefit Tax 14,042,245 25,945,767 -Income Tax 156,470,250 156,470,250 -Expenses 178,600,000 733,577,554 80,000,000 570,233,238
TOTAL 25,243,369,925 20,300,854,572
INCOME FROM OPERATIONS & REAL ESTATE SCHEDULE-9Amount (`)
Particulars For the Year ended on 31.3.2011 For the Year ended on 31.3.2010
INCOME FROM OPERATIONSTraffic Earnings 7,465,858,299 4,133,012,805 Feeder Bus Earning 17,308,923 26,789,648 Rental Earning 1,903,355,484 9,386,522,706 1,112,209,427 5,272,011,880
INCOME FROM REAL ESTATELease Income 983,751,590 983,751,590 292,749,297 292,749,297
TOTAL 10,370,274,296 5,564,761,177
OTHER INCOME SCHEDULE-10Amount (`)
Deferred Grant 489,098,303 159,292,086 Revenue Grant 51,200,000 - Income from Sale of Carbon Credit 35,796,032 - Sale of Tender Documents 13,355,856 16,328,419 Excess Provision Written Back 7,157 165,161,224 Exchange Differences - 191,406,678 Training and Recruitment 64,919,179 24,192,910 Misc. Income 36,742,698 18,531,668Interest from-Bank Deposits (Tax deducted at Source ` 5,03,28,168/- 1,478,496,524 598,524,250
Previous Year ` 2,64,86,951/-)-Employees 7,053,364 3,659,772 -Others 311,715,378 5,489,242
TOTAL 2,488,384,491 1,182,586,249Less:- Transferred to CWIP 838,073,341 526,528,913
NET 1,650,311,150 656,057,336
Particulars For the Year ended on 31.3.2011 For the Year ended on 31.3.2010
Delhi Metro Rail Corporation Limited
26
EMPL
OYEE
COST
Salar
y, all
owna
nces
and b
enefi
ts 1,
946,5
33,73
8 -
18
,998,5
97
10,68
9,725
46
6,697
,608
2,44
2,919
,668
1,05
2,681
,156
3,35
7 11
,765,6
71
11,29
0,792
58
3,669
,116
1,65
9,410
,092
Cont
ribut
ion to
PF an
d oth
er fu
nds
155,7
64,27
2 -
78
0,934
26
6,924
28
,369,8
70
185,1
82,00
0 81
,919,9
61
240
468,3
54
644,3
50
46,00
8,248
12
9,041
,153
Staff
Welf
are E
xpen
ses
55,08
4,748
12
,818
50,94
3 1,
630
18,17
3,220
73
,323,3
59
40,28
6,921
57
,681
22,65
9 32
,270
11,54
1,695
51
,941,2
26
OPER
ATIO
NS A
ND A
DMIN
ISTR
ATIO
N EX
PENS
ESCo
nsult
ancy
and
Prof
essio
nal C
harg
es 19
,219,4
03
11,86
5,150
37
,378,9
09
269,1
76
515,8
18,05
2 58
4,550
,690
7,80
8,264
8,
743,2
64
47,73
7,793
5,
836,8
01
723,7
23,35
8 79
3,849
,480
Trave
lling
and c
onve
yanc
e 16
,291,6
34
-
3,18
0,832
57
1,944
22
,285,5
09
42,32
9,919
15
,246,2
05
15
1,37
8,829
19
1,148
28
,838,5
06
45,65
4,703
Stor
es Co
nsum
ed 26
9,074
,989
1,42
0,727
-
-
2,
934,6
33
273,4
30,34
9 20
4,790
,129
756,6
85
43,68
0 29
,560
2,05
9,486
20
7,679
,540
Tracti
on Ex
pens
es 76
1,528
,230
-
-
-
736,8
00
762,2
65,03
0 40
3,647
,359
-
-
-
-
403,6
47,35
9
Repa
irs an
d M
aint
enan
cePla
nt an
d Mac
hiner
y 18
0,817
,606
17,83
1,670
-
-
2,
365,8
71
201,0
15,14
7 17
6,133
,600
10,35
7,587
10
2 23
2,
412,0
76
188,9
03,38
8
Build
ings
122,6
94,35
7 93
3,062
-
-
2,
067,1
78
125,6
94,59
7 76
,589,1
22
474,3
33
1,85
0 2,
595
9,52
5,905
86
,593,8
05
Othe
rs 21
,171,6
43
7,08
6,946
12
4,530
6,
616
18,32
3,220
46
,712,9
55
8,58
7,769
3,
848,8
51
110,6
75
3,54
2 22
,572,6
04
35,12
3,441
Hous
e Kee
ping E
xpen
ses
350,7
63,64
7 8,
537,6
66
54,93
1 13
3,122
25
,776,8
82
385,2
66,24
8 17
0,380
,214
4,87
4,203
71
,022
54,85
4 11
,519,8
94
186,9
00,18
7
Audi
tors
' Rem
uner
atio
nAu
dit Fe
es -
-
-
-
99
2,700
99
2,700
19
,325
618
794
176
861,4
87
882,4
00
Tax A
udit
Fees
-
-
-
-
661,8
00
661,8
00
12,92
3 41
3 53
1 11
8 57
6,120
59
0,105
Certi
ficat
ion Fe
es 38
6,050
-
-
-
-
38
6,050
4,
831
155
198
44
215,3
72
220,6
00
Insu
ranc
e Exp
ense
s 13
,891,6
95
-
16,99
1 -
1,
183,9
79
15,09
2,665
7,
894,6
84
9 11
2
920,8
22
8,81
5,528
Adve
rtise
men
t 18
,315,1
93
119,9
45
109,4
66
6,01
3,657
3,
414,4
00
27,97
2,661
16
,558,9
34
227,6
01
463,4
84
-
10,93
7,064
28
,187,0
83
Publi
city
62,80
6,711
-
-
-
20
9,661
63
,016,3
72
34,14
8,378
10
7 13
7 30
2,
370,7
15
36,51
9,367
Lega
l Exp
ense
s 13
5,731
-
-
6,
500
6,51
9,409
6,
661,6
40
1,74
1,767
-
-
-
4,
390,9
61
6,13
2,728
Traini
ng an
d Rec
ruitm
ent E
xpen
ses
26,99
1,122
-
-
43
6,788
11
,642,3
79
39,07
0,289
27
,745,2
29
60
150,0
77
17
3,70
2,302
31
,597,6
85
Telep
hone
and O
ther
Com
mun
icatio
n Exp
ense
s 14
,916,1
71
4,33
7 35
3,121
20
4,527
11
,169,8
51
26,64
8,007
13
,307,3
68
422
328,5
73
40,99
0 13
,134,3
00
26,81
1,653
ing an
d Sta
tione
ry 52
,840,7
98
30,98
9 39
1,884
14
7,054
18
,980,4
13
72,39
1,138
21
,812,4
36
4,88
3 37
5,256
13
,801
24,95
7,823
47
,164,1
99
Secu
rity E
xpen
ses
22,26
6,374
6,
126,4
90
204,3
11
-
29,23
2,782
57
,829,9
57
13,00
6,346
4,
580,0
41
1,68
4 37
4 17
,355,8
19
34,94
4,264
Vehic
le Hi
re an
d Main
tena
nce C
harg
es 34
,549,7
79
-
3,76
5,387
86
4,087
43
,662,7
77
82,84
2,030
52
,573,0
25
1,44
0 3,
373,3
46
22,21
2 44
,722,7
07
100,6
92,73
0
Land
Lice
nce F
ee -
-
-
-
59
,989,6
19
59,98
9,619
-
-
-
-
12
7,869
,054
127,8
69,05
4
Loss
on sa
le of
Asse
ts -
-
-
-
-
-
23
6,711
-
-
-
-
23
6,711
Electr
icity
and W
ater
Expe
nses
583,2
86,55
1 4,
576,3
04
55,88
1 6,
611,8
87
21,67
9,708
61
6,210
,331
378,2
54,81
3 14
,693,3
96
64,09
0 21
,096
19,55
9,861
41
2,593
,256
Exte
rnal
Proje
ct Ex
pens
es -
-
-
3,
300,6
69,70
0 -
3,
300,6
69,70
0 -
-
-
78
3,632
,844
-
783,6
32,84
4
Prior
Perio
d Exp
ense
s -
-
-
-
18
,204,6
69
18,20
4,669
-
-
-
-
3,
468,7
70
3,46
8,770
Envir
onm
ent p
rote
ction
Expe
nses
15,22
4,314
-
-
-
26
3,340
15
,487,6
54
8,73
8,622
-
-
-
26
4,611
9,
003,2
33
Passe
nger
Serv
ices E
xpen
ses
123,1
60,50
0 -
-
-
-
12
3,160
,500
63,39
0,663
-
-
-
-
63
,390,6
63
Rate
s & Ta
xes
-
54,54
9,968
-
-
5,
752
54,55
5,720
-
-
-
-
42
,680
42,68
0
Misc
ellan
eous
Expe
nses
21,34
7,741
3,
578,3
14
3,35
4,177
1,
396,2
64
25,45
7,599
55
,134,0
95
12,34
7,030
23
,015
3,79
0,257
1,
638,7
82
26,99
8,772
44
,797,8
56
TOTA
L 4,
889,
062,
997
116,
674,
386
68,8
20,8
94
3,32
8,28
9,60
1 1,
356,
819,
681
9,75
9,66
7,55
9 2,
889,
863,
785
48,6
48,3
76
70,1
49,0
73
803,
456,
421
1,74
4,22
0,12
8 5,
556,
337,
783
EXPE
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Delhi Metro Rail Corporation Limited
27
Delhi Metro Rail Corporation Limited
INTEREST & FINANCE CHARGES SCHEDULE-12Amount (`)
Particulars For the Yearended on 31.03.2011
For the Yearended on 31.03.2010
Finance Charges 12,004,019 29,705,600 Exchange Differences 257,141,871 4,555,349 Interest to Govt of India ( JICA Loan) 1,933,312,805 1,599,583,990
TOTAL 2,202,458,695 1,633,844,939 Less:- Transferred to CWIP Finance Charges including Exchange Differences 253,137,641 27,694,568
Interest to Govt of India ( JICA Loan) 141,673,402 394,811,043 441,643,644 469,338,212
NET 1,807,647,652 1,164,506,727
PRIOR PERIOD INCOME / EXPENDITURE (NET) SCHEDULE-13Amount (`)
Particulars For the Yearended on 31.03.2011
For the Yearended on 31.03.2010
INCOMERental Income 252,503 5,944,796 External Project-Income (201,516,964) - Misc Income 10,725,504 -
TOTAL (190,538,957) 5,944,796
EXPENDITUREConsultancy and Professional Charges 118,804 336,629 Interest on JICA Loan 47,117,772 - Repairs and Maintenance-Others 2,872,901 - Depreciation 126,491,596 12,512,081 Electricity and Water Expenses 2,437,436 - Vehicle Hire and Maintenance Charges 30,460 - External Project Expenses (197,991,232) -
TOTAL (18,922,263) 12,848,710
NET (171,616,694) (6,903,914)
28
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1.2 USE OF ESTIMATES
2.0 FIXED ASSETS
3.0 LAND
4.0 CAPITAL WORK-IN-PROGRESS
The financial statements have been prepared on the historical cost basis in conformity with the statutory provisions of the Companies Act, 1956 and the Statements, Standards and Guidance Notes issued by The Institute of Chartered Accountants of India and in accordance with Generally Accepted Accounting Principles as adopted consistently by the company.
The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of revenues and expenses during the reported period and the reported amounts of assets, liabilities and disclosures of contingent liabilities on the date of financial statements. Actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which the results are crystallised.
2.1 Fixed assets including intangible assets are shown at their acquisition cost / historical cost.2.2 Deposit works / contracts, are capitalised on completion on the basis of statement of account received from
executing agencies and in its absence on the basis of technical assessment of the work executed.2.3 Assets & systems common to more than one section of the project are capitalised on the basis of technical
estimates / assessments.2.4 Machinery spares which can be used only in connection with an item of fixed asset and whose use is
expected to be irregular is capitalised. 2.5 Capital Expenditure on assets not owned by the company is shown as a distinct item in capital work in
progress till the period of completion and thereafter in the fixed assets.2.6 Capitalization of the assets for new section to be opened for public carriage of passengers is done after
ensuring its completeness in all respect as per manuals of practice of Delhi Metro Railway, administrative formalities and compliance of requirements stipulated by Commissioner of Metro Railway Safety imperative for the opening of such section.
2.7 Assets created under Public Private Partnership (PPP) Model, are capitalised at cost incurred by company plus Re.1/- when such Section to be opened for public carriage of passengers after ensuring its completeness in all respects as per Manual of Practice of Delhi Metro Railway, Administrative formalities and compliance of the requirements stipulated by Commissioner of Metro Railway Safety imperative for the opening of the Section.
3.1 Amount received directly by the Land and Building Department, Government of National Capital Territory of Delhi (GNCTD), from Government of India (GOI) and GNCTD for buying land for the company as part of interest-free Subordinate Loan for Land sanctioned to the Company, is treated as interest-free subordinate loan for land. The disbursement therefrom through the Land Acquisition Collector directly to the landowners for the said purpose is adjusted as land cost and the balance shown as advance with Land and Building Department.
3.2 Amount received directly by the Company from GOI and GNCTD for the above stated purpose, are also treated as interest free subordinate loan for land and included in the land cost to the extent of the amount spent for the purpose.
3.3 Payments made/adjusted provisionally towards cost or compensation related to the land including lease-hold land in possession, are treated as cost of the land or Lease-hold land.
3.4 Payment made towards land acquired on temporary basis is amortised over the possession period of theland.
3.5 Compensation, replacement etc. relating to the cost of rehabilitation of Project Affected Persons (PAPs) isbooked to CWIP and on completion is added to the cost of related assets.
3.6 Land is valued on pro-rata basis with reference to the award given by Land Acquisition Collector wherevertransfer value of land is not indicated.
3.7 Cost of land earmarked for property development to be leased for 60 years and above is accounted for as inventory.
4.1 Income pertaining to construction period such as interest, sale of tender documents etc. is adjusted against expenditure during construction.
4.2 Claims including price variation are accounted for on acceptance.
SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF ACCOUNTS AS AT 31.03.2011SCHEDULE-14
Delhi Metro Rail Corporation Limited
29
4.3 Liquidated Damages are accounted for on settlement of final bill.4.4 Administrative and general overheads (net of income) directly attributed to project are allocated in the ratio
of assets capitalised to the total CWIP as at the end of the month of commissioning.
5.1 Interest During Construction (IDC) in respect of qualifying assets commissioned during the year, is allocatedin the ratio which the value of commissioned assets bear to the qualifying CWIP as at the end of the monthof commissioning. In other cases, IDC is allocated based on the date of capitalisation of the last section.
6.1 Depreciation is charged on straight-line basis at the rates prescribed under Schedule XIV of the Companies Act, 1956. However, in case of following assets, depreciation is at the following rates: -
5.0 ALLOCATION OF INTEREST DURING CONSTRUCTION
6. 0 DEPRECIATION
ITEM Rate (%)
Rolling Stock 3.17Escalators & Elevators 3.17Track Work 1.63Air Conditioners and inverters provided to the employees at 25.00residential office except DirectorsMobile Handsets costing more than Rs. 5,000/- each provided to 25.00the employees except DirectorsFeeder buses 19.00
Delhi Metro Rail Corporation Limited
6.2 Fixed Assets costing Rs. 5,000/- or less are depreciated fully in the year of purchase.6.3 Structures in the nature of temporary erection are fully depreciated in the year of its construction.6.4 Capital expenditure in respect of assets not owned by the Company is amortised over a period of five years
beginning after completion of related assets and commencement of its commercial operations.6.5 Intangible assets are amortised on Straight Line Method over a period of legal right to use or 5 years
whichever is earlier. 6.6 Leasehold Assets except land are amortised over the lease term or its useful life (as per Companies Act, 1956)
whichever is shorter.6.7 Depreciation in respect of addition to an existing asset which form integral part of main assets capitalised
earlier is charged over the remaining useful life of that asset.
7.1 Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction.
7.2 Monetary items denominated in foreign currencies are translated at exchange rates as at the reporting date.7.3 Foreign Exchange differences arising in respect of monetary item relating to acquisition of fixed asset are
adjusted to the carrying cost of related fixed asset/Capital Work-in-Progress prior to capitalization. Other exchange differences are recognized as income or expense in the period in which they arise.
Deferred Revenue Expenditure, including preliminary expenses up to 31-03-2004 is charged off over a period of five years, commencing from the year of commercial operation, in the ratio of line length commissioned to the total length (Phase-I). With effect from 2004-05, the same is fully charged off in the year of expenditure.
9.1 Inventories including loose tools other than land are valued at the lower of cost, determined on weighted average basis, and net realisable value.
9.2 Land inventory is valued at the lower of cost and net realisable value.
10.1 Income from fare collection is recognised on the basis of use of tokens, money value of the actual usage in case of Smart Cards and other direct fare collection.
10.2 Income from Feeder Bus is recognised based on yearly attributable amount of the total income as agreed in the contract.
10.3 Income from consultancy / contract services is accounted for on the basis of actual progress / technical assessment of work executed, except in cases where contracts provide otherwise.
7.0 FOREIGN CURRENCY
8.0 MISCELLANEOUS EXPENDITURE
9.0 INVENTORIES
10. 0 REVENUE RECOGNITION
30
10.4 Income from Property development/ Rental Income in respect of land is recognised in accordance with terms and conditions of the contract with licensee / lessee / concessionaire etc.
10.5 Income from lease of land for property development pursuant to lease agreement for 60 years and above is recognised as sale on handing over of land to developer since it transfers substantially risks and rewards incidental to ownership of land.
10.6 Income from sale of scrap is accounted on realisation basis.10.7 Income arising from carbon credit is recognised on the determination of the entitled units where a sale
agreement already exists or on the execution of sale of carbon credits.10.8 Revenue from external project work is recognised as follows:
10.8.1 Cost plus contracts- revenue is recognised by including eligible contractual items of expenditure plus proportionate margin as per contract.
10.8.2 Fixed price contract-revenue represents the cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is determined as a proportion of cost of work performed to-date to the total estimated contract cost.
11.1 The contribution to the Provident Fund for the period is recognized as expense and is charged to the profit &
loss account. Company obligation towards post retirement benefits and baggage allowance, sick leave, earned leave, leave travel concession are actuarially determined and provided for as per AS-15 (Revised).
11.2 The company has set up a Gratuity Trust Fund with LIC of India and gratuity liability to employees is provided for on basis of actuarial valuation.
Insurance claims are accounted for in the year of lodgement and any shortfall/excess is adjusted on the settlement of claims.
Individual items of Prior Period Expenses and Income over Rs. 25,000/- each are recognised.
Individual items of Prepaid Expenses over Rs. 25,000/- each are recognised.
15.1 Grants from the Government/Non-Government or other authorities towards Capital Expenditure for creation of assets are initially shown as ‘Deferred Government Grants’. These are subsequently recognised as income each year over the life of the relevant assets in proportion to depreciation on those assets.
15.2 Grants from the Government/Non-Government or other authorities towards Revenue has been recognised in the profit and loss account under the head ‘other income’.
Interest cost incurred on the funds borrowed specifically for the project and identified therewith is capitalised up to the time of commissioning of the project or part thereof and thereafter charged to revenue to the extent assets are under commercial operation.
17.1 Income tax is determined in accordance with the provisions of the Income Tax Act, 1961.17.2 Deferred tax expense or benefit is recognised on timing differences being the difference between taxable
income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impaired loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there is a change in the estimate of the recoverable amount.
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.
11. RETIREMENT BENEFITS
12.0 INSURANCE CLAIMS
13.0 PRIOR PERIOD EXPENSES AND INCOME
14.0 PREPAID ITEMS
15.0 GRANTS IN AID
16.0 BORROWING COST
17.0 TAXATION
18.0 Impairment of Assets
19.0 Provisions, Contingent Liabilities and Contingent Assets
Delhi Metro Rail Corporation Limited
31
(*) includes ` 14,041.59 Lakhs (P. Y. ` 15,174.70 Lakhs) deposited under protest with the Registrar General, Delhi High Court/L & DO. In addition to the above:(i) Some landowners have filed suites against the Company for alternate land, which cannot be quantified. Liabilities,
if any, in respect of these cases pending with the courts shall be provided after completion of legal proceedings.ii) Municipal Corporation of Delhi (MCD) objected to display of advertisements by DMRC on civil structure on the
ground that as per Municipal Corporation of Delhi Act, 1957, prior approval of the Commissioner as well as sharing of its revenue is required in respect of such display. DMRC filed Special Leave Petition with Hon’ble Supreme Court of India and got stay on 28th March 2008. In the stay order Hon’ble Supreme Court allowed DMRC to erect fresh hoardings or to enter any new contracts in this regard subject to the provisions of Advertisement Policy, accepted by it and approved by the Hon’ble Supreme Court. Further the Hon’ble Supreme Court held that in case MCD raised any demand against DMRC for revenue sharing or gives it any notice for removal of any advertisement (s) put up on the DMRC land on ground that no prior permission was accorded by the municipal bodies or it was not in conformity with the policy specifications or for any other reasons, it will always be open to the DMRC to seek its remedies before an appropriate forum in accordance with law.In the meantime, MCD has served various notices to DMRC for removal of advertisements on the ground that DMRC is displaying the advertisements on MCD land without obtaining permission from MCD and violating the undertaking given by it in regard to acceptance of technical parameters laid down in the policy. Against these notices DMRC filed Civil Writ Petition before Hon’ble High Court of Delhi challenging the above action of MCD claiming that DMRC will continue to maintain its right to advertisement on piers, viaduct and other civil structure.. The Hon’ble High Court after hearing, granted interim stay against the action of MCD and the case is pending before the Hon’ble High Court.
iii) Karnataka Sales Tax Department has issued demand notices to MRM, a consortium comprising of three members i.e. Mitsubishi Corporation, Japan, Rotem Company, Korea & Mitsubishi Electric Corporation, Japan of ̀ 11,135.21 lakhs (P. Y. ̀ 11,135.21 lakhs) for the years 2003-04 to 2006-07, for the indigenous manufacture/assembly of 45 train sets, by Bharat Earth Movers Limited Bangalore (a sub contractor of MRM), MRM requested DMRC to advice further course of action and intimated that in the absence of advice, MRM would claim reimbursement of levy from DMRC along with litigation cost. DMRC intimated that MRM is solely responsible to deal with the above issues at their risk and cost, as DMRC has already discharged contractual obligation by issuing requisite exemption certificates/made reimbursement of sales tax as per contract conditions. Proceedings against MRM for the year 2003-04 and 2004-05 are pending before Karnataka Sales Tax Tribunal and for the year 2005-06 & 2006-07 Karnataka High Court has granted the stay, till the Tribunal decides the matter for the earlier years.
iv) MCD raised a demand for payment of property tax amounting to ` 1200.65 lakhs for various properties of the company which were falling under the jurisdiction of MCD. Pursuant to the order of Hon’ble Supreme Court dated 19th November, 2009, MOUD issued Office Memorandum dated 15th December, 2009, wherein it was recommended that Union of India and its departments will pay Service Charges instead of property tax. DMRC being railway company under the Indian Railway Act is liable to pay service charges. In a meeting held with MCD on 28.03.2011 that DMRC has to pay only service charges for the properties including vacant land falling under jurisdiction of MCD. Also, different rates shall be applicable for operational and non-operational properties. Pending reconciliation of area of constructed properties and vacant land, company has made interim payment of
Delhi Metro Rail Corporation Limited
CONTINGENT LIABILITIES SCHEDULE-15(` in Lakhs )
NOTES ON ACCOUNTS FORMING PART OF ACCOUNTS AS ON 31-03-2011
Particularsa) Claims against the company not acknowledged as debts including foreign
currency claim:- Capital Works 90,869.51 54,704.08- Land compensation cases (*) 19,762.13 19,761.29- Others 35,426.37 3,915.64
b) Disputed Income Tax Demand 6,202.56 6,202.56c) Employees State Insurance Corporation has charged u/s 45C and 45E of the 499.71 499.71
Employees State Insurance Act, 1948 on account of liability of contractor.d) Disputed Service Tax Demand 2,224.08 2,224.08e) Disputed Central Excise Demand 94.94 94.94f ) Demand for Service Charges by Municipal Corporation of Delhi 887.15 Nilg) BSES Rajdhani Power Ltd, BSES Yamuna Power Ltd and North Delhi Power Ltd 1923.69 1,367.92
(Discoms) have raised a demand on the Company towards Electricity Tax.h) Amount deposited with DDA/MCD/L&DO under protest on account of 621.44 619.37
ground rentTotal 1,58,511.58 89,389.59
2010-11 2009-10
32
`Delhi Municipal Corporation an adhoc provision of ` 250.00 lakhs has been made. Final payments shall be made after due reconciliation with these agencies
2. Estimated amount of contracts including foreign currency contracts net of advances, remaining to be executed on capital account and not provided for is ̀ 3,29,671.38 Lakhs (P. Y. ̀ 4,47,508.56 Lakhs).
3.1 MRM had filed a claim of ̀ 549.61 Lakhs (P. Y. ̀ 549.61 Lakhs) plus interest against DMRC for arbitration on account of amount withheld by DMRC towards Custom Duty and Other indirect taxes payments. DMRC filed counter claim (Net of amount held by DMRC) for payments against Customs Duty & other indirect taxes of ` 29,959.30 Lakhs (P.Y. ̀ 27,980.99 Lakhs) including interest, as the same was recoverable as per contract conditions. During the year the Arbitral Tribunal passed the final award in favour of DMRC awarding amount of ` 32,276.15 lakhs plus interest @ 12% p.a. w.e.f. 21st August 2010 till the date of recovery. MRM has since deposited ` 9,550.32 lakhs after adjustment of pending payments against work done under RS1 contract. The company has adjusted net amount paid by MRM in the respective assets. However, MRM has filed a petition in Delhi High Court against this final award. The matter is pending in the Court.
3.2 DMRC’s claim for exemption from Income Tax u/s 10(20-A) of Income Tax Act, 1961 and also allowance of certainexpenses has not been accepted by the Income Tax Authorities. All demands raised have been paid by DMRC under protest. DMRC’s claims, for refund of ̀ 10,652.69 Lakhs (P.Y. ̀ 10,652.69 Lakhs), have been rejected by the Income Tax Commissioner (Appeals). DMRC has filed appeals before Hon’ble Income Tax Appellate Tribunal (ITAT). The Hon’ble Tribunal has dismissed the appeals and directed to take prior approval of Committee on Disputes (COD) and to file an application for revival of the appeals after clearance of the COD is obtained. COD vide its letter No. COD/19/2010 dated 20.05.2010 permitted to pursue appeals on all these cases before ITAT. Company has filed appeals before ITAT which are pending.
3.3 Govt. of National Capital Territory of Delhi (GNCTD) had included DMRC in Sixth Schedule of Delhi Value Added Tax (DVAT) Act 2004 vide Notification No. F.3(22)/Fin. (T&E)/2006-07/DSFTE/354-363 dated 07.09.2006 in respect of purchases made till 31st march 2010. As per the notification, an amount of ̀ 5,176.57 lakhs has been reimbursed by DMRC to its contractors during the year for the work done upto 31.03.2010 and included in the amount recoverable from GNCTD. Total amount recoverable from GNCTD as on 31.03.2011 is ` 43,331.70 lakhs(P. Y. ̀ 38155.13 lakhs).
4. In respect of office space of 4,634.04 sq. mtr. {4,634.04 sq.mtr. acquired from M/s National Building Construction Corporation Ltd. (NBCC) and 669.04 sq. mtr from Credit Rating Information Services of India Limited (CRISIL)} (P. Y. 4,634.04 sq. mtr.) for a sum of ` 2,575.74 Lakhs (P. Y. ` 2,575.74 Lakhs), transfer of title deed is pending and Lease terms are under finalization. In respect of office space acquired from CRISIL, lease terms from NBCC to CRISIL and from CRISIL to DMRC are pending. However, CRISIL has substantiated their property right by producing No Objection Certificate from NBCC. Further, provision for registration charges for above properties have not been made, as the same is exempt/lease period is not determined and execution of lease deed between Ministry of Urban Development (MOUD) and NBCC is pending.
5. Position in respect of land:5.1 The cost of 1,281.521 Acres of land (P. Y. 1,248.585 Acres) amounting to ̀ 96,734.01 Lakhs (P.Y. ̀ 92,622.34Lakhs)
shown under the head “Leasehold Land” for which lease deeds are yet to be finalised has been capitalised (refer accounting policy No. 3.3). This includes 27.413 acres of land (P. Y. 27.663 acres) valuing ` 501.72 Lakhs (P. Y. ̀ . 507.22 Lakhs) based on the interdepartmental rates applicable for that area, for which payment has not been made due to non-receipt of demand note from the land owning departments. Additional demand, if any, will be accounted for on settlement.
5.2 Empowered Group of Ministers (EGOM) in its meeting held on 18.01.08 decided that in case land given by the Ministry of Railways is commercially exploited/proposed to be exploited by DMRC, the charges will be worked out on the basis of commercial market prices applicable for that area, as fixed by L & DO office of Ministry of Urban Development. For other land, the land rate applicable for the surrounding land based on the existing use will be considered for working out lease charges. Against the demand of ` 16,080.00 lakhs (P. Y. ` 16,080.00 lakhs) of Northern Railway for land, ̀ 11,915.39 lakhs (P.Y. ̀ 11,915.39 lakhs) has been paid/provided and capitalized as per Note 5.1 above and balance of ` 4,164.61 lakhs (P.Y. ` 4,164.61 lakhs) has been shown as contingent liability. The reconciliation in respect of land with Railways is under progress.
5.3 During the year, in absence of demand, land lease charges of ` 451.67 Lakhs (P.Y. ` 420.02 Lakhs) in respect of 126.642 Acres (P. Y. 131.062 Acres) land acquired from various land owning departments on returnable basis have been provided on provisional basis on the same rate on which original demand was raised. Additional demand, if any, will be accounted for on settlement.
5.4 Govt land is being acquired for the Mass Rapid Transit System (MRTS) Project from various ministries /departments /autonomous bodies of GOI/GNCTD at inter-departmental transfer rates notified by the Ministry of Urban Development. Private land is being acquired under the Land Acquisition Act, 1894, on the basis of awards issued by the Land Acquisition Collectors of GNCTD. As all these cases are exempted from payment of stamp duty in accordance with the Registration Act 1908 & the Land Acquisition Act, 1894, as such stamp duty is not payable.
5.5 Advance for capital expenditure includes ` 4.04 Lakhs (P.Y. ` 6.81 Lakhs) after adjustment of ` 133.19 Lakhs (P. Y. `133.19 Lakhs), placed at the disposal of Land & Building Department, GNCTD, for obtaining possession of certain properties at Makki Sarai.
5.6 Land & Building Department, GNCTD vide their letter dated 06.05.2011 intimated that out of amount of ` 50,614
313.51 lakhs to MCD on account of Service Charges. On similar lines in the absence of any demand from New
Delhi Metro Rail Corporation Limited
33
Lakhs (P.Y. ̀ 48,484 Lakhs) received by them from GOI, GNCTD and DMRC, for acquiring land for MRTS an amount of `49,474 Lakhs (P.Y. ` 47,303 Lakhs) has been transferred to concerned Land Acquisition Collectors, who have handed over possession of land estimated value of which is ` 52,366 Lakhs (P.Y. ` 50,177 Lakhs) up to 31.3.2011 and capitalised as per note 5.1 above, which is subject to reconciliation.
6.1 In case of Land transferred from Govt. Departments, Ground Rent demanded by various authorities has not been provided because as per fixation of price orders issued by MOUD, ground rent is not leviable.
6.2 In case of Staff Quarters at Pushp Vihar, the provision for Ground Rent up to 31.03.2011 amounting to ` 297.13 Lakhs (P.Y. ̀ 264.11 Lakhs) has been provided, though the issue is yet to be resolved.
7 MOUD vide letter No. K-14011/8/2000-MRTS dated 30.03.2009, has communicated that raising resources through property development is one of the ways of mobilising resources for the project as well as sustainable operations and the word “project” would also include “property development”.
8 Land is being received by DMRC from various land owning agencies for the construction of MRTS project. Out of this, portion of land for the property development is identified only after taking into consideration basic requirements of project implementation and is shown as fixed asset till transaction is finalised as per Accounting Policy No 3.7 of DMRC. During the year, no further land has been earmarked as inventory.
9 The Japan International Cooperation Agency (JICA), formerly known as Japan Bank for International Cooperation (JBIC) has committed to provide total loan of 16,27,510 Lakhs Japanese Yen in six tranches for Phase I and 21,19,760 Lakhs Japanese Yen in four tranches for Phase II to the GOI for implementation of Delhi Mass Rapid Transit System Project by DMRC as the executing agency for implementation of the Project as per details given below:Phase-I— First Tranche in February 1997 of 1,47,600 lakhs Japanese Yen,— Second Tranche in March 2001 of 67,320 lakhs Japanese Yen,— Third Tranche in February 2002 of 2,86,590 lakhs Japanese Yen,— Fourth Tranche in March 2003 of 3,40,120 lakhs Japanese Yen,— Fifth Tranche in March 2004 of 5,92,960 lakhs Japanese Yen, and — Sixth Tranche in March 2005 of 1,92,920 lakhs Japanese Yen, Phase-II— First Tranche in March 2006 of 1,49,000 lakhs Japanese Yen,— Second Tranche in March 2007 of 1, 35,830 lakhs Japanese Yen.— Third Tranche in March 2008 of 7,21,000 lakhs Japanese Yen— Fourth Tranche in March 2009 of 7,77,530 lakhs Japanese Yen— Fifth Tranche in March 2011 of 3,36,400 lakhs Japanese YenThe Loan is disbursed to the GOI as per two procedures viz. reimbursement procedure and commitment procedure. The proceeds of this loan are lent to DMRC by GOI in equivalent INR in terms of Ministry of Urban Development’s letter No K-14011/59/88-UD II dated 12.11.1996. During the year DMRC has provided interest amounting to ̀ 19,333.12 Lakhs (P.Y ̀ 15,995.84 Lakhs) on this loan at the same rate at which the GOI has obtained the loan from the JICA. The Exchange rate fluctuation risk will be shared between GNCTD and the GOI in proportion to their respective share holdings. However, agreement or memorandum of Understanding (MOU) between GOI, GNCTD and DMRC regarding the terms and conditions of the loan is under finalization.Further GOI is providing the amount as Pass through Assistance (PTA) to DMRC for executing the works. Reconciliation of JICA Loan in INR equivalent, interest accrued and service charges payable thereon with Controller of Aid, Accounts & Audit (CAAA) of Ministry of Finance is under progress and necessary adjustment, if any, shall be effected on its completion.
10. During beginning of the year, the company has partially resumed feeder bus operation and accounted for revenue and expenditure in the Natural Heads of Account. Subsequently, new private bus operators were appointed for running the feeder bus services in collaboration with the company. The buses are to ply on the designated routes and with the stipulated fare as decided by the company with the approval of transport authority of GNCTD. As per the arrangement, the operators are required to provide operating staff for operating the buses and be responsible for the maintenance of the buses. The operators are also obligated to pay to the company a pre-determined amount, as agreed in the contract. During the year, ̀ 173.09 lakh (previous year ̀ 267.89 lakh) has been accounted for as revenue from the feeder bus services.
11. Payment to the Statutory Auditors: -
Delhi Metro Rail Corporation Limited
ParticularsAudit Fees 9.00 8.00Tax Audit Fees 6.00 5.35Certification fees 3.50 2.00Reimbursements: - Travelling expenses NIL NIL - Service Tax 1.91 1.58
2010-11 2009-10
(` in Lakhs)
ParticularsAudit Fees 9.00 8.00Tax Audit Fees 6.00 5.35Certification fees 3.50 2.00Reimbursements: - Travelling expenses NIL NIL - Service Tax 1.91 1.58
2010-11 2009-10
34
12. Disclosure in respect of Accounting Standard (AS)-7 (Revised) “Construction Contracts”:
Delhi Metro Rail Corporation Limited
13. Disclosure in respect of Accounting Standard (AS)-11 (Revised) “The Effects of changes in Foreign Exchange Rates”The effect of foreign exchange fluctuation during the year is as under:-(i) The amount of exchange differences (net) debited to the Profit & Loss Account ̀ 154.54 Lakhs (P.Y. debited
` 6.44 Lakhs) (ii) The amount of exchange differences credited to the carrying amount of fixed assets and capital work-in-
progress ̀ 682.27 Lakhs (P.Y. ̀ 5,077.62 Lakhs).14. Disclosure in respect of Accounting Standard (AS)-12 “Accounting of Grants”
During the year, company has received ` 1,701.00 Lakhs (P.Y. ` 92,819.41 Lakhs) as part release of Grant-in Aid as per the details given below:
(` in Lakhs)
Grant received 2010-11 2009-10 Purpose GOI - 7,130.00 For extension of Metro to NOIDAGOI 139.00 2,850.00 For extension of Metro to GurgaonNOIDA - 3,130.00 For extension of Metro to NOIDAHUDA 555.00 11,400.00 For extension of Metro to GurgaonHUDA - 2,775.00 For extension of Metro up to Haryana BorderGDA - 13,000.00 For extension of Metro to Vaishali (Ghaziabad)DDA - 7,500.00 For extension of Line-3 to Dwarka Sub-cityDDA - 7,246.00 For Airport Express Line from New Delhi Railway
Station to Sector-21 DwarkaMOT - 500.00 For development of kiosks at stationsDIAL 722.00 37,288.41 For Airport Express Line from New Delhi Railway
Station to IGI Airport.CISF 285.00 - For construction of additional floor at CISF barracks
at Shastri ParkTotal 1,701.00 92,819.41
from
The total Grant-in-aid received up to 31.03.2011 is 2,75,144.41 Lakhs (P.Y. 2,73,728.41 Lakhs) for extension of Metro Lines, ` NIL (P.Y. 500.00 lakhs) for development of kiosks at stations and 285.00 lakhs (P.Y. Nil) for construction of additional floor at CISF barracks at Shastri Park.As per Accounting Policy 15, during the year, DMRC has recognized ` 4,890.98 Lakhs (P.Y. ` 1,592.92 Lakhs) as income against Deferred Grants.15. Disclosure in respect of Accounting Standard (AS)-15 (Revised) “Employee Benefits”
General description of various defined employees benefits schemes are as under:a) Provident Fund:
DMRC’s Provident Fund is managed by Regional Provident Fund Commissioner. DMRC pays fixedcontribution to provident fund at pre-determined rate. The liability is recognised on accrual basis.
b) Gratuity:DMRC has a defined benefit gratuity plan. Every employee who has rendered continues service of five years or more is entitled to get gratuity at 15 days salary (15/26 x last drawn basic pay, dearness pay plus dearness allowance) for each completed year of service on superannuation, resignation, termination, and disablement or on death. A trust has been formed for this purpose. This scheme is being managed by the Life Insurance Corporation of India (LIC) for which DMRC has taken a Master Policy.The scheme is funded by DMRC and the liability is recognized on the basis of actuarial valuation.
` `` ` `
Particulars As on 31.03.2011 As on 31.03.2010a) Amount of revenue recognised during the year 38,443.01 8,358.80b) Amount of cost incurred during the year 33,282.88 8,034.56c) Amount of advance from clients 26,137.49 25,287.39d) Amount of retentions by client Nil Nile) Amount due from client 1,896.42 Nil
(` in Lakhs)
35
Delhi Metro Rail Corporation Limited
c) Pension:Employee’s Group Superannuation Pension Scheme is managed by LIC of India. This scheme is optional andDMRC’s obligation is limited to pay 2.5% of Basic Pay of the enrolled employee. The contribution to the scheme for the period is grouped under Employee Cost on accrual basis. In respect of deputationists employees, pension contribution is calculated as per Govt. of India Rules and is accounted for on accrual basis.
d) Post Retirement Medical Facility:DMRC has Post-retirement Medical Facility (PRMF), under which retired employee and the spouse are provided medical facility for indoor treatment at the same rate as applicable to regular employee.The liability on this account is recognized on the basis of actuarial valuation.
e) Terminal Benefits:Terminal benefits include settlement at home-town or to the place where he or his family intends to settle in India including Baggage Allowance. Further DMRC has deputationists staff from other organisations for which DMRC is liable to pay exit benefits.The liability on this account is recognized on the basis of actuarial valuation.
f ) Leave:DMRC provides for earned leave benefits (included compensated absence) and half-pay leave to the employees of DMRC, which accrue annually at 30 days & 20 days respectively. Only the leave in the encashable leave account is encashable once in a calendar year while in service and a maximum of 300 days on superannuation. Half pay leave is en-cashable up to the extent of half of such accumulated leave lying at the credit of the employee on his superannuation or on death while in service,The liability on this account is recognized on the basis of actuarial valuation.In respect of deputationists employees, Leave salary contribution is payable to their parent departments @11% of pay drawn (Basic Pay including Dearness Pay & Special Pay) and is accounted for on accrual basis.
g) LTC:DMRC provides financial assistance to the employees in meeting the expenses of travel involved while availing of rest & recreation with their family away from the headquarters at the home town or elsewhere periodically as per DMRC’s policy.The liability on this account is recognized on the basis of actuarial valuation.
h) The summarized position of various defined benefits recognized in the profit & loss account and balance sheet is as under:
(i) Expenses recognized in Profit & Loss Account:
Particulars Gratuity PRMF LTC Leave TerminalBenefits
Current Service Cost C.Y. 334.97 205.75 139.38 318.44 7.93
P.Y. 202.93 190.07 65.95 240.95 7.33
Interest cost on benefit C.Y. 93.31 82.27 - 108.45 4.20
obligation P.Y. 59.47 20.85 - 88.08 2.12
Expected return of plan assets C.Y. 83.31 - - - -
P.Y. (48.30) - - - -
Net actuarial (gain)/loss C.Y. (11.46) 40.08 - 279.70 (15.18)
recognized during the year P.Y. 35.58 488.48 - (181.32) 11.65
Expenses recognized in C.Y. 333.51 328.10 (42.09) 706.59 (3.05)
the Profit & Loss A/c P.Y. 249.68 699.40 65.95 147.71 21.10
(C.Y.) Current Year, (P.Y.) Previous Year
(` in Lakhs)
(iv) Changes in the fair value of plan assets: (` in Lakhs)
36
Particulars Gratuity PRMF LTC Leave TerminalBenefits
Present value of obligation C. Y. 1545.13 1325.31 139.38 1973.13 47.39as at 31.03.2011 - (i) P. Y. 1146.11 997.21 181.47 1362.54 51.42Fair value of plan assets C.Y. 1121.62 - - - -as at 31.03.2011 (ii) P. Y. 685.35 - - - -Difference (ii)– (i) C.Y. (333.51) (1325.31) (139.38) (1973.13) (47.39)
P.Y. (460.76) (997.21) (181.47) (1362.54) (51.42)Net asset/(liability) recognized C.Y. (333.51) (1325.31) (139.38) (1973.13) (47.39)in the Balance Sheet P.Y. (460.76) (997.21) (181.47) (1362.54) (51.42)
(ii) The amount recognized in the Balance Sheet:(` in Lakhs)
Delhi Metro Rail Corporation Limited
Particulars Gratuity PRMF LTC Leave TerminalBenefits
Present value of obligation C. Y. 1146.11 997.21 181.47 1362.54 51.42as at 01.04.2009 P. Y. 856.89 297.81 115.52 1301.77 30.32Interest cost C. Y. 93.31 82.27 - 108.45 4.20
P. Y. 59.47 20.85 - 88.08 2.12Current Service Cost C. Y. 334.97 205.75 (42.09) 318.44 7.93
P. Y. 202.93 190.07 65.95 240.95 7.33Benefits paid C. Y. (30.20) - - (96.00) (0.98)
P. Y. (14.77) - - (86.94)Acquisition Cost/ (Credit) C. Y. 1.37 - - - -
P. Y. - - - - -Net actuarial (gain)/loss on C. Y. (0.43) 40.08 - 279.70 (15.18)obligation P. Y. 41.59 488.48 - (181.32) 11.65 Present value of the defined 31.03.11 1545.13 1325.31 139.38 1973.13 47.39benefit obligation 31.03.10 1146.11 997.21 181.47 1362.54 51.42as at 31.03.2011
(iii) Changes in the present value of the defined benefit obligations: (` in Lakhs)
Particulars Gratuity PRMF LTC Leave TerminalBenefits
Opening balance of Fair Value C.Y. 685.35 - - - -of plan asset P.Y. 413.31Expected return on plan assets C.Y. 83.31 - - - -
P.Y. 48.30 - - - -Acquisition adjustment C.Y. 1.37 - - - -
P.Y. - - - - -Contributions by employer C.Y. 460.76 - - - -
P.Y. 232.50Benefit paid C.Y. (30.20) - - - -
P.Y. (14.77)Actuarial gain/(loss) C.Y. 11.03 - - - -
P.Y. 6.01Closing balance of Fair value C.Y. 1211.62 - - - -of plan assets P.Y. 685.35
37
(v) During the year, DMRC has provided liability towards contribution to the:
Delhi Metro Rail Corporation Limited
(i) Actuarial Assumptions: Principal assumptions used for actuarial valuation are:
• Cost increased by 1% ` 1,145.46 Lakhs
• Cost decreased by 1% ` 876.14 Lakhs
The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
j) The effect of one percentage in the medical cost of PRMF will impact the liability as under:
16. Disclosure in respect of Accounting Standard (AS)-16: “Borrowing Cost”: During the year, ̀ (P.Y. 1,821.33 Lakhs) has been capitalised as borrowing costs.17. Disclosure in respect of Accounting Standard (AS)-17:”Segment Reporting”:
a) Business segment:DMRC’s principal business segments are Metro Operations, Property Development, External Projects andConsultancy.
b) Segment Revenue and Expense:Metro operations - Revenue directly attributable to the segment including income from train operation, feeder bus earnings, rental income of space for kiosks, parking, Shops, Restaurant, Malls and advertisement, sale of tender forms and sale of carbon credit are considered.Property Development - Revenue directly attributable to the segment including rental from leasing of Land,Property and sale of tender forms etc. are considered. External Projects - Revenue is recognised by including eligible contractual items of expenditure plusproportionate margin.Consultancy - Revenue directly attributable to the segment including income from consultancy and sale oftender forms are considered.Expenses directly attributable to the each segment and common expenses allocated on systematic basis are considered as segment expenses.
c) Segment Assets and Liabilities:Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans and advances and capital work in progress, construction stores & advances. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities include liabilities and provisions directly attributable to respective segment.
7,160.36 Lakhs `
Particulars
Gratuity 333.51 249.68PRMF 328.10 699.40LTC (42.09) 65.95Leave 706.59 147.71Terminal benefits (3.05) 21.10
2010-11 2009-10
(` in Lakhs)
i Method used Projected Unit Credit Methodii Discount Rate 8.25%iii Expected rate of return on plan asset- Gratuity 9.25%iv Future salary increase 5.50%
38
Delhi Metro Rail Corporation Limited
A SEGMENT REVENUEOperating Income 93,865.23 52,720.12 9,837.52 2,927.49 38,443.01 8,358.80 2,145.37 3,219.15 144,291.12 67,225.56 Other Income 7,790.86 3,921.83 6,575.90 1,597.75 1,408.36 791.03 727.98 249.96 16,503.11 6,560.57
Less Interest from Fixed Deposit 994.47 351.32 3,484.40 1,570.88 1,326.98 777.49 727.11 244.37 6,532.95 2,944.06 Unallocated incomeTotal Revenue 100,661.62 56,290.63 12,929.02 2,954.36 38,524.40 8,372.34 2,146.24 3,224.74 154,261.27 70,842.07
B SEGMENTS RESULTS (EBDT) 51,770.99 27,386.39 11,762.28 2,467.88 5,241.50 337.78 1,458.04 2,523.25 70,232.80 32,715.30 Less Depreciation 57,439.22 32,572.34 795.84 382.00 7.29 3.66 1.03 5.74 58,243.38 32,963.74
Unallocated expenses 18,076.48 11,645.06 C PROFIT BEFORE TAX (PBT) (5,668.23) (5,185.95) 10,966.44 2,085.88 5,234.21 334.12 1,457.01 2,517.51 (6,087.06) (11,893.50)Add Interest from Fixed Deposit 6,532.95 2,944.06 Less Provision for Taxes (40,115.26) (11,504.37)
Prior Period Adjustments (1,716.17) (69.04)Net Profit (41,385.53) (20,522.85)
D OTHER INFORMATION D.01 SEGMENT ASSETS
Assets 2,617,971.42 1,246,232.59 138,481.32 90,826.29 36,600.35 15,649.88 20,927.55 10,796.14 2,813,980.64 1,363,504.90 Unallocated assets 430,928.93 1,401,475.13 Total Assets 2,617,971.42 1,246,232.59 138,481.32 90,826.29 36,600.35 15,649.88 20,927.55 10,796.14 3,244,909.57 2,764,980.03
D.02 SEGMENT LIABILITIESLiabilities 19,885.14 11,375.55 23,193.29 17,075.69 37,766.62 26,708.85 4,171.16 1,009.44 85,016.21 56,169.53 Unallocated liabilities 1,875,398.51 1,637,123.70 Total Liabilities 19,885.14 11,375.55 23,193.29 17,075.69 37,766.62 26,708.85 4,171.16 1,009.44 1,960,414.72 1,693,293.23
D.03 CAPITAL EXPENDITURE Net Addition to Fixed Assets 1,403,248.90 281,797.75 15,999.34 15,425.86 3.74 15.01 3.94 18.04 1,419,255.92 297,256.66 Net Addition to Fixed Assets-unallocated 4,262.48 7,675.51 Total additions 1,423,518.40 304,932.17
(` in Lakhs)
PARTICULARSOperations Real Estate External Project Consultancy TOTAL
2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10
18. Disclosure in respect of Accounting Standard (AS)-18 “Related Parties Disclosures”a) Key Management Persons:
Shri E. Sreedharan, Managing Director Shri Satish Kumar, Director (Electrical)Shri R.N. Joshi, Director (Finance)Shri Raj Kumar Director (Operations)Shri H. S. Anand, Director (Rolling Stock)Shri Mangu Singh, Director (Works)Shri Kumar Keshav, Director (Project)
b) Disclosure of transactions of DMRC with related parties.(` in Lakhs)
Particulars 2010-11 2009-10Salaries & Allowances 158.52 175.49Contribution to Provident Fund and other Funds, Gratuity & Group Insurance 16.06 13.56Other Benefits 24.00 23.47Total (included in Employees Cost) 198.58 212.52
In addition to the above remuneration:
a) The whole time Directors have been allowed to use the staff car (including for private journeys) subject to recovery as per DMRC’s rules.
b) The provisions for contribution to gratuity, leave encashment and post retirement medical benefits as ascertained on actuarial valuation, amounted to ̀ 124.97 lakhs (P.Y. 116.45 lakhs).
19. Disclosure in respect of Accounting Standard (AS)-19 “Leases”:
19.1 DMRC has taken on lease/rent premises for employees. These lease arrangements are usually renewable on mutually agreed terms but are not non-cancellable. During the year DMRC has paid lease rent (net of recoveries)
`
39
Delhi Metro Rail Corporation Limited
(` in Lakhs)
Operating Lease Not later than one year Later than one year and up to five years Beyond five yearsCurrent Year (2010-11) 17,768.70 61,440.93 330,833.23Previous Year (2009-10) 10,488.86 30,198.49 3,586.06
Particulars 2010-11 2009-10
Profit after taxation, prior period adjustments & tax Adjustments for the earlier (41,385.53) (20,522.86)years as per Profit and Loss account (` in Lakhs)
Weighted average number of equity shares outstanding:-
Basic 91,568,329 70,443,444
Diluted 93,894,243 70,646,657
Basic Earning Per Share (in rupees) (45.20) (29.13)(Face value of ` 1,000/- per share)
Diluted Earning Per Share (in rupees) (45.20) (29.13)(Face value of ` 1,000/- per share)
20. Disclosure in respect of Accounting Standard (AS)- 20: Earning per Share:(` in Lakhs)
Particulars As on 31.03.2011 As on 31.03.2010
A -Deferred Tax Liability
I-Difference between Carrying
Amount of Fixed Assets 2,20,601.38 1,32,115.82
Total - A 2,20,601.38 1,32,115.82
B -Deferred Tax Assets
I-Unabsorbed Depreciation as per Income Tax Returns 1,44,748.45 96,555.52
II-Expenses Disallowed under Section 43 B of the Income Tax Act 541.58 339.64
Total – B 1,45,290.03 96,895.16
Net Deferred Tax Liability 75,311.35 35,220.66
21. Disclosure in respect of Accounting Standard (AS)-22 “Accounting for Taxes on Income”:Break-up of deferred tax asset/liability into major components is as under:
(` in Lakhs)
Particulars of Assets As on 31-03-2011 As on 31-03-2009
Gross Carrying value of Assets 331,451.60 50,787.68
Accumulated Depreciation 4,584.26 3,145.25
Depreciation for the year 1,439.01 689.42
Disclosure of Gross carrying value and depreciation on lease business assets:
(` in Lakhs)
amounting to 319.55 Lakhs (P.Y. 305.01 Lakhs) and included under the head Expenditure-Salaries & Wages/ Expenditure During Construction (EDC).
19.2 DMRC has leased space for shops, kiosks, etc. on stations and buildings at other sites on the basis of operating leaseto various parties. Future minimum lease rentals receivable for all operating leases are as under:
` `
22. Disclosure in respect of Accounting Standard (AS)-28 “Impairment of Assets”:
During the year, DMRC assessed the impairment loss of assets and is of the opinion that assets of MRTS Project have been recently capitalized pursuant to its completion. As the project has a long life and no indication exists for the impairment of the assets, therefore, it is considered that during the year, there is no impairment loss of assets.
41
Delhi Metro Rail Corporation Limited
26. DMRC has taken-up construction of Metro project on behalf of Kerala State Government. Up to 31.03.2011, Kerala State Government released ` 3066.67 lakhs for taking up preliminary and preparatory works, against which, expenses incurred `193.05 lakhs. Pending signing of agreement with Kerala State Government, the same has been shown as external project expenditure as well as revenue.
27. Company had entered into Concession Contract for Design, Installation, Commissioning, Operation and Maintenance of Airport Metro Express Line under Public Private Partnership (PPP) model with Delhi Airport Metro Express Private Limited. Due to non-compliance of contractual provisions by the concessionaire, the company has encashed Bank Guarantee for ` 34.87 crore in lieu of liquidated Damage (LD). On protest by the concessionaire, a committee has been constituted to review the imposition of LD. Pending decision of the Committee, the recovered amount has been shown as “Deposit from Others” in Schedule No. 8.
28. DMRC is not a Manufacturing Undertaking, hence the provisions for disclosure of licensed and installed capacity are not applicable.
29. Environmental protection expenditure relating to utilities diversions, tree cutting and plantation etc. as and when accrued, is accounted for, in the normal course of events during execution of the project in terms of contractual provisions of the contract.
30. In respect of supply, installation, testing and commissioning contracts, expenditure is booked to capital work in progress as per contractual milestones.
31. Some debit/credit balances of parties are subject to confirmation and reconciliation, consequential impact thereof, if any, remains unascertained.
32. Additional information in respect of sale of land (inventory): -
Details of land 2010-11 2009-10
Lease/ transfer Quantity (Acres) (` in Lakhs)
Opening Balance 2.788 155.87 2.788 155.87
Purchase / (Transfer) - - - -
Sale / Lease - - - -
Closing Balance 2.788 155.87 2.788 155.87
Value Quantity Value(Acres) (` in Lakhs)
33. Information in respect of provisions of Micro, Small and Medium Enterprises Development Act, 2006 is ` NIL (P. Y. ̀ . NIL).
34. Previous year’s figures have been regrouped/rearranged/reclassified, wherever necessary, to make them comparable to the current year’s presentation.
35. Figures have been rounded to the nearest rupee.
As per our report of even date annexedFor S. N. Nanda & Co.Chartered Accountant
S. N. NandaPartner Company Secretary Director Finance Managing DirectorMembership No.5909
Date: 01.07.2011Place: New Delhi
P. K. Gupta R. N. Joshi E. Sreedharan
42
Particulars For the yearended 31.3.2011
For the yearended 31.3.2010
A. CASH FLOW FROM OPERATING ACTIVITIESNet Profit/Loss after tax (4,138,553,085) (2,052,285,620)Adjustment for:-Loss due to Assets Written off (860,203) 236,711 Depreciation 5,824,338,409 3,296,374,346Prior Period Expenses Adjustment 126,491,596 12,512,081 Deferred Tax Liability 4,009,069,470 1,147,959,133 Miscllaneous Expenditure written off - 560,072 Interest & Finance Charges 1,807,647,652 1,164,506,727 Deferred Government Grant (489,098,303) (159,292,086)Exchange rate variation 15,454,183 507,118,231 Operating Profit before Working Capital Changes 7,154,489,719 3,917,689,595 Adjustment for:-Inventories (102,633,593) (32,120,983)Sundry Debtors (88,873,306) (685,281,129)Other Current Assets (175,878,904) 44,566,001Loans and Advances (1,610,180,705) (1,263,493,297)Provisions 163,344,316 (275,344,975)Current Liabilities 4,718,713,854 2,173,164,987 Net Cash From Operating Activities 10,058,981,381 3,879,180,199 B. CASH FLOW FROM INVESTING ACTIVITIESFixed Assets (142,382,857,004) (30,495,127,113)Capital Work In Progress 97,714,450,756 (39,127,110,884)Construction stores & Advances 6,312,779,225 7,451,729,590 Net Cash From Investing Activities (38,355,627,023) (62,170,508,407)C. CASH FLOW FROM FINANCING ACTIVITIESShare Capital & Share Application Money 25,783,400,000 16,584,500,000 Grants received during the year 170,059,013 9,281,940,988 Loans raised during the year 17,760,564,747 29,476,167,234 Interest & Finance Charges (1,807,647,652) (1,164,506,727)Net Cash From Financing Activities 41,906,376,108 54,178,101,495 D. Net changes in cash & Cash equivalents ( A+B+C) 13,609,730,466 (4,113,226,713)E. Cash & Cash Equivalents ( Opening Balance ) 15,585,979,213 19,699,205,926 F. Cash & Cash Equivalents ( Closing Balance )* 29,195,709,679 15,585,979,213
* (a) includes 5,433,400,000/- (P.Y. ` 973,000,000/-) as unutilized equity contribution and includes 1,500,000,000/-(P.Y. ` 500,000,000/-) earmarked out of the O & M Fund towards Investment for Asset Replacement.
(b) includes ` 49,970,665/- (P.Y. ` 49,970,665/-) which as per the directive of Hon'ble Delhi High Court is kept in fixeddeposit by Employees State Insurance Corporation.
(c) includes FDR for ` Nil (P.Y. ` 5,17,83,598/-) under Bank Lien for LC & Others
For S N Nanda & CoChartered Accountants
S. N. Nanda P. K. Gupta R. N. Joshi E. SreedharanPartner Company Secretary Director Finance Managing DirectorMembership No.5909
Date: 01.07.2011Place: New Delhi
` `
Amount ( )`
Cash Flow Statement For The Year Ended 31.03.2011
43
1. Registration Details
Registration Number 68150 State Code 55
Balance Sheet Date 31.03.2011
2. Capital Raised During the year (In ` Thousand)
Public Issue NIL Right Issue 21,323,000
Bonus Issue NIL Private Placement NIL
3. Position of Mobilisation and Deployment of Funds (In ` Thousand)
Total Liabilities 332,434,227 Total Assets 332,434,227
Sources of Funds Application of Funds
Paid Up Capital 108,490,504 Net Fixed Assets 284,307,579
Reserves and Surplus - Investment NIL
Deferred Grant 27,902,251 Net Current Assets 14,940,008
Secured Loans NIL Misc. Expenditure -
Unsecured Loans 163,266,967 Accumulated Losses 7,943,270
Net Deferred Tax Liability 7,531,135
4. Performance of the Company (In ` Thousand)
Turnover 16,079,423 Total Expenditure 16,206,451
Profit/Loss before Tax (127,028) Profit after Tax (4,138,553)
Earning per share (45.20) Dividend Rate (%) NIL
(in `)
5. Generic Name of Principal Product of the Company (as per monetary terms)
Traffic Operation (Metro)
Real Estate (Property Development)
Consultancy Services
External Project Works
For S N Nanda & Co
Chartered Accountants
S. N. Nanda P. K. Gupta R. N. Joshi E. SreedharanPartner Company Secretary Director Finance Managing DirectorMembership No.5909
Date: 01.07.2011Place: New Delhi
Abstract Of Balance Sheet And Company's General Business Profile
44
To, The Members Delhi Metro Rail Corporation Ltd.New Delhi
st1. We have audited the attached Balance Sheet of DELHI METRO RAIL CORPORATION LIMITED New Delhi as at 31 March 2011 and also the Profit & Loss Account and Cash Flow Statement 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 the 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 (Auditors’ Report) Order, 2003 as amended by the Companies (Auditor’s Report) (Amendment) Order, 2004, issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act. 1956, and on the basis of such checks of the books and records of the company are considered appropriate and according to 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. Further to our comments in Annexure referred to in paragraph 3 above 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 purpose of our audit;
ii) In our opinion proper books of accounts a required by law have been kept by the Company so far as it appears from our examination of those books;
iii) The Balance Sheet Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with, the-books of accounts;
iv) In our opinion the Balance Sheet, Profit and. Loss Account and Cash Flow statement, dealt with by this report comply with the applicable Accounting Standards referred tom sub-section (3C) of Section 211 of the Companies Act, 1956.
v) According to the information and explanations given to us, the Company is a Government Company, therefore, provisions of Section 274(1)(g) of the Companies Act, 1956 are not applicable pursuant to the Gazette notification No. GSR 829(E) dated 21-10-2003 issued by Government of lndia.
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 accounting policies, notes thereon give the information as 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 Balance Sheet of the State of Affair of the Company as at 31st March, 2011,
(b) In the ease of Profit & Loss Account of the Loss for the year ended on that date.
(c) In the case of Cash Flow Statement of the cash flows for the year ended on that date.
For S. N. Nanda & Co. Chartered Accountants
Firm Registration No. 000685N
(S. N. Nanda)
PartnerMembership No. 005909
Place : New Delhi Date : 1st July 2011
Auditor’s Report
45
Auditor's Report
Annexure Referred to in paragraph 3 of our report of even date to the members On thestAccounts for the year ended 31 March, 2011
i. (a) The Company have maintained proper records showing full particulars, including quantitative detailsand situation of fixed assets.
(b) All the assets have been physically verified by the management during the year. No materialdiscrepancies were noticed on such verification.
(c) In our opinion and as per the information and explanations & given to us, during the year the Companyhas not disposed off substantial part of its fixed assets affecting the going concern status of the Company.
ii. (a) According to the information and explanations given to us, during the year the inventories have been gotphysically verified by the management through an independent professional firm. In our opinion, thefrequency of verification of stores verified is reasonable.
(b) On our opinion and according to the information and explanations given to us, the procedures of physicalverification of inventories followed by the management are reasonable and adequate in relation to thesize of the company and the nature of its business.
(c) In the basis of our examination of inventory records, in our opinion, the Company is maintaining properrecords of inventory. As explained to us no material discrepancy were noticed on physical verification ofinventory as compared to book records.
iii. According to the information and explanations given and records produced before us the company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Hence no comments are required under para 4(iii) (b) to(g) of the Companies (Auditors’ Report) Order, 2003.
iv. According to the information and explanations given to us, in our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventories, fixed assets, and sale/lease of land/building and sale of services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.
v. According to the information and explanations given and the records produced before us, if ere are n contracts or arrangements, which are required to be entered in the register maintained under Section 301 of the Companies Act, 1956.
vi. According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 58A &- 58AA of the Act and the rules framed thereunder.
vii. In our opinion, the Company has an internal audit system, commensurate with the size of the Company and the nature of its business. The internal audit system needs to be strengthened.
viii. According to the information and explanations given to us, the Central Government has riot prescribed maintenance of cost records for the Company under section 209(l)(d) of the companies Act, 1956.
ix. (a) According to the information aid explanations given to-us and the records produced before us. in ouropinion the Company is regular in depositing undisputed statutory dues including Provident Fund,Employees’ State Insurance Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities. As per records produced before us there are nodues which were outstanding as on 3l March,2011 for a period over six months from the date the samebecame payable.
(b) According to the information and explanations given to us, the Company has no undisputed dues. x. In our opinion and according to the information and explanations given to us, the accumulated losses of the
Company are less than 50% of its net worth. The company has not incurred cash losses in the current financialyear nor in immediately preceding financial year.
xi. In our opinion and according to the information and explanations given to us, during the year the Company hasnot availed any loan from financial institution or Bank or debenture holder attracting the provisions of thisParagraph.
xii. According to the information and exp1nations given to us, the Company has not granted any loans andadvances on the basis of security by way of pledge of shares, debentures and securities.
xiii. In our opinion, the provisions of any special statue applicable to chit fund, nidhi mutual benefit fund/society arenot applicable to the Company.
xiv. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments.
xv. As per the information provided and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions.
xvi. In our opinion and according to the information and explanations given to us, the term loans have been appliedfor the purpose for which they were obtained.
xvii. According to the information and explanations given to us, and on an overall examination of the Balance Sheetof the Company, in our opinion, the company has not raised any short-term funds. Hence, its usage for long-terminvestments is not applicable.
xviii. According to the information given to us and records produced, the Company has not made any preferentialallotment of shares to parties and companies listed in the register maintained under Section 301 of theCompanies Act, 1956.
xix. According to the information and explanations given to us, the Company has not issued and bentures.xx. The Company has not raised any money by issue of shares to public during the year. xxi. During the course of our examination of the books and records of the Company, carried out in accordance with
generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the year nor have been informed of such case by the management.
For S. N. Nanda & Co. Chartered Accountants
Firm Registration No. 000685N
(S. N. Nanda) Partner
Membership No. 5909 Place: New Delhi
stDate :1 July 2011
46
Auditor' Report
47
Comments of The Comptroller and Auditor General of India
To,
The Managing Director,
Delhi Metro Rail Corporation Limited,
Metro Bhawan, Barakhamba Road,
New Delhi-110001
Sub: Comments of the Comptroller & Auditor General of India under Section 619 (4) of the Companies Act, 1956 on
the accounts of Delhi Metro Rail Corporation Limited for the year ended 31st March 2011.
Sir,
l am to forward herewith the comments of the Comptroller and Auditor General of India under Section 619(4) of the stCompanies Act, 1956 on the accounts of Delhi Metro Rail Corporation Limited for the year ended 31 March 2011.
The receipt of the letter may kindly be acknowledged.
Yours faithfully,
End: As above
(John K. Sellate)
Pr. Director of Commercial Audit &
Ex-Officio Member, Audit Board-IV
dk;kZy; iz/kku funs’kd okf.kfT;d ys[kk ijh{kk,oa insu lnL;] ys[kk ijh{kk cksMZ+ &IV] ubZ fnYyhOffice of the Principal Director of Commercial Audit & Ex-officio Member, Audit Board-IV, New Delhi.
No. RAP/DMRC/AA./2010-11 /1870 Dated: 12.08.2011
Confidential
vkBok¡ o uok¡ ry] ladk; Hkou] 10] cgknqj 'kkg t+Qj ekxZ] ubZ fnYyh&1100028th & 9th Floor, Annexe Building, 10, Bahadur Shah Zafar Marg, New Delhi-110002
Tel. / nwjHkk"k : 23239413,23239415,23239419, 23239420, QSDl /Fax:23239416, bZesy / Email: [email protected]
48
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF DELHI METRO RAIL
stCORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2011.
The preparation of financial statements of Delhi Metro Rail Corporation Limited for the year ended31st March 2011 in accordance with the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 619(2) of the Companies Act 1956 are responsible for expressing opinion on these financial statement under section 227 of the Companies Act, 1956 based on the independent audit in accordance with the auditing and assurance standards prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 01.07.2011.
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 Delhi Metro Rail Corporation Limited for the year ended 2011. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.
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 Auditors’ report under section 619(4) of the Companies Act, 1956.
For and on the behalf of the Comptroller and Auditor General of India
(Jehn K. Sellate) Place: New Delhi. Pr. Director of Commercial Audit &Date 12.08.2011 Ex-Officio Member, Audit Board-IV
Annual Report2010-2011
Delhi Metro Rail Corporation Ltd.Registered office
Metro Bhawan, Fire Brigade laneBarakhamba Road, New Delhi-110001, India Phone No-23417910/12; Fax No-23417921
