Railway Book Design East and West Railway 2016

CHHATTISGARH�EAST-WEST�RAILWAY�LIMITED

(A�Subsidiary�of�SECL)

THIRD�ANNUAL�REPORT�2015-16

Project Execution Agreement on 05-04-2014 at

SECL HEAD QUARTER

CONTENTS

Reference Information 02

Board of Directors 03

Notice of Annual General Meeting 05

Chairman’s Statement 07

Directors’ Profile 10

Directors’ Report 16

Information U/s 134 (3) (m) of the Companies Act, 2013 27

Particulars of Contracts/Arrangements with related parties referred to 28

in sub-section (1) of section 188 of the Companies Act, 2013

Extract of Annual Return of the Company 30

Comments of the C&AG of India 38

Auditors’ Report 40

Balance Sheet as at 31st March, 2016 50

Statement of Profit and Loss for the year ended 31st March, 2016 51

Cash Flow Statement for the year ended 31st March, 2016 52

Notes forming part of the Balance Sheet and Statement of Profit & loss 53

Annexure-I & IX under SEBI (LODR), 2015 (as per SEBI guidelines) 68

CEO & CFO Certification 72

1

CHHATTISGARH EAST WEST RAILWAY LIMILEDA Subsidiary of secl

3rd Annual Report 2015-16

STATUTORY AUDITORS

M/s. A D B & Co.

Chartered Accountants,

First Floor,

Mahavir Gaushala Complex

K.K. Road, Moudhapara Raipur (Chhattisgarh)

BANKERS

State Bank of India

69 Mahadev Ghat Road,

Sundarnagar Branch

Raipur-492013, Chhattishgarh

Axis Bank,

Tagore Nagar Branch, Pachpedi Naka,

Pujari Chambers, Block B1, NH 43

Raipur-492001,

Chhattisgarh

PRACTISING COMPANY

SECRETARY

M/s. AGR Reddy & Co.

Company Secretaries

#202, Pavani Annexe

Banjara Hills, Road No.2

Hyderabad - 500034

REGISTERED OFFICE

Chhattisgarh East-West Railway Limited

Mahadev Ghat Road,

Raipura Chowk

Raipur- 492013 (Chhattisgarh)

BOARD OF DIRECTORS

Shri Ambika Prasad Panda - Chairman (w.e.f. 10.08.2013)

Dr. Rama Shankar Jha - Director (w.e.f. 08.11.2014)

Shri Kuldip Prasad - Director (w.e.f. 04.07.2016)

Shri Sanjay Rastogi - Director (w.e.f. 25.03.2013)

Shri Anil kumar Gupta - Director (w.e.f. 27.11.2015)

Shri Sunil kumar Mishra - Director (w.e.f. 04.05.2013)

Shri Achal Khare - Director (w.e.f. 10.06.2016)

CHIEF EXECUTIVE OFFICER - Shri Biswajit Choudhury

CHIEF OPERATING OFFICER - Shri Rajesh Khare

CHIEF FINANCIAL OFFICER - Shri Anup Agarwal

REFERENCE INFORMATION

2



DIRECTORS (2015-16)

(DURING 2015-16)

Shri A.P. Panda,

Director (Finance), SECL

CHAIRMAN (2015-16)

(w.e.f. 10.08.2013)

(w.e.f. 12.12.2013)Shri R.P. Thakur

Director (Technical) Operations, SECL

(w.e.f. 08.11.2014)Shri R.S. Jha

Director (Personnel), SECL

(Up to 27.11.2015)Shri K.K. Garg

Director (Finance), IRCON

(w.e.f. 25.03.2013)Shri Sanjay Rastogi

Executive Director, IRCON

(w.e.f. 04.05.2013)Shri Sunil Mishra

Managing Director, CSIDCL

(Up to 17.09.2015)Shri Debraj Panda

Divisional Railway Manager, SECR

Shri Ravinder Goyal

Divisional Railway Manager, SECR(w.e.f. 17.09.2015)

BOARD OF DIRECTORS

Shri A.K. Gupta

GM (PPP), IRCON (w.e.f. 27.11.2015)

3



Shri Sunil Mishra


Dr. R.S. JhaDirector

(Personnel), SECL

Shri A.K. Gupta

GM (PPP),

IRCON

Shri Achal Khare

ED/Traffic/Civil,

Railway Board

(AS ON 08.07.2016)

DIRECTORS

Shri A.P. Panda,


CHAIRMAN

BOARD OF DIRECTORS

Shri Kuldip PrasadDirector

(Technical) & Operations, SECL

Shri Sanjay RastogiExecutive Director,

IRCON

4



NOTICE OF ANNUAL GENERAL MEETING

To,

All Members,

Notice is hereby given to all the Shareholders of CHHATTISGARH EAST-WEST RAILWAY LIMITED that the

Third Annual General Meeting of the Company will be held on Friday, the 08th July, 2016 at 12:30 P.M at

the Registered Office of the Company at MAHADEV GHAT ROAD, RAIPURA CHOWK, RAIPUR – 492 013

(Chhattisgarh), to transact the following business :

ORDINARY BUSINESS :

1. To receive, consider and adopt the audited Financial Statements for the year ended 31st March, 2016

together with the Reports of Board of Directors and Auditors thereon and Comments of the Comptroller &

Auditor General of India.

2. To re-appoint Shri A.P. Panda (DIN: 06664375), as Director, who is liable to retire by rotation in terms of

Section 152(6) of the Companies Act, 2013 and being eligible, offers himself for re-appointment.

3. To re-appoint Dr. R.S. Jha (DIN: 07005297), as Director, who is liable to retire by rotation in terms of Section

152(6) of the Companies Act, 2013 and being eligible, offers himself for re-appointment.

By order of the Board of Directors

For Chhattisgarh East-West Railway Limited

Sd/-

(A.P. Panda)

Chairman

DIN: 06664375

Registered Office:

Mahadev Ghat Road, Raipura Chowk

Raipur (CG) – 492013

Date: 04th July, 2016

5



DISTRIBUTION :

1. M/s South Eastern Coalfields Limited, Bilaspur. (Member)

2. Shri A.P. Panda, D(F), SECL & Chairman (CEWRL). (Member)

3. Dr. R.S. Jha, D(P), SECL & Director (CEWRL). (Member)

4. Shri Kuldip Prasad, D(T)O, SECL & Director (CEWRL). (Member)

5. M/s Ircon International Limited, New Delhi. (Member)

6. Shri Sanjay Rastogi, ED (IRCON) & Director (CEWRL). (Member)

7. Shri Sunil Mishra, MD (CSIDCL) & Director (CEWRL). (Member)

8. Shri A.K. Gupta, GM (PPP), IRCON & Director (CEWRL).

9. Shri Achal Khare, ED/Traffic/PPP (Railway Board) & Director (CEWRL).

10. M/s A D B & Company, Statutory Auditor, Raipur.

NOTES:

1. The Shareholders are requested to give their consent in writing or by electronic mode for calling the Annual

General Meeting at a shorter notice pursuant to the provisions of the Section 101(1) of the Companies Act,

2013.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO

ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY.

THE PROXY FORM SHOULD BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LATER

THAN FORTY-EIGHT HOURS (48 HRS.) BEFORE THE TIME OF COMMENCEMENT OF THE MEETING. BLANK

PROXY FORM (FORM MGT – 11) IS ATTACHED.

3. Corporate Member(s) are requested to send to the Registered Office of the Company, a duly certified copy

of the Board Resolution, pursuant to Section 113 of the Companies Act, 2013, authorizing their

representative to attend and vote at the Annual General Meeting.

4. All documents referred to in the notices and annexure thereto along with other mandatory

registers/documents are open for inspection at the registered office of the Company on all working days

during business hours, prior to the date of 03rd Annual General Meeting.

5. Pursuant to the provisions of Section 171(1)(b) and 189(4) of the Companies Act, 2013, the registers required

to be kept open for inspection at every Annual General Meeting of the company, shall accessible during the

continuance of the meeting to any person having the right to attend the meeting.

(With a request to make it convenient to attend the meeting personally or through Proxy (of Individual

member)/ Authorized representative, as applicable):

6



CHAIRMAN’S STATEMENT

It gives me immense pleasure to welcome you on behalf of the Board of Directors to the 3rd Annual General Meeting

of Chhattisgarh East West Railway Limited and present the Annual Report of your Company for the financial year

2015-16. The Directors’ Report and the Audited Balance sheet for the year ending 31st March, 2016 have already

been provided to all the shareholders. With your permission, I take them as read.

Rail infrastructure

As we all know, rail mode is an energy efficient system which not only facilitates an economic mode of long distance

conveyance but also provides an ideal mechanism for transportation of bulk commodities at cheaper rate. Indian

Railways is considered to be operating the largest rail system in the world under single management. It oversees

mammoth operation of running more than 21000 trains on daily basis by connecting about 7140 stations across the

rail network of 64,600 km thereby integrating the diversified regions of the country.

Over a period of 65 years since 1951, operation of Indian Railways has gone up multi-fold due to increase in the

passenger size by almost 300 times and growth in freight volume to 1200 million tonnes from meagre 73 million

tonnes per annum. In order to cater to the growing needs arising out of increasing urbanisation and

industrialisation, the rail system requires a transformation through an enabling infrastructure, which is the greatest

challenge ahead. Accordingly, Government has been investing heavily on rail infrastructure apart from seeking

support through various policy initiatives such as private participation through PPP model, inviting FDI, setting up of

SPVs and private investment in certain segments. Modernisation of rail system focus primarily on the two drivers i.e.

safety and growth. It relies on multi-pronged strategies such as to upgrade core assets like track & bridges,

signalling, rolling stock, stations & terminals etc, adopt different revenue models, mobilise resources from various

corners, create enablers to bring efficiency and improvement in the overall delivery system.

Revenue potential

Analytical reports indicate that during the period FY07-15, the revenue generation of railways has surged ahead

which manifests the inherent strength in the rail system. Operational data shows that revenue has been growing at a

CAGR of 7.9 percent during FY 07-15 and likely to grow at a CAGR of 9.07 percent through FY’20. Although freight

revenue accounts for more than two-third of the total component and cross subsidises the passenger revenue at

Dear Shareholders,

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present, it is expected that the passenger earnings will grow rapidly due to increase in capacity, provision for better

amenities, improvement in quality of service, cost effectiveness etc. Passenger volume has been expanding at a

CAGR of 3.9 percent during FY 07-15 and likely to grow at CAGR of 7.1 percent through FY’20 to reach a staggering

size of 15 billion. Freight traffic, considered as a barometer of economic activities, has also grown at a CAGR of 5.01

percent from FY’07 and likely to double the present volume to reach two billion tonnes annually by FY’20.

The growing size of rail system provide enormous opportunities to support and share. The investor friendly policies

expand the scope of private participation for capacity augmentation by laying new rail routes, expanding existing

lines, conversion of rail lines, creation and upgradation of stations, development of cargo handling terminals,

electrification and improvement in signalling & telecom facilities etc. The greatest advantage of rail mode in the

competitive scenario is that other modes of transportation is either significantly expensive or yet to be developed,

so rivalry is low.

Policy framework through public private participative (PPP) model for rail connectivity offers ample opportunity to

the long term business players to invest and share the return on sustainable basis. It will not be out of place to

mention that when the resource providers meet, the venture creates synergy. As coal is the leading commodity

which accounts for almost half of the freight business segment of railways in India, venturing through PPP model to

transport coal is likely to pay dividend to the players. The ‘Make in India’ campaign and government’s commitment

to ‘24x7 power supply’ will boost coal production to provide enough input for ensuring sustainable traffic over a

foreseeable future to attract investment and support from the beneficiaries.

Rail Corridor

As the work of East West rail corridor has commenced after East rail corridor, the experiences gained during the

progress so far have been put to prepare the DPR envisaging an integrated corridor with connectivity to mines of

SECL for coal evacuation. Accordingly, the rail alignment for the East West Rail Corridor project has been crystallized

by including about 35 Kms of Feeder lines to connect Kartali, Ambica, Saraipali and Vijay West Mines along with

connectivity to Kusmunda, Junadih and Dipka Sidings of SECL. M/s CARE Kalypto Risk Technologies & Advisory

Services Pvt. Ltd. has been appointed as the financial appraiser of the project. The project is spread over two districts

of Chhattisgarh viz., Bilaspur and Korba, the process of land acquisition is being carried out separately through

district authorities. Award for transfer of Private land in Bilaspur District has been issued and issuance of No

Objection Certificate (NoC)s on land owned by SEC Rly and SECL are under process. NoCs for transfer of Govt. Land

in Bilaspur District and Korba Dist. have been obtained. The proposal for diversion of forest land is under process.

The preparation of ‘wild life conservation plan’ has been entrusted to TFRI, Jabalpur. Tenders have been floated to

award construction works on the rail corridor.

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Acknowledgements

I acknowledge the support of all stakeholders to develop the Rail Corridor in this region. Progress so far in the

Corridor would not have been possible without the unstinted efforts of those, who believed in the venture and

extended their hands to join our commitment. I express my sincere appreciation on behalf of the Board of Directors,

Shareholders and the management of the Company to Ministry of Coal, Ministry of Railways, Government of

Chhattisgarh, South East Central Railway, Coal India Limited and South Eastern Coalfields Limited for their constant

guidance and support. I shall continue to seek the same in future too. I also sincerely thank the team members for

their dedication, commitment and hard work for execution of the project.

Thanking you,

Sd/-

(A. P. Panda)

Chairman

DIN: 06664375

9



Shri Ambika Prasad Panda


Shri A.P. Panda (48 Years), D(F), SECL took the charge of Chairman, Chhattisgarh East-West

Railway Limited on 10th August, 2013. Shri Panda is a qualified Cost Accountant and also holds

the qualification of MBA (Finance). He is a Fellow Member (FCMA) of the Institute of Cost

Accountants of India. Prior to his joining as Director (Finance) SECL and Chairman, CEWRL, he

has worked with Rastriya Ispat Nigam Limited (RINL) in various capacities.

He has rich and varied experience in financial management of the company. He has specialization in Foreign

Exchange Risk Management. He is a strategic planner with proven ability to improve operations, impact business

growth and maximize profits through achievement in Finance Management, Cost reductions, internal controls, and

productivity/efficiency improvement. He has vast experience of more than 24 years in Financial Domain. He is a keen

analyst and committed management functionary with exceptional relationship management and negotiation skills

with proven abilities in liasoning with Government Departments, regulatory authorities and external agencies

including Registrar of Companies (RoC), Banks, Financial Institutions, etc.

He was conferred with the ‘Most Influential CFOs of India’ Award by the Chartered Institute of Management

Accountants (CIMA), UK in 2016

.

In addition, Shri Panda also holds the charge of the Chairman of Chhattisgarh East Railway Limited, a subsidiary of

SECL and a sister concern of CEWRL.

Dr. Rama Shankar Jha

Director (Personnel), SECL

Dr. R. S. Jha (55 years), D(P), SECL joined as a Director on the Board of CEWRL on 08.11.2014.

Dr. Jha is a versatile human resource executive with hands-on-experience in diverse industries,

in all facets of personnel functions. He holds Degree in MA in Labour & Social Welfare

(Topper), LLB and Ph.D. He has contributed in various organisations in different capacities

which includes Bihar State Sugar Corporation, Hindustan Zinc Limited (Schedule-A CPSU),

Vedanta/Sterlite Group of Companies, NMDC (a Navaratna Company) in the States of Bihar,

Jharkhand, Orissa, Maharashtra and Chhattisgarh.

He joined Coal India Limited (CIL) on 21.06.2011 at Western Coalfields Limited (Headquarter), Nagpur as General

Manager (Personnel). Thereafter, he joined Mahanadi Coalfields Limited, Sambalpur, as General Manager

(Personnel/Administration) in December, 2011 where he headed departments like Manpower, Recruitment,

Executive Establishment, and Skill Development General Administration etc. He has also worked as CPIO/ Grievance

Officer of the Company. During his tenure, he has proved to be a strategic professional who displays participative

management style in fast-paced diverse work force. He has been instrumental in Manpower Rationalization, Skill

DIRECTORS’ PROFILE

10



Development initiatives and other challenging assignments of HR Department.

He has also attended Advanced Management Programme for General Managers of CIL at Indian Institute of

Management, Kolkata, Frankfurt School of Finance & Management, Germany and Stockholm School of Economics,

Sweden from 04.05.2014 to 21.05.2014.

He has been rewarded with ‘100 Most Influential Global HR Professional Award ’at the 24th World HRD Congress

held in Mumbai. He was also conferred with ‘Rajbhasha Kriti Samman’ by the Indian Official Language Development

Institute, Dehradun.

In addition, Dr. Jha also holds the charge of Director of Chhattisgarh East Railway Limited, a subsidiary of SECL and a

sister concern of CEWRL.

Shri Kuldip Prasad (w.e.f. 04.07.2016)

Director (Technical) Operations, SECL

Shri Kuldip Prasad, (57 years), D(T)O, SECL joined as a Director on the Board of CEWRL on

04.07.2016. Shri Prasad is a Mining Engineer (B.Tech. – Mining – 1st Class Certificate of Competency)

from India’s renowned Mining Institute i.e. Indian School of Mines, Dhanbad in the year 1982. Prior

to his joining as Director (Technical) Operations, SECL, he worked as Director Technical (Planning & Projects), SECL.

He started his career as a Junior Executive Trainee (Mining) in Central Coalfields Ltd., Ranchi in the year 1982. He

worked in different capacities at various Areas/Fields of Subsidiaries of CIL like CCL & SECL. Before assuming the

coveted post of Director Tech. (P&P), he was discharging his duties as General Manager of Dipika Area, second

biggest open cast coal producing Area of SECL having a production capacity of 31.00 Million Tonnes. He has the

experience of working with all kinds of mechanization in Underground and Opencast mines of SECL. Sri Prasad has

very rich and varied experience in the field of Mining Industry and has special focus on underground mechanization.

Sri Prasad is a great lover of Books, Cricket, Reading and Writing. Sri Prasad has attended Advance Management

Course held at China and presented various papers on different subjects on Mining Industry.

In addition, Shri Prasad also holds the charge of Director of Chhattisgarh East Railway Limited, a subsidiary of SECL

and a sister concern of CEWRL.

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Shri Sanjay Rastogi

Executive Director (SRP), IRCON

Sanjay Rastogi (55 years), ED (SRP), IRCON, being a subscriber to Memorandum of Association of the

company, took charge of Director, CEWRL on 25.03.2013. Shri Rastogi, a B.Tech. (Civil Engineering) is a

1983 batch officer of Indian Railways Service of Engineers (IRSE) cadre. During his 32 years of service,

he has executed important projects of Raipur-Vizianagaram Doubling, Aligarh-Ghaziabad third rail line Project, etc.

Besides working as Chief Track Engineer, Chief Track Machines Engineer, he has also worked in the field of Urban

Planning in RITES Ltd. He also has exposure in Bus Rapid Transit Systems in China and Indonesia. He is heading the

team executing the challenging Udhampur-Srinagar-Baramula rail line project.

In addition, Shri Rastogi also holds the charge of the Director of Chhattisgarh East Railway Limited, a subsidiary of


Shri Anil Kumar Gupta (w.e.f. 27.11.2015)

GM/ Public Private Partnership (PPP), IRCON

Shri Anil Kumar Gupta (51 years), General Manager/ Public Private Partnership (PPP), IRCON

joined as a Director on the Board of CEWRL on 27.11.2015. Shri Gupta, a Civil Engineer from BIT

(Sindri), is a 1987 batch officer of Indian Railways Service of Engineers (IRSE) cadre. He also holds

post-graduation degree in Public Policy and Management from IIM Bangalore in 2006 with

dissertation on “Public Private Partnerships in Financing Projects on Indian Railways”. He also completed Executive

Leadership Program in PPP from Bond University, Australia and a special course on PPP at IIM Ahmedabad in 2007.

He joined IRCON International Limited on 10.03.2015 as General Manager/ Public Private Partnership dealing with

new PPP Projects along with structuring of partnerships for creation of JV SPVs, identification of projects to be taken

up by SPVs, new business development involving investment projects and also heading the Working Group on Smart

Cities. During his 28 years of service, he worked as General Manager, Railway Infrastructure in Rail Land Development

Authority at New Delhi, where he was involved in drafting of its regulations, introducing PPP elements in the land

leasing projects, standardizing the processes and bid documents, designing partnerships with PSUs, developments

of Multi-Functional Complexes (MFCs) and Railway Stations, and redevelopment of staff colonies. In 2006, he was

appointed as the first Director in the PPP Cell created by Ministry of Railways, wherein he was involved in the creation

of framework for the present day PPP projects on Indian Railways especially in World Class Station and Elevated

Suburban Railway projects. He also worked in the first phase of Delhi Metro Project for 5 years (1998-2003), where he

was involved in evolving design criteria and designing of stations, EPC bid documents, tender finalization and

subsequently as Resident Engineer for implementing one such contract package MC1A for underground metro

section between Vishwavidyalaya to Kashmere Gate station. He has also worked with Eastern Railway and RDSO. He

has been instrumental in designing and handling EPC and PPP projects in railway sector.

12



He has authored 13 publications of which 6 are on PPP, Project Management and General Management, and

remaining technical papers. He also worked with the Working Group for development of Model RFQ and RFP for PPP

Projects for Govt of India. He is also a visiting faculty at NIFM Faridabad, IRITM Lucknow, IRICEN Pune and MDI

Gurgaon for Contract Management, Project Management and PPP. In 2009, Shri Gupta has been honoured with

Citation from RLDA Board for the successful conduct of the Symposium on Commercial Development of Railway

Land and has been awarded with Merit Certificate by Padmashree E. Sreedharan, MD/ DMRC in the year 2003 for his

outstanding contribution towards achievement of ISO 14001 for Construction of Vishwavidyalaya- Kashmere Gate

underground corridor.

In addition, Shri Gupta also holds the charge of Director of Jharkhand Central Railway Limited and Mahanadi Coal

Railway Limited and in addition also holds the charge of Director of Chhattisgarh East Railway Limited, a subsidiary of


13



Shri Sunil Kumar Mishra


Shri Sunil Mishra (50 years), MD, CSIDCL joined as a Director on the Board of CEWRL on 04.05.2013.

Shri Mishra a post graduate in Zoology is an Indian Forest Services (IFS) Officer of Chhattisgarh cadre.

During his tenure in Forest Department, he did excellent work on poverty alleviation in around 400

villages by implementing ‘Integrated Village Development Model’ which was adopted as role model by Indian

Forestry Congress, 2011.He has been awarded Green Guard Award in 2008 for work done in the field of water

conservation and eco-tourism in Barnavapara Sanctuary. In 2015, he attended a special course on Public Private

Partnership (PPP) at IIM, Ahmedabad.

Presently, he is holding the post of Managing Director, Chhattisgarh State Industrial Development Corporation

Limited (A Government of Chhattisgarh undertaking) which is involved in overall industrial development of

Chhattisgarh State by establishing and maintaining industrial areas and sector specific industrial parks for allotment

of land to industrial units, industrial promotion and to assist local small scale industries by providing raw material viz.

coal, iron and steel.

In addition, Shri Mishra also holds the charge of the Director of Chhattisgarh East Railway Limited, a subsidiary of


Shri Achal Khare (w.e.f. 10.06.2016)

Executive Director/Infra/Civil, Railway Board

Shri Achal Khare (55 years), Executive Director/Infra/Civil, Railway Board joined as a part-time

Director on the Board of CEWRL on 10.06.2016. Shri Khare is a Civil Engineer from the University

of Roorkee, now IIT/Roorkee, in the year 1981.

Shri Khare started professional career in Engineers India Ltd (EIL) and then joined Indian Railways as IRSE of 1982

batch. Initially, he was posted in Rail Coach Factory, Kapurthala as First Assistant Engineer of RCF during the peak

militancy period of 1986 to 1988. Thereafter, he served as Divisional Engineer/Senior Divisional Engineer, Allahabad

Division from 1988 to 1994. After serving as Head of Concrete Sleeper Plant at Allahabad, he was posted in

prestigious Udhampur-Srinagar-Baramullah Construction Project involving tall bridges and long tunnels, for 4 years

upto 2001. Thereafter, he served as Director/PSU and then Executive Director/ Track Procurement in Railway Board.

In 2005, joined IRCON on deputation and served in Brazil for about a year followed by posting as Country

Head/Malaysia for construction of US$ 1 billion electrified Railway project between Seremban to Gemas as part of

Kualalumpur-Singapore Line.On completion of 5 years deputation, returned to India in 2010 and posted as Divisional

Railway Manager/Chakradharpur Division of South Eastern Railway till August, 2012.

Presently, he is holding the post of Executive Director/Infra.(Civil) in Railway Board, wherein he is involved with PPP

policy and proposals.

14



Shri Ram Prabesh Thakur (up to 31.05.2016)

Former Director (Technical) Operations, SECL

Shri R.P. Thakur (60 years), D(T)O, SECL joined as a Director on the Board of CEWRL on 12.12.2013

relinquished the charge w.e.f. 31.05.2016 upon superannuation. Shri Thakur, a Mining Graduate

from Indian School of Mines, Dhanbad also holds PG Diploma in Computer Application from XISS,

Ranchi. He has completed his MBA in (Marketing & Finance) from BIT Mesra, Ranchi in the year

1990. He joined Central Coalfields Limited (CCL), a subsidiary of Coal India Limited as a JET (Mining) in the year 1977

and worked in different capacities in the fields and at the corporate level till last part of November, 2013, when he

was relieved of from CCL as Chief General Manger (Operations-Coordination) to take charge of DT(O),SECL. He has

rich and varied experience of over 38 years in the field of mining.

Shri Krishan Kumar Garg (up to 27.11.2015)

Former Director (Finance), IRCON

Shri K.K. Garg (60 years), former D(F) Ircon joined as a Director on the Board of CEWRL on

25.03.2013 relinquished the charge w.e.f. 27.11.2015 upon nomination of new incumbent by IRCON.

Shri Garg is a B.Com Graduate from Punjab University, Patiala, in 1976. He is a fellow member of the

Institute of Chartered Accountants of India (ICAI), and has over 34 years of rich experience in various

fields of finance.

He started his career as Accounts Officer in Punjab State Electricity Board in 1982. He has worked in various

capacities in NHPC Limited for eleven years. Thereafter, he joined Ircon International Limited as Addl. General

Manger (Finance) in December, 1997 on deputation from NHPC limited and rose to become Executive Director

(Finance) in February, 2006 and continued till May, 2007. During his tenure of nine years and six months in Ircon, he

was in-charge of Corporate Accounts, Corporate Taxation, Corporate MIS and Budgetary Control, Commercial due-

diligence and financial viability analysis for bidding of the projects on BOT/Annuity basis both in India and abroad,

preparation of financial model, sensitivity analysis and financial closure on award of work.

15



Shri Debaraj Panda (up to 17.09.2015)

Former Divisional Railway Manager, SECR

Shri Debaraj Panda (54 years), former DRM, SECR, Bilaspur joined as a part time Director on the Board

of CEWRL on 29.12.2014 relinquished the charge w.e.f 17.09.2015 upon nomination of new incumbent

by Ministry of Railways. Shri Panda, a Post Graduate in Economics from JNU is an IRTS officer of 1985

batch. Before his joining as DRM, SECR, Bilaspur division, he was worked as the DRM at Sambalpur Division of East

Coast Railway. He has also worked as the Sr. Deputy General Manager (SDGM) in East Coast Railways (ECoR).

Thereafter, he joined in IRCTC as Group General Manager (GGM) at Kolkata and then he worked as Chief Freight

Transportation Manager (CFTM) of ECoR. He has also taken training in Strategic Management organized for UIC at

HEC Paris and Johannesburg.

Shri Ravinder Goyal (up to 10.06.2016)

Divisional Railway Manager, SECR

Shri Ravinder Goyal (51 years), DRM, SECR, Bilaspur joined as a part time Director on the Board of

CEWRL on 17.09.2015 relinquished the charge w.e.f 10.06.2016 upon nomination of new incumbent by

Ministry of Railways. Shri Goyal, a Commerce Graduate also holds the qualification of MBA from University Business

School, Chandigarh, is an IRTS officer of 1987 Batch. Before joining as DRM, SECR, Bilaspur division, he worked as

CFTM/Western Railway at Mumbai. He has also worked in Western Railway, Central Railway and Eastern Railway with

deputations in Container Corporation of India & Indian Railway Catering and Tourism Corporation Limited.

DIRECTORS’ REPORT

Dear Members,

On behalf of the Board of Directors of your Company, it is my privilege and honour to present, the 3rd Annual

Report and Audited Statements of Accounts of your Company for the year ended 31st March, 2016, together

with Auditor’s Report thereon.

1.0 HIGHLIGHTS OF PERFORMANCE

The fiscal year 2015-16 has set the path for development of rail infrastructure for common good. The East-

West Rail Corridor project of the Company is spread in Bilaspur and Korba District of Chhattisgarh. The rail

alignment for the project has been crystallized. It was decided that about 35 Kms of Feeder lines to connect

Kartali, Ambica, Saraipali and Vijay West Mines of SECL shall be integrated with the East West Rail Corridor

along with connectivity to Kusmunda, Junadih and Dipka Sidings. The process of land acquisition of Private

and Govt. Land and diversion of forest land are at different stages.

The significant milestones achieved by your company during the year are briefly mentioned below:

1. The Detailed Project Report (DPR) of East-West Rail Corridor Project from Gevra Road to Pendra R o a d v i a

Dipka, Katghora, Sindurgarh, Pasan, approximately 135.30 km in length with connectivity to Kusmunda,

Junadih and Dipka Sidings along with a provision to construct and integrate with the East West Rail Corridor

for about 35 Kms of Feeder lines to connect Kartali, Ambica, Saraipali and Vijay West Mines of SECL prepared

and submitted by IRCON and duly independently financially appraised by M/s CARE Kalypto Risk

Technologies & Advisory Services Pvt. Ltd., Mumbai has been approved at a total Project Cost of ̀ 5,543.37

Crores.

2. The Award for transfer of Private land in Bilaspur District has been issued and your Company has deposited a

sum of ̀ 29.14 Crores for payment as land compensation to the land losers. 20E notification for 45 out of 52

villages has been published and preparation of award is under process. The process of acquisition of balance

land is also in advanced stage. The process of obtaining No Objection Certificate (NoC) for construction of

Rail Corridor on land owned by South East Central Railway and South Eastern Coalfields Limited are being

obtained.

3. No objection certificate for transfer of Govt. Land in Bilaspur District has been obtained. While NoC for

transfer of Govt Land for 27 villages in Korba Dist. has been obtained, the same is under process for the

remaining 11 villages.

4. The proposal for diversion of forest land for construction has already been submitted and is under process.

The preparation of ‘wild life conservation plan’ has been entrusted to TFRI, Jabalpur.

5. In anticipation of acquisition of land for the project, tender for construction of a part of the corridor has

already been issued.

6. Detailed survey and requirement of land for feeder lines is being worked out.

16



2.0 ORGANIZATION

The Company being a joint venture company of South Eastern Coalfields Limited, Ircon I n t e r n a t i o n a l

Limited and Government of Chhattisgarh (represented by CSIDC) was incorporated for developing the rail

network and to facilitate coal traffic movement from mainly from enhanced production from Gevra, Dipka

and Kusmunda Mines of SECL via alternate route from Gevra Road to Pendra Road in Northern Region of

Chhattisgarh to meet the logistic challenges foreseen on account of coal evacuation and to meet the

growing coal needs of the country. Ministry of Railways (Government of India) had notified the East-West

Rail Corridor in the State of Chhattisgarh as a ‘Special Railway Project’ to provide national infrastructure for

a public purpose and directed for acquisition of land under The Railways Act, 1989.

3.0 ROLE OF PROMOTER COMPANIES

The proposed joint venture creates synergy by addressing the requirements of the partners with a na t iona l

cause in mind. As per the MOU dated 03.11.2012, JV partners have agreed to conduct feasibility study and

establish bankability of the project apart from extending necessary financial support in the desired form of

equity /debt etc. by forming a company, where, GoCG’s share of equity shall correspond to the value of land

provided by the State Government. The company (CEWRL) has been formed by equity contribution from

SECL, IRCON and GoCG. The role of promoters is to bring the necessity of rail infrastructure and its

establishment to a common platform so that the desired objective can be achieved by an association for a

limited period. While discharging the promoters’ role, SECL looks for eco-friendly coal evacuation process

through Rail, IRCON shares the technical expertise to move on the Rail and GoCG provides the space to lay

the Rail. In order to initiate the process, a Project Execution Agreement was signed on 05.04.2014 by CEWRL

with IRCON, having domain expertise on execution of railway projects to act as a Project Management

Consultant for undertaking the construction work of the proposed rail project from (Gevra Road-Dipka-

Pendra Road) to be completed within three and half years. CEWRL shall enter into separate agreements with

Ministry of Railways for Concession, Operation & Maintenance of assets.

3.1 DETAILED PROJECT REPORT

The Detailed Project Report (DPR) for construction of New BG Electrified Double Line over SECR- East-West

Corridor: Gevra Road to Pendra Road via Dipka, Katghora, Sindurgarh, Pasan, approximately 135.30 km in

length with connectivity to Kusmunda, Junadih and Dipka Sidings along with a provision to construct and

integrate with the East West Rail Corridor for about 35 Kms of Feeder lines to connect Kartali, Ambica,

Saraipali and Vijay West Mines of SECL has been approved South East Central Railway (SECR). The project is

expected to be completed as per the specified timeline and the cost of construction has been worked out at

` 4,298.32 Crores at current prices. The total Project Cost has been worked at `5,543.37 Crores including a

factor for inflation and interest during construction.

Your Company had appointed M/s CARE Kalypto Risk Technologies and Advisory Services Private Limited as

Financial Appraiser for the project and it had submitted its Independent Financial Appraisal Report on

March, 2016 which included evaluation and assessing the financial viability of the project taking into

consideration the risk factors with mitigation mechanism and conducting the sensitivity analysis. The Debt-

Equity ratio has been suggested at 80:20 taking into consideration the total project cost of ̀ 5,543.37 Crores

in the Financial Appraisal Report.

17



ParticularsFor The Year Ended

31-03-2016 (`)

For The Year Ended

31-03-2015 (`)

Profit/Loss for the year (17,50,181.00) (4,04,397.00)

Profit/Loss brought forward from previous

year(5,86,147.00) (13,45,783.70)

(23,36,328.00) (17,50,180.70)Balance Carried to balance Sheet

4.1 CAPITAL STRUCTURE

During the year under review, there was no change in the Authorised Capital of the Company which stood at

` 5.00 Crores. The equity shareholding pattern of the promoters companies are as follows:

Name of the Company Shareholding Pattern Shareholding Pattern As on 31-03-2016 As 0n 31-03-2015

South Eastern Coalfields Limited 71.02% 71.02%

IRCON International Limited 28.85% 28.85%

CSIDC(representing Government of Chhattisgarh) 0.13% 0.13%

Total 100% 100%

4.2 FINANCIAL RESULTS

The Financial Results for the Financial Year 2015-16 as compared to the previous year are given below:

18



4.3 CAPITAL EXPENDITURE

I. During the year under report, investment to the tune of ̀ 85,177.00 was made in the procurement of office

furniture, computers etc.

II. Further, investment to the tune of ̀ 40,91,40,222.00 was made as capital expenditure towards execution of

the project.

5.0 DIVIDEND

Since, the project of the Company is in implementation stage, no dividend is declared during the year under

review.

Name of the

Company

Balance as on

01.04.2015

Loan availed

during the

year

Repayment of Loan

during the year

Balance of Loan as

on 31.03.2016

SECL

IRCON

CSIDC

Total

NIL

NIL

NIL

NIL

48.00

19.50

7.50

75.00

NIL

NIL

NIL

NIL

48.00

19.50

7.50

75.00

6.0 Material changes and commitments, if any, affecting the financial position of the company which have

occurred between the end of the financial year to which the financial statements relate and the date of

the report

No material changes and commitments affecting the financial position of the company occurred b e t w e e n

the end of the financial year to which the financial statements relate and the date of this report.

7.0 CONTRIBUTION TO THE EXCHEQUER

The Company has contributed to the Exchequer a total of ̀ 10,79,231.00 during the financial year 2015 -16

in the form of Corporate Advance Tax.

8.0 LOAN FUND

Your company has agreed to borrow ̀ 150 crores in the form of subordinate debt from the joint v e n t u r e

partners in proportion to their shareholding pattern pending finalization of the funding pattern and

resources for the project. The subordinate debt has infused the pace to the project by allowing time to gear

up for arranging funds in the form of equity/debt without compromising with the timeline for execution of

the project. During the Year under Review, the Company has entered into the Loan Agreement with SECL,

IRCON and CSIDCL for obtaining the loan amounting to ` 96.00 Crores, ` 39.00 Crores and ` 15.00 Crores

respectively.

Unsecured Loan (` in Crores)

9.0 DEPOSITS

The company has neither accepted nor renewed any deposits during the year under review.

10.1 STATUS OF LAND ACQUISITION

I. Private Land:

The Award for transfer of Private land in Bilaspur District has been issued and your Company has deposited a

sum of ̀ 29.14 Crores for payment as land compensation to the land losers. 20E notification for 45 out of 52

villages has been published and preparation of award is under process. The process of acquisition of balance

land is also in advanced stage. The process of obtaining No Objection Certificate (NoC) for construction of

Rail Corridor on land owned by South East Central Railway and South Eastern Coalfields Limited are being

obtained.

19



II. Government Land:

No objection certificate for transfer of Govt. Land in Bilaspur District has been obtained. While NoC for

transfer of Govt Land for 27 villages in Korba Dist. has been obtained, the same is under process for the

remaining 11 villages.

III. Forest Land:

The proposal for diversion of forest land for construction has already been submitted and is under process.

The preparation of ‘wild life conservation plan’ has been entrusted to TFRI, Jabalpur.

IV. Land for Feeder Lines:

The Survey, Verification, Notification and related activities for acquisition of land for Feeder Lines is under

progress.

11.0 MANAGEMENT TEAM

The Management team of the company is functioning with the deputed manpower from SECL and I R C O N

are as follows:

12.0 INFORMATION TO SHAREHOLDERS

Annual Accounts of Chhattisgarh East-West Railway Limited (CEWRL) and the related detailed information

shall be available to the shareholders of the holding company and CEWRL. Any shareholder seeking any such

information at any point of time, can inspect the same during business hours in a working day at the

registered office of the company at Mahadev Ghat Road, Raipura Chowk, Raipur, Chhattisgarh.

20



Sl. No. Name Designation On Deputation From

1

2

3

4

5

Shri A.S. Babu

Shri Rajnesssh Narain

Shri Rajesh Khare

Shri Narendra Bondre

Shri Anup Agarwal

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Chief Operating Officer (COO)

Deputy Manager (Civil)

Assistant Manager (Finance)

SECL

SECL

IRCON

IRCON

SECL

13.0 AUDITORS

Under Section 139 of the Companies Act 2013, the following audit firm was appointed as the Statutory

Auditor of the Company for the financial year 2015-16, i.e. from 01.04.2015 to 31.03.2016:

M/s. A D B & Company,

Chartered Accountants

Firm Registration No. 007747C

First Floor, Mahavir Gaushala Complex,

K.K. Road, Moudhapara,

Raipur (Chhattisgarh)

14.0 INFORMATION UNDER SECTION 134(3)(q), SECTION 143(3)(i) OF THE COMPANIES ACT, 2013, READ

WITH RULE 8(5)(viii) OF COMPANIES (ACCOUNTS) RULES, 2014 REGARDING ADEQUACY OF INTERNAL

FINANCIAL CONTROLS

The company has Internal Control systems and procedures commensurate with its size and nature of

business with an approved and well laid down delegation of authority at various levels for ensuring

appropriate authorization and approval of transactions.

Policy in the form of Purchase Manual, Contract Management Manual, Civil Engineering Works Manual,

defining the practices & procedures to be adopted for procurement and award of contracts, as prescribed by

the SECL (Holding Company) and IRCON are followed.

15.0 BOARD OF DIRECTORS

The Board of Directors of CEWRL consists of 7 (seven) Directors, viz., Chairman and 2 (two) Directors as

nominee of SECL, 2 (two) Directors as nominee of IRCON, 1 (one) Director as nominee of CSIDCL and 1 (one)

Director as nominee of Ministry of Railways (MOR).

15.1 The Composition of Board of Directors as at 31.03.2016 is as under:

21



Sl. No. Name DesignationDate of

Appointment

1

2

3

4

5

6

7

Shri A.P. Panda, D (F), SECL

Shri R.P. Thakur, D (T) O, SECL

Dr. R.S. Jha, D (P), SECL

Shri Sanjay Rastogi, ED (IRCON)

Shri A.K. Gupta, GM, PPP (IRCON)

Shri Sunil Mishra, MD (CSIDCL)

Shri Ravinder Goyal, DRM (SECR)

Chairman

Director

Director

Director

Director

Director

Director

10.08.2013

12.12.2013

08.11.2014

25.03.2013

27.11.2015

04.05.2013

17.09.2015

15.2 The following persons were appointed as Director during the year under report:

Sl. No. Name Designation Date of Appointment

1

2

Shri Ravinder Goyal, DRM (SECR)

Shri A.K. Gupta, GM, PPP (IRCON)

Director

Director

17.09.2015

27.11.2015

15.3 The following persons ceased to be Director during the year under report :

Sl. No. Name Designation Date of Cessation

1

2

Shri Debaraj Panda Former DRM (SECR)

Shri K.K. Garg Former D(F), IRCON

Director

Director

17.09.2015

27.11.2015

Remarks

Upon

Transfer

Upon

Nomination

22



16.0 KEY MANAGERIAL PERSONNEL

16.1 The following persons were appointed as Key Managerial Personnel (KMP) during the year under

report:

Sl. No. Name Designation Date of Appointment

1 Shri A.S. Babu, Babu, GM (Mining), SECL Chief Executive Officer 11.05.2015

The Company at its 20th Board Meeting held on 21.04.2016 appointed Shri Anup Agarwal as Chief

Financial Officer (Whole-time Key Managerial Personnel).

Sl. No. Name Designation Date of Cessation

1Shri Biswajit Choudhury

(Mining/Vigilance)SECLChief Executive Officer 07.05.2015

Remarks

Upon

Transfer

16.2 The following persons ceased to be Key Managerial Personnel during the year under report

17.0 BOARD MEETINGS

Seven (7) Board Meetings were held during the Financial Year 2015–16. The maximum time gap

between two meetings was not more than 120 days. The details of Board meetings held during the

period is given as under:

Meeting No. Date of Meeting Time

Thirteenth

Fourteenth

Fifteenth

Sixteenth

Seventeenth

Eighteenth

Nineteenth

Venue of Meeting

06-05-2015

12-06-2015

17-07-2015

16-09-2015

16-10-2015

13-01-2016

04-03-2016

Raipur

Raipur

Bilaspur

Raipur

Bilaspur

Raipur

Bilaspur

01:30 P.M.

02:30 P.M.

03:00 P.M.

12:30 P.M.

11:30 A.M.

12:30 P.M.

04:00 P.M.

23



18.0 APPOINTMENT OF INDEPENDENT DIRECTORS

The appointment of 2 (two) Independent Directors pursuant to section 149(4) of the Companies Act, 2013

read with Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014 could not take

place during the year under review. The Company has requested for appointment of 2 (two) Independent

Directors to Ministry of Coal, Government of India vide its letter No. CEWRL/RPR/CHAIRMAN/BOARD/15-

16/11 dated 04/05.02.2016.

19.0 STATUTORY DISCLOSURE BY DIRECTORS

None of the Directors of your company is disqualified as per provisions of Section 164 of the Companies Act,

2013. Your Directors have made necessary disclosures as required under various provisions of the

Companies Act, 2013.

Sl. No. Bank Name Branch Address

1State Bank of

IndiaSundarnagar Branch, Raipur-492013, Chhattishgarh

Axis Bank2Tagore Nagar Branch, Pachpedi Naka, Pujari Chambers, Block B1, NH 43, Raipur-492001, Chhattishgarh

20.0 BANKER’S NAME AND ADDRESS

21.0 DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, Directors of your Company hereby state and confirm

that:

I) in the preparation of the annual accounts for the year ended 31st March, 2016, the applicable accounting

standards have been followed along with proper explanation relating to material departures;

II) the Directors had selected such accounting policies and applied them consistently and made judgments and

estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the

Company at the end of the financial year and of the profit or loss of the Company for the year under review.

III) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in

accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and

for preventing and detecting fraud and other irregularities.

IV) the Directors have prepared the Annual Accounts for the year ended 31st March, 2016 on a ‘Going Concern’

basis.

V) the Director had devised proper systems to ensure compliance with the provisions of all applicable laws and

that such systems were adequate and operating efficiently.

22.0 AUDIT OBSERVATIONS

There are no Auditors’ observations for the FY 2015-16.

23.0 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND

OUTGO

The information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read

with Rule 8 (3) of the Companies (Accounts) Rules, 2014 regarding Conservation of Energy, Technology

absorption and Foreign Exchange earnings and Outgo is given in Annexure-I to this Report.

24.0 PARTICULARS OF EMPLOYEES AS PER SECTION 197 (12) OF THE COMPANIES ACT, 2013

No employee of the Company were in receipt of remuneration in excess of the limits laid down under

Section 197(12) of the Companies Act, 2013, read with Rule 5 of the Companies (Appointment &

Remuneration of Managerial Personnel) Rules, 2014.

24



25.0 RELATED PARTY TRANSACTIONS

Related party transactions that were entered during the financial year were on an arm’s length basis and

were in the ordinary course of business. There were no materially significant related party transactions with

the Company’s Promoters, Directors, Management or their relatives, which could have had a potential

conflict with the interests of the Company. Transactions with related parties entered by the Company in the

normal course of business are periodically placed before Board for its omnibus approval and the particulars

of contracts entered during the year as per Form AOC-2 is enclosed as Annexure-II, to this Report.

26.0 FORM NO. MGT.9 EXTRACT OF ANNUAL RETURN

The extract of Annual Return of the Company in Form No. MGT-9 for the year under report pursuant to

Section 134(3) of the Companies Act, 2013 is is given in Annexure-III.

27.0 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

During the year under review, the Company had not granted any loans, extended any guarantees or made

investments.

28.0 AUDITORS’ REPORT

The Auditors report on the accounts of the Company for the year ended 31st March, 2016 is placed in

Annexure-IV forming part of the Report.

29.0 ACKNOWLEDGEMENTS

Your Directors acknowledge with deep sense of appreciation for the co-operation, valuable assistance,

support and guidance received from the Ministry of Coal, Ministry of Railways, various departments of

Government of Chhattisgarh, Coal India Limited, South Eastern Coalfields Limited, IRCON International

Limited and Chhattisgarh State Industrial Development Corporation Limited for the progress of the

Company. Your Directors also express their sincere thanks to the local administration of Raipur, Korba and

Bilaspur for their help and cooperation from time to time for the development of the Company.

Your Directors also acknowledge the constructive suggestions received from the Statutory Auditors and

Comptroller & Auditor General of India (CAG) and are grateful for their continued support and co-operation.

Your Directors express their deep felt thanks and best wishes to all the shareholders for the continued

support and trust they have reposed on the Management. Your Directors would like to place on record their

appreciation for the untiring efforts and contributions made by the employees and associates at all levels

that have made the continued progress and growth easier for the Company.

25



30.0 ADDENDA

The following documents are annexed:

30.1 In pursuance to the provisions of Section 134 (3) (m) of the Companies Act, 2013, read with Rule 8 (3) of the

Companies (Accounts) Rules, 2014, Information in regard to the Conservation of Energy, Technology

Absorption and Foreign Exchange Earning& Outgo is given in Annexure-I to this report.

30.2 In pursuance to the provisions of Section 188 (1) (m) of the Companies Act, 2013 read with Rule 8 (3) of the

Companies (Accounts) Rules, 2014, Information relating to Contracts or Arrangements with related parties is

given in Annexure-II to this Report.

30.3 The extract of Annual Return of the Company in Form No. MGT-9 for the year ended 31.03.2016 under

Section 134(3) of the Companies Act, 2013 is given in Annexure-III.

30.4 Report of the Statutory Auditor appointed under Section 139 (5) of the Companies Act, 2013 is given in

Annexure-IV to this report.

For and on behalf of the Board of Directors of

Chhattisgarh East-West Railway Limited

Sd/-

(A.P. Panda)

Chairman

DIN: 06664375

26



Date: 21.04.2016 Place: Raipur

ANNEXURE I

Information on conservation of Energy, Technology absorption, Foreign Exchange earnings and outgo

required to be disclosed under Section 134 of the Companies Act, 2013 read with Companies (Accounts)

Rules, 2014 are provided hereunder:

(A) CONSERVATION OF ENERGY

a) The steps taken or impact of conservation of energy:

Not Applicable, since the Company has not commenced its commercial operations.

b) The steps taken by the company for utilizing alternate source of energy:

Not Applicable

c) The capital investments on energy conservation equipment:

The Company has installed power saver devices in the Office building.

(B) TECHNOLOGY ABSORPTION

(a) The efforts made towards technology absorption:


(b) The benefits derived like product improvement, cost Reduction, product development or

import substitution:


(c) In case of imported technology (imported during the last three years reckoned from the

beginning of the financial year)

(a) The details of technology imported : Nil

(b) The year of import : Nil

(c) Whether the technology been fully absorbed; : Nil

(d) If not fully absorbed, areas where absorption has : Nil

not taken place, and the reasons thereof; and

(e) The expenditure incurred on Research and development : Nil

Expenditure on R&D (` In lakhs)

27



Sl. No. Particulars

1

2

3

4

Capital

Recurring

Total

Total R&D Expenditure as a percentage of total turnover

2015-16 2014-15

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

(C) Foreign Exchange Earnings and Outgo:

The Foreign Exchange outgo and foreign exchange earned by the Company during the year is Nil.

FORM NO. AOC-2 (Pursuant to clause (h) of sub-section (3) of section 134 of the Act and

Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related

parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s

length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm's length basis.

Name(s) of the related party and nature of relationship

Nature of the contract/arrangements/transactions

Duration of the contract/arrangements/transactions

Salient terms of the contracts or arrangements or transaction including the value, if any

Justification for entering into such contracts or arrangements or transactions

Dates (s) of approval by the board

Amount paid as advances, if any:

Date on which the special resolution was passed in general meeting as required under first proviso to section 188

a

b

c

d

e

f

g

h

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

2. Details of material contracts or arrangement or transactions at arm's length basis

a) Name(s) of the related party and nature of relationship:

i. South Eastern Coalfields Limited (Subsidiary Company of Chhattisgarh East-West

Railway Limited)

ii. IRCON International Limited (Associate Company of Chhattisgarh East-West Railway

Limited)

b) Nature of contracts/arrangements/transactions:

The Company has entered into a Term Loan Agreement with SECL, IRCON and CSIDCL.

ANNEXURE II

28



c) Duration of the contracts/arrangements/transactions:

The repayment period of loan shall be of five (05) years, excluding the time involved for the Construction of

the project i.e., Moratorium Period not exceeding five years from the date of the loan agreement.

d) Salient terms of the contracts or arrangements or transactions including the value, if any:

The Company has entered into the Term Loan Agreement with SECL, IRCON and CSIDCL on 21.01.2015,

05.01.2016 and 18.12.2015 for obtaining loan amounting loan amounting to `96.00 Crores, ` 39.00 Crores

and ̀ 15.00 at an interest rate of 12% per annum with compounding interest at quarterly rests.

e) Justification for entering into such contracts or arrangements or transactions:

In accordance with the provisions of Section 184 read with Rule 12 of the Companies (Meeting of the Board

and its Powers) Rules, 2014 with regard to disclosure of interest by a director has been complied by all the

directors. After the approval of the Board at its 9th Meeting, the Shareholders of the Company at is Third

Extra Ordinary General Meeting held on 27.09.2014 by way of a special resolution approved for arrangement

of funds from the promoter companies in the ratio of their shareholding proportion for an amount not

exceeding `150.00 Crores in light of Rule 15 (2) of the Companies (Meeting of the Board and its Powers)

rules, 2014.

f) Date(s) of approval by the Board:

CEWRL Board at its 9th Meeting held on 27.09.2014 approved for arrangement of funds for an amount not

exceeding ̀ 150.00 Crores from SECL, IRCON and CSIDC in the ratio of their shareholding proportion of 64%,

26% and 10% respectively.

g) Amount paid as advances, if any: Nil

h) Date on which the special resolution was passed in general meeting as required under first proviso to

section 188: N/A.

For and on behalf of the Board of Directors

Sd/-

(A.P. Panda)

Date: 21.04.2016 Chairman

Place: Raipur DIN: 06664375

29



FORM NO. MGT.9EXTRACT OF ANNUAL RETURN

as on the financial year ended on 31.03.2016

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies

(Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i) CIN : U45203CT2013GOI000768

ii) Registration Date : 25.03.2013

iii) Name of the Company : CHHATTISGARH EAST-WEST RAILWAY LIMITED

iv) Category / Sub-Category

of the Company : Company having Share Capital

v) Address of the Registered

office and contact details : 2ND FLOOR, CSIDC COMMERCIAL COMPLEX, RAIPURA

CHOWK RAIPUR-492013,CHHATTISGARH

E-mail id: [email protected]

Phone: 0771-2242155, Fax: 0771-2242154

vi) Whether listed company : No

vii) Name, Address and Contact

details of Registrar and : Not Applicable

Transfer Agent, if any

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company

shall be stated:-

ANNEXURE III

SL.No.

1

Name and Description ofMain Product/Services

NIC Code of the Product/Service

Totalturnover of the

Comapny

Nil NilNil

30



SL.No.

1

Name and Address of the company

CIN ApplicableSection

U10102CT1985GOI003161 NilSouth Eastern Coalfields Limited

III. PARTICULAR OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Holding/Subsidiary/Associate

HoldingCompany

% of Shares Held

71.02

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

I) Category-wise Share Holding

Category of Shareholders

No. of Shares held at the end of the year

No. of Shares held at the beginning of the year

Demat Demat Physical Physical Total Total % of Total

Shares

% of Total

Shares

A.Promoters

(1) Indian

a) Individual/ HUF

b) Central Govt

c) State Govt (s)

d) Bodies Corp.

e) Banks/FI

f) Any Other

Sub-total (A) (1) :-

(2) Foreign

a) NRIs - Individuals

b) Other - Individuals

c) Bodies Corp.

d) Banks / FI

e) Any Other....

Sub-total (A) (2):-

% Change during

the year

NilNil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

40,55,000 40,55,000 40,55,00040,55,000Nil100 100 Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil Nil Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil NilNil

Nil

Nil

40,55,000 40,55,000 40,55,00040,55,000Nil100 100 Nil

Nil Nil Nil Nil Nil Nil Nil Nil






31



Category of Shareholders

No. of Shares held at the end of the year

No. of Shares held at the beginning of the year

Demat Demat Physical Physical Total Total % of Total

Shares

% of Total

Shares

B. Public Shareholding

1. Institutions

a) Mutual Funds

b) Banks/FI

c) Central Govt

d) State Govt(s)

e) Venture Capital Funds

f) Insurance Companies

g) FIIs

h) Foreign Venture Capital Funds

i) Others (specify)

Sub-total (B)(1):-

2. Non-Institutions

a) Bodies Corp.

I) Indian

ii) Overseas

b) Individuals

i) Individual shareholders holding

nominal share capital up to `1 lakh

ii) Individual shareholders

holding nominal share capital

in excess of `1 lakh

c) Others (specify)

Sub-total (B)(2):-

Total Public Shareholding

(B) = (B)(1) + (B)(2)

C. Shares held by Custodian for

GDRs & ADRs

Grand Total (A+B+C)

% Change during

the year

Nil Nil Nil Nil Nil Nil Nil Nil Nil



















Nil 40,55,000 100 Nil 100 Nil40,55,000 40,55,000 40,55,000

32



Shareholder's NameCumulative Shareholding

during the yearShareholding at the

beginning of the year

No. of Shares

At the beginning of the year 40,55,000 100 40,55,000 100

Date wise Increase/ Decrease in Promoters Shareholding during the year specifying the Nil Nil Nil Nilreasons for increase/decrease (e.g.allotment/transfer/bonus/ sweat equity etc):

At the End of the year 40,55,000 100 40,55,000 100

Sl.No.

% of total Shares of the

company

No. of Shares

% of total Shares of

the company

1

2

3

(iii) Change in Promoters' Shareholding (please specify, if there is no change)

Shareholder's Name

Shareholding at the end of the year

Shareholding at the beginning of the year

No. of Shares

%of Shares Pledged/

encumbered to totalshares

South Eastern Coalfields Limited

IRCON International Limited

CSIDCL

Sl.No.


company

% change in share holding

during the year

No. of Shares

%of Shares Pledged/

encumbered to total shares


company

(ii) Shareholding of Promoters

1

2

3

28,80,000

11,70,000

5,000

71.02

28.85

0.13

Nil

Nil

Nil

28,80,000

11,70,000

5,000

71.02

28.85

0.13

Nil

Nil

Nil

33



Nil

Nil

Nil




No. of Shares

At the beginning of the year Nil Nil Nil Nil

Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease Nil Nil Nil Nil(e.g. allotment/ transfer/ bonus/sweat equity etc):

At the End of the year (or on the date of separation, if separated during the year) Nil Nil Nil Nil

Sl.No.


company

No. of Shares

% of total Shares of

the company

1

2

3

For Each of the Top 10 Shareholders

(iv) Shareholding Pattern of top ten Shareholders

(other than Directors, Promoters and Holders of GDRs & ADRs):

(v) Shareholding of Directors and Key Managerial Personnel:




For Each of the TOP Shareholders No. of % of total No. of % of total Shares shares of shares shares of the company the compnay

For Each of the Directors and KMP Nil Nil Nil Nil

At the Beginning of the year Nil Nil Nil Nil

Date wise Increase / Decrease in share holding during Nil Nil Nil Nil

Sl.No.

1

2

3Specifying the reasons for increase / Decrease (e.g.allotment / transfer / bonus / sweat equity etc:

At the End of the year Nil Nil Nil Nil

34



4

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment

Indebtedness at the beginning of the financial year i) Principal Amount Nil Nil Nil Nilii) Interest due but not paid Nil Nil Nil Niliii) Interest accrued but not due Nil Nil Nil Nil

Total (i+ii+iii) Nil Nil Nil Nil

Change in Indebtedness during the financial year• Addition Nil 75,00,00,000.00 Nil 75,00,00,000.00• Reduction Nil Nil Nil Nil

Net Change Nil 75,00,00,000.00 Nil 75,00,00,000.00

Indebtedness at the end of the financial yearI) Principal Amount Nil 75,00,00,000.00 Nil 75,00,00,000.00ii) Interest due but not paid Nil Nil Nil Niliii) Interest accrued but not due Nil 2,36,92,642.00 Nil 2,36,92,642.00

Total (i+ii+iii) Nil 77,36,92,642.00 Nil 77,36,92,642.00

Secured Loans

excludingdeposits

Unsecured Loans

Deposits TotalIndebtedness

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Name of MD/WTD/ Manager

1. Gross salary (a) Salary as per provisions contained in section 17(1) Nil Nil Nil Nil Nil of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 Nil Nil Nil Nil Nil (c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 Nil Nil Nil Nil Nil

2. Stock Option Nil Nil Nil Nil Nil

3. Sweat Equity Nil Nil Nil Nil Nil

4. Commission- as % of profit Nil Nil Nil Nil Nil

- others, specify... Nil Nil Nil Nil Nil

5. Others, please specify Nil Nil Nil Nil Nil

Total (A) Nil Nil Nil Nil Nil

Ceiling as per the Act

Total Amount

Particulars of RemunerationSl.No.

35



B. Remuneration to other directors:

Name of Directors

1 Independent Directors Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil• Fee for attending board committee meetings Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil• Commission Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil• Others, please specify Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total (1) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Other Non-Executive Directors

• Fee for attending board committee meetings Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil• Commission Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil• Others, please specify Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total (2) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total (B) = (1 + 2) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total Managerial Remuneration Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Overall Ceiling as per the Act Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total Amount

Particulars of RemunerationS.No.

Shri A.P.

Panda

Shri R.P.

Thakur

Dr. R.S. Jha

Shri SanjayRastogi

Shri Sunil

Mishra

Shri Ravinder

Goyal

Shri K.K. Garg

Shri DebarajPanda

Shri A.K.

Gupta

C. Remuneration To Key Managerial Personnel Other Than Managing Director/Manager/Whole Time

DirectorSl.No.

Particulars of Remuneration

Shri Biswajit Choudhury

(Former CEO)1-4-15 to 7-5-15

Key Managerial Personnel

1. Gross salary

(a) Salary as per provisions contained in

section 17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax

Act, 1961

(c) Profits in lieu of salary under section

17(3) Income-tax Act, 1961

2. Stock Option

3. Sweat Equity

4. Commission

- as % of profit

- others, specify

5. Others, please specify

Total

Shri A.S. Babu (CEO)

7-5-15 to 31-3-16 Total

Shri Rajneesh Narain (CFO)

1,61,270.00 9,09,130.50 7,76,743.70 18,47,144.20

33,215.00 1,66,075.00 1,56,483.60 3,55,773.60

1,94,485.00 10,75,205.50 9,33,227.30 22,02,917.80

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

36



Type

A. COMPANY

Section of the Companies Act

Brief Description

Details of Penalty/Punishment/Compounding fees imposed

Authority [RD/NCLT/

COURT]

Appeal made, if any

(give Details)

Penalty

Punishment

Compounding

B. DIRECTORS

Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Vii. Penalties/punishment/compounding of Offences:

37



38



39



INDEPENDENT AUDITOR’S REPORT To,

The Members,

CHHATTISGARH EAST-WEST RAILWAY LIMITED,

RAIPUR- 492013 (C.G.)

REPORT ON THE FINANCIAL STATEMENTS:

We have audited the accompanying financial statements of CHHATTISGARH EAST-WEST RAILWAY

LIMITED (“the Company), which comprise the Balance Sheet as at 31st MARCH, 2016, the Statement of Profit

& Loss and cash flow statement for the year then ended, and a summary of significant accounting policies

and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS:

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies

Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair

view of the financial position, financial performance and Cash Flows of the Company in accordance with the

accounting principles generally accepted in India, including the Accounting Standards specified under

Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also

includes the maintenance of adequate accounting records in accordance with the provision of the Act for

safeguarding of the assets of the Company and for preventing and detecting the frauds and other

irregularities; selection and application of appropriate accounting policies; making judgments and estimates

that are reasonable and prudent; and design, implementation and maintenance of adequate internal

financial control, that were operating effectively for ensuring the accuracy and completeness of the

accounting records, relevant to the preparation and presentation of the financial statements that give a

true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY:

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters

which are required to be included in the audit report under the provisions of the Act and the Rules made

thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of

the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit

to obtain reasonable assurance about whether the financial statements are free from material misstatement.

ANNEXURE IV

40



An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgment, including the assessment

of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal financial control relevant to the Company’s

preparation of the financial statements that give true and fair view, in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the

Company has in place an adequate internal financial controls system over financial reporting and operating

effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of the accounting estimates made by Company’s Directors, as well as

evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion on the financial statements.

Opinion:

In our opinion and to best of our information and according to the explanations given to us, the said

financial statements give the information required by the Act in the manner so required and give a true and

fair view in the conformity with the accounting principles generally accepted in India, of the state of affairs of

the company as at 31st March, 2016, its loss and its cash flows for the year ended on that date.

Emphasis of Matters :-

Without qualifying our opinion we draw attention to:

Note-3 and 4 to the financial statements which indicates “Long term Borrowings” and

“Expenditure incurred on behalf of the Company” with IRCON International Limited, which is

subject to confirmation and reconciliation.

Report on other legal and regulatory requirements :

1. As required by the Companies (Auditor's Report) Order 2016 (“the order”), issued by the Central

Government of India in terms of sub-section (11) of section 143 of the Act, we give in the ‘Annexure A’, a

statement on the matters specified in the paragraphs 3 and 4 of the order, to the extent applicable.

2. As required by Section 143(5) of the Companies Act, 2013, the Comptroller and Auditor General of India

issued directions and sub-directions. We give our comments thereon, in the ‘Annexure-B’.

3. As required by section 143(3) of the Act, we report that:

41



a) We have obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as

appears from our examination of those books;

c) The Balance Sheet, the Profit & Loss Account and Cash flow Statement dealt with by this report are

in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified

under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors, as at 31st March, 2016 and taken

on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from

being appointed as directors in terms of Section 164(2) of the Act.

f) With respect to other matters to be included in the Auditor’s Report in accordance with Rule 11 of

the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information

and according to the explanations given to us :

1. The Company does not have any pending litigations which would impact its financial position.

2. The Company did not have any long-term contracts including derivative contracts for which there

were any material foreseeable losses.

3. There were no amounts which required to be transferred by the Company to the Investor Education

and Protection Fund.

For, A D B & Company,


ICAI Firm Regn. No 005593C

Sd/-

(Rajesh Kumar Chawda)

Partner

Membership No 405675

Place : Raipur

Dated : 21.04.2016

42



Report under the Companies (Auditor’s Report) Order, 2016 (CARO 2016)

The Annexure-A referred to in our report to the members CHHATTISGARH EAST-WEST RAILWAY

LIMITED (‘the Company’) for the year ended 31st March 2016. We report that:

(I) In respect of its Fixed Assets:

a) The Company has maintained proper records showing full particulars including quantitative details and

situation of fixed assets on the basis of available information.

b) As explained to us, all the fixed assets have been physically verified by the management in a phased

periodical manner, which in our opinion seems to be reasonable, having regard to the size of the Company

and nature of its assets. No material discrepancies were noticed on such physical verification as confirmed by

the management.

c) As per the documents available to us, the title deeds of the immovable property are not held in the name of

the company. The Office Building is taken on Lease by Chhattisgarh East Railway Limited from CSIDC for the

period of 30 years for joint use on 'Equal cost sharing basis' vide Minutes of the 1st & 4th Meeting of the

Board of Directors of the Company held on 05.04.2013 and 06.01.2014 respectively.

II) The Company does not have any inventories & accordingly the provisions of clauses (ii) of the paragraph 3 of

the CARO 2016 is not applicable to the Company.

III) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered

in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provision of

clause (iii)(a) to (iii)(c) of the paragraph 3 of the CARO 2016 are not applicable to the Company.

IV) The Company has not given any Loans or made Investment or provided Guarantee or Security under the

provisions of Section 185 and 186 of the Companies Act, 2013. Accordingly, the provision of clause (iv) of the

paragraph 3 of the CARO 2016 are not applicable to the Company.

V) According to the information and explanations given to us, the Company has not accepted any deposit from

the public in terms of directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or

any other relevant provisions of the Companies Act & rules framed there under. Therefore the provisions of

Clause (v) of paragraph 3 of the CARO 2016 are not applicable to the Company.

VI) The Company has not commenced any commercial production and hence maintenance of cost records

specified by the Government under Sub-Section (1) of Section 148 of the Companies Act, 2013 is not

applicable during the year under audit.

43



Annexure A to Independent Auditors’ Report

VII) In respect of statutory dues:

a) According to the records of the Company, dues of Provident Fund are presently paid by the deputing

company for its deputed staff i.e., South Eastern Coalfields Limited and Associate Company i.e., IRCON

International Limited on behalf of the company regularly with the appropriate authorities. The Company is

regular in depositing undisputed Statutory dues including Income Tax, Sales Tax, Wealth Tax, Service Tax,

duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been

generally regularly deposited with the appropriate authorities. According to the information and

explanations given to us, no undisputed amounts payable in respect of the aforesaid dues outstanding as

at 31st March 2016 for a period of more than six month from the date they become payable.

b) According to the information and explanation given to us and the records of the company as examined by us

there are no dues of Income Tax, Sales tax, Wealth tax, Service Tax, Duty of Customs, Duty of Excise, Value

Added Tax, Cess which have not been deposited as on account of disputes.

VIII) Based on our audit procedures and according to the information and explanations given to us, we are of the

opinion that the Company has not defaulted in repayment of dues to financial institutions, banks and

debenture holders.

IX) According to the information and explanation given to us, the Company has not raised money by way of

Initial Public offer or Further Public offer (including Debt Instruments). The Company has availed the term

loan of INR 4800.00 Lacs, INR 1950.00 Lacs & INR 750.00 Lacs from South Eastern Coalfields Limited, IRCON

International Limited & Chhattisgarh State Industrial Development Corporation Limited respectively during

the year and the loans were applied for the purposes for which they were raised.

X) In our opinion and according to the information and explanations given to us, no fraud by the Company and

no material fraud on the Company has been noticed or reported during the year.

XI) The Board of Directors of the company consists of 7 (Seven) Directors, viz., Chairman and 2 (two) Directors as

nominee of SECL, 2 (two) Directors as nominee of IRCON, 1 (One) Director as nominee of CSIDCL and 1 (One)

Director as nominee of Ministry of Railways (MoR). Therefore, the provisions of Clause (xi) of the paragraph 3

of the CARO 2016 are not applicable to the Company.

XII) In our Opinion and according to the information and explanations given to us, the Company is not a Nidhi

Company. Accordingly, the provisions of clause (xii) of the paragraph 3 of the CARO 2016 are not applicable

to the Company.

44



XIII) The transactions with related parties are in compliance of Sections 177 and 188 of Companies Act, 2013

wherever applicable and details have been disclosed in the financial statements etc, as required by the

applicable accounting standards.

XIV) During the year under review, the company has not made any preferential allotment or private placement of

shares or fully or partly convertible Debentures. Accordingly, the provisions of clause (xiv) of the paragraph 3

of the CARO 2016 are not applicable to the Company.

XV) The Company has not entered into any non-cash transaction with Directors or persons connected within as

per the provisions of Section 192 of the Companies Act, 2013. Accordingly, the provisions of clause (xv) of the

paragraph 3 of the CARO 2016 are not applicable to the Company.

XVI) The Company is not required to be registered under section 45- IA of the Reserve Bank of India Act, 1934.

Accordingly, the provisions of clause (xvi) of the paragraph 3 of the CARO 2016 are not applicable to the

Company.

45






Sd/-


Partner


Place : Raipur

Dated : 21.04.2016

Directions under section 143(5) of the Companies Act, 2013

Applicable for the year 2015-16 Accounts

1. Whether the Company has clear title/lease deeds for freehold and leasehold land respectively? If not please

state the area of freehold and leasehold land for which title/lease deeds are not available.

Comments: The title deeds of the leasehold land for office building are not held in the name of the

company. The cost of the office building is being shared equally with Chhattisgarh East Railway Limited. The

Office Building is taken on Lease by Chhattisgarh East Railway Limited from CSIDC for the period of 30 years

for joint use on 'Equal cost sharing basis'.

2. Whether there are any cases of waiver/write off of debts/loans/interest etc., if yes, the reasons there for and

the amount involved.

Comments: There are no cases of waiver/write off debts/loans/interest etc. during the year under review.

3. Whether proper records are maintained for inventories lying with third parties & assets received as

gift/grant(s) from Govt. or other authorities.

Comments: The Company does not have any inventories and no assets were received as gift/grant(s) from

Govt. or other authorities by the Company during the year.

Annexure B to Independent Auditors’ Report

46






Sd/-


Partner


Place : Raipur

Dated : 21.04.2016

To,

The Members,

CHHATTISGARH EAST-WEST RAILWAY LIMITED,

RAIPUR- 492013 (C.G.)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION

143 OF THE COMPANIES ACT, 2013 (“THE ACT”):

We have audited the internal financial controls over financial reporting of Chhattisgarh East-West Railway

Limited (“the Company”) as of 31 March 2016 in conjunction with our audit of the Standalone financial

statements of the Company for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS:

The Company’s management is responsible for establishing and maintaining internal financial controls

based on the internal control over financial reporting criteria established by the Company considering the

essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls

over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These

responsibilities include the design, implementation and maintenance of adequate internal financial controls

that were operating effectively for ensuring the orderly and efficient conduct of its business, including

adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and

errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable

financial information, as required under the Companies Act, 2013.

AUDITORS’ RESPONSIBILITY:

Our responsibility is to express an opinion on the Company's internal financial controls over financial

reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of

Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing,

issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent

applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls

and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note

require that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether adequate internal financial controls over financial reporting was established and

maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal

financial controls systems over financial reporting and their operating effectiveness. Our audit of internal

financial controls over financial reporting included obtaining an understanding of internal financial control

over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the

47



REPORT ON THE INTERNAL FINANCIAL CONTROLS

48



design and operating effectiveness of internal control based on the assessed risk. The procedures selected

depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the

financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion on the Company’s internal financial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING:

A company's internal financial control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting principles. A company's internal

financial control over financial reporting includes those policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as

necessary to permit preparation of financial statements in accordance with generally accepted accounting

principles, and that receipts and expenditures of the company are being made only in accordance with

authorisations of management and directors of the company; and (3) provide reasonable assurance

regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's

assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING:

Because of the inherent limitations of internal financial controls over financial reporting, including the

possibility of collusion or improper management override of controls, material misstatements due to error or

fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls

over financial reporting to future periods are subject to the risk that the internal financial control over

financial reporting may become inadequate because of changes in conditions, or that the degree of

compliance with the policies or procedures may deteriorate.

OPINION:

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over

financial reporting and such internal financial controls over financial reporting were operating effectively as

at 31 March 2016, based on the internal control over financial reporting criteria established by the Company

considering the essential components of internal control stated in the Guidance Note on Audit of Internal

Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.




Sd/-(Rajesh Kumar Chawda)

PartnerMembership No 405675

Place : Raipur

Dated : 21.04.2016

CHHATTISGARH EAST RAILWAY LIMILEDA Subsidiary of secl


FINANCIAL S T A T E M E N T S

As at 31 March 2016

BALANCE SHEET

50



Note No. As at 31-03-2015

I EQUITY AND LIABILITIES

1. Shareholders' Fund

a) Share Capital 4,05,50,000.00

b) Reserves & Surplus

2.3. Non-Current Liabilities

-4. Minority Interest -

5. Current Liabilities

a) Other Current Liabilities

II ASSETS

1. Non-Current Assets

(a) Fixed Assets

i) Tangible Assets - Gross Block

Net Carrying Value

ii) Intangible Assets - Gross Block

iii) Capital Work-in-Progress

(b) Non-Current Investments

(c ) Long Term Loans & Advances

2. Current Assets

(a) Cash & Bank Balance

(b) Short Term Loans & Advances

11 & 12

Share Application money pending allotment

Less : Depreciation, Impairment & Provisions

Significant Accounting Policies & Notes on Accounts

1

2

3

5A

6

7

8

Total

Total

4,05,50,000.00

(23,36,328.00)

77,36,92,642.00

-

5,42,97,266.00

86,62,03,580.00

1,49,73,367.00

11,86,710.00

1,37,86,657.00

-

41,66,93,924.00

-

29,22,78,299.00

14,22,86,397.00

11,58,303.00

86,62,03,580.00

As at 31-03-2016

As at 31st MARCH 2016

(17,50,181.00)

a) Long Term Borrowing

4

--

93,88,621.00

4,81,88,440.00

5B

1,48,88,190.00

4,74,728.00

1,44,13,462.00

-

75,53,702.00

-

2,47,47,529.00

13,36,359.00

1,37,388.00

4,81,88,440.00

Sd/-

(ANUP AGARWAL)

CHIEF FINANCIAL OFFICER

Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-

AS PER OUR REPORT OF EVEN DATE,

DIN: 07005297

(DR.R.S. JHA)

DIRECTOR DIN: 06664375

[Rajesh Kumar Chawda]

(A.P. PANDA)

CHARTERED ACCOUNTANTS,

CHAIRMAN

PARTNER Mem No .405675

For, A D B & Company

Sd/-

ICAI Firm Regn No. 005593C

(Figures in `)

FOR THE PERIOD ENDED ON 31st MARCH 2016

INCOMEI Revenue From Operations -

II Other Income

III Total Revenue (I+II)

IV EXPENSES

-Employee Benefit Expenses

Other Expenditure6,50,540.00 6,44,610.00

Total Expenses 6,44,610.00

V Profit/(Loss) before tax (III-IV) (4,04,397.00)

VI

VII

VIII

(4,04,397.00)Less : Tax Expense

Basic & Diluted

Weighted Average number of equity Shares (Face Value of

` 10/- Each)

(Figures in `)

For the YearEnded

31-03-2016

Note No.

-

9 64,393.00

64,393.00

-

10

6,50,540.00

(5,86,147.00)

(5,86,147.00)

-

(0.14) 40,55,000

STATEMENT OF PROFIT & LOSS

2,40,213.00

2,40,213.00

Profit (Loss) for the period (V-VI)

Earning Per Equity Shares (Face Value of Rs. 10/- Each)

(0.12) 32,43,027

Significant Accounting Policies & Notes on Accounts 11 & 12

51



For the YearEnded

31-03-2015

Sd/-

(ANUP AGARWAL)


Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-


DIN: 07005297

(DR.R.S. JHA)



(A.P. PANDA)


CHAIRMAN



Sd/-


I

2

A. CASH FLOWS FROM OPERATING ACTIVITIES:

Net Profit before tax (4,04,397.00)

Operating profit before Current / Non Current Assets and Liabilities

Adjustments for :

Income from other sources

Depreciation & Impairment of Fixed Assets

Operating profit before Current / Non Current Assets and Liabilities (1,60,773.00)

Short/Long term Loans / Advances & Other Current Assets

Short/Long term Liabilities and Provisions

Cash generated from operations

Net Cash Flow from Operating Activities

B. CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of Office Building

Acquisition of Furniture & Fixtures

Capital work -in- Progress

Interest Received from CLTD Account

Net cash flow from Investing Activities

C. CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Issue of Share Capital Proceeds from Loan -

Interest CostNet cash used in Financing Activities 4,00,50,000.00

Net increase/ decrease in Cash & Bank Balances (A+B+C)

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

All figures in bracket represent outflow

(Figures in `)

(5,86,147.00)

64,393.00

7,11,982.00

61,442.00

26,85,51,685.00

4,49,08,645.00

(22,35,81,598.00)

(22,35,81,598.00)

(76,174.00)

(9,003.00)

(40,91,40,222.00)

64,393.00

(40,91,61,006.00)

75,00,00,000.00

2,36,92,642.00 77,36,92,642.00

14,09,50,038.00

13,36,359.00

14,22,86,397.00

For the YearEnded

31-03-2016

(5,86,147.00) (4,04,397.00)

2,31,104.00

4,74,728.00

2,48,84,917.00

80,42,813.00

(1,70,02,877.00)

(1,70,02,877.00)

(1,29,62,688.00)

(19,25,502.00)

(75,53,702.00)

2,31,104.00

(2,22,10,788.00)

4,00,50,000.00

8,36,335.00

5,00,024.00

13,36,359.00

52



The Cash Flow Statement (Indirect Method)For The Year Ended 31-03-2016

For the YearEnded

31-03-2015

Sd/-

(ANUP AGARWAL)


Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-


DIN: 07005297

(DR.R.S. JHA)



(A.P. PANDA)


CHAIRMAN



Sd/-


-

-

I) As per Clause 3 of the Memorandum of Understanding signed between GoCG, SECL & IRCON International Ltd. Dated 03.11.2012, GoCG's share of equity in the JVC shall coresspond to the value of land provided by the State Govt. or 10% whichever is more. Since, no land has been provided, therefore, the value of equity of State Govt. (Represented by CSIDCL) is only 0.13% on the Balance Sheet date.

( Figures in ` )

As at As at

31-03-2015

Authorised Capital :

50,00,000 (P.Y. 50,00,000) Equity Shares of `10.00 each

5,00,00,000.00

Issued, Subscribed & Paid up Capital :

40,55,000 (P.Y. 40,55,000)Equity Shares of `10.00 each fully paid up

4,05,50,000.00

4,05,50,000.00

a) Reconciliation of shares outstanding at the beginning and at the end of the reporting period

No. of shares Share Capital (`) No. of shares Share Capital (`)

Outstanding at the beginning of the period 40,55,000 4,05,50,000.00

Issued during the period -

50,000

4,00,50,000.00

Outstanding at the end of the period 40,55,000

b) Terms/rights attached to equity shares

c)

No. of shares

Held

% of Total

Shares

No. of shares

Held

% of Total

Shares

South Eastern Coalfields Limited

and its Nominees (Holding Company) 28,80,000 28,80,000 71.02%

IRCON International Limited 11,70,000 11,70,000 28.85%

CSIDCL (Representing GoCG) - - - -

Current Year Previous year

The company has only one class of equity shares having at par value of `10 per share.

Particulars

SHARE CAPITAL

Name of the Shareholder

Details of shareholders holding more than 5% shares in the company.

Current Year Previous Year

31-03-2016

5,00,00,000.00

4,05,50,000.00

TOTAL 4,05,50,000.00

- 40,05,000

5,00,000.00

4,05,50,000.00 40,55,000 4,05,50,000.00

53



NOTES TO BALANCE SHEETNOTE - 1

PARTICULARS

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will bein proportion to the number of equity shares held by the shareholders.

71.02%

28.85%

As at As at

31-03-2015

Surplus in Profit & Loss Account

As per last Balance Sheet

Profit/(Loss) after Tax during the year (5,86,147.00) (4,04,397.00)

TOTAL (17,50,181.00)

RESERVES & SURPLUS

( Figures in ` )

31-03-2016

(17,50,181.00)

(23,36,328.00)

(13,45,783.70)

NOTE - 3

TERM LOAN

LONG TERM BORROWING

TERM LOAN

Loan From South Eastern Coalfields Limited

Add: Interest (Net of TDS)

Loan From IRCON International Limited 19,50,00,000.00

Add: Interest (Net of TDS)

Loan From CSIDCLAdd: Interest (Net of TDS)

TOTAL (C)

CLASSIFICATION 1SecuredUnsecured

CLASSIFICATION 2

Loan Guaranteed by Directors & Others

Particulars of Loan Nature of Guarantee

Amount In (`)

TOTAL (A)

TOTAL (B)

48,00,00,000.00

( Figures in ` )

As at As at

31-03-2016 31-03-2015

-

1,80,29,300.00 -

49,80,29,300.00 -

-

38,65,808.00

19,88,65,808.00

7,50,00,000.00 -

7,67,97,534.00 -

- -

77,36,92,642.00 -

17,97,534.00

54



NOTES TO BALANCE SHEETNOTE - 2

TOTAL (A+B+C)

77,36,92,642.00

-

-

-

-

(1) The Company has taken the loan from South Eastern Coalfields Limited vide Term Loan

Agreement Dated 21.01.2015 amounting to ` 96.00 Crores during the year at 12% interest rate

per annum with compounding at quarterly rests. The repayment period of loan shall be of 05

years, excluding the time involved for construction of project i.e., Moratorium Period not

exceeding five years from the date of the loan Agreement.

(2) The Company has taken the loan from IRCON International Limited vide Term Loan Agreement

Dated 05.01.2016 amounting to ` 19.50 Crores during the year at 12% interest rate per annum

with compounding at quarterly rest. The repayment period of loan Shall be of 05 years, excluding

the time involved for construction of project i.e., Moratorium Period not exceeding five year from

the date of the loan Agreement.

(3) The Company has taken the loan from CSIDC vide Term Loan Agreement Dated 18.12.2015

amounting to ` 15 Crores During the year at 12% interest rate per annum with compounding at

quarterly rest. The repayment period of the loan shall be of 05 year, excluding the time involved

for construction of project i.e., Moratorium period not exceeding five year from the date of the

loan Agreement.

However the Loan Shall be secured by the pari Passu Charge (In Proportion with other lenders)

on :

a) All infrastructures to be created/developed by CEWRL.

b) All Future receivable after successful implementation of the project by CEWRL.

c) Any Amount to be released by Ministry of Railways under the concession agreement, whereby

IRCON will have pari passu rights to adjust the money released by Ministry of Railways against its

outstanding dues, if any.

55



Notes:

NOTES TO BALANCE SHEET

OTHER CURRENT LIABILITIES

Other Payables:-

a) For Expenses:

Consultancy Charges

Vehicle Hire Charges

Printing Expenses

Office & Workshop Repair & Maintenance

Telephone Charges

Provision for Audit Fees & Expenses 65,312.50

b) Others:

Income Tax Deducted at SourceIncome Tax Deducted at SourceDeposits from Contractors & OthersOther Liabilities

TOTAL

Notes:-

Other Liabilities includes expenditure amounting to ` 96,02,920.35 (Previous Year ̀50,15,028.16) incurred by SECL (Holding company) on behalf of the company.

NOTE - 4

( Figures in ` )

As at As at

31-03-2016 31-03-2015

3,46,90,244.00 30,708.0062,438.00 61,358.00

14,424.00

15,914.00 14,090.00

4,330.00

3,303.00 -

3,48,47,160.50 1,50,500.00

54,09,419.00 48,925.001,77,683.00 64,930.00

1,38,63,003.35 91,24,265.66

1,94,50,105.35 92,38,120.66

5,42,97,265.85 93,88,620.66

25,590.00

IRCON International LimitedCare AdvisoryAGR Reddy & Company

3,45,03,300.00

1,72,894.0014,050.00

6,000.00

Other Liabilities includes expenditure amounting to ` 42,60,083.00 (Previous Year ̀41,09,237.50) incurred by IRCON International Limited on behalf of the company.

56




3,949.00

1.

2.

Electricity Charges

57



NOTES TO BALANCE SHEETN

OT

E -

5A

FIX

ED

A

SS

ET

S

The C

om

pany is

shari

ng the c

ost

of O

ffice B

uildin

g taken o

n le

ase

by C

hhatt

isgarh

East

Railw

ay L

imit

ed fro

m C

SID

CL for

the p

eri

od o

f 30 y

ears

for

join

t use

on 'E

qual

stth

C

ost

Shari

ng b

asi

s' v

ide M

inute

s of

the 1

and 4

Meeti

ng o

f th

e B

oard

of

Dir

ecto

rs o

f th

e C

om

pany h

eld

on 0

5.0

4.2

013 a

nd 0

6.0

1.2

014 r

esp

ecti

vely

. T

here

fore

, th

e a

mort

isati

on o

f buildin

g h

as

been d

one takin

g in

to c

onsi

dera

tion the u

sefu

l lif

e o

f 30 y

ears

.

GR

OSS B

LO

CK

PA

RT

ICU

LA

RS

TA

NG

IBLE

ASSET

S

As

on

01.0

4.2

015

Buildin

gs/

wate

r su

pply

/Roads

&Culv

ert

s (a

cquir

ed u

nder

Lease

)

76,1

74.0

01,3

0,3

8,8

62.0

04,3

5,6

91.0

07,3

2,8

26.0

01,2

3,0

6,0

36.0

0

2,7

6,2

91.0

04,5

3,8

84.0

014,8

0,6

21.0

0

7,1

1,9

82.0

011,8

6,7

10.0

01,3

7,8

6,6

57.0

0

19,2

5,5

02.0

019,3

4,5

05.0

0

1,4

8,8

8,1

90.0

01,4

9,7

3,3

67.0

0

Furn

iture

&

Fix

ture

s/O

ffice

Tools

&

Equip

ments

Tota

l

PR

EV

IOU

S Y

EA

R

As

on

31.0

3.2

016

As

on

31.0

3.2

016

As

on

31.0

3.2

016

Tota

l D

epre

cia

tion

&

Impair

ment

Loss

As

on

31.0

3.2

016

Addit

ion

Duri

ng

the p

eri

od

Adj.

/sa

le/

transf

er

duri

ng

the

peri

od

Adj.

/sa

le/

transf

er

duri

ng

the

peri

od

Adj.

/sa

le/

transf

er

duri

ng

the

peri

od

Addit

ion

Duri

ng t

he

peri

od

Addit

ion

Duri

ng

the

peri

od

As

on

01.0

4.2

015

As

on

01.0

4.2

015

DEPR

EC

IAT

ION

IMPA

IRM

EN

T

1,2

9,6

2,6

88.0

0-

--

--

--

--

--

--

-

--

--

--

-

-1,4

8,8

8,1

90.0

0-

1,4

8,8

8,1

90.0

0-

--

--

-

As

on

31.0

3.2

015

CA

RRY

ING

VA

LU

E

-

(Fig

ure

s in

`)

2,9

7,1

35.0

01,2

6,6

5,5

53.0

0

9,0

03.0

01,7

7,5

93.0

017,4

7,9

09.0

0

85,1

77.0

04,7

4,7

28.0

01,4

4,1

3,4

62.0

0

4,7

4,7

28.0

01,4

4,1

3,4

62.0

04,7

4,7

28.0

0-

58



NOTES TO BALANCE SHEETN

OT

E -

5 B

CO

ST

CA

PIT

AL-W

OR

K-I

N-P

RO

GR

ESS

PA

RT

ICU

LA

RS

WO

RK

-IN

-PR

OG

RESS

As

on

01.0

4.2

015

Deve

lopm

ent-

Reve

nue

Expense

3,4

7,8

5,2

22.4

44,2

3,3

8,9

24.4

44,2

3,3

8,9

24.4

4

37,4

3,5

5,0

00.0

037,4

3,5

5,0

00.0

037,4

3,5

5,0

00.0

0

40,9

1,4

0,2

22.0

041,6

6,9

3,9

24.0

0

Deve

lopm

ent

under

Const

ruct

ion

Tota

l

PR

EV

IOU

S

YEA

R

As

on

31.0

3.2

016

As

on

31.0

3.2

016

As

on

31.0

3.2

016

Tota

l Pro

vis

ion

& Im

pair

ment

As

on

31.0

3.2

016

Addit

ion D

uri

ng

the p

eri

od

Adj.

/sa

le/

transf

er

duri

ng

the

peri

od

Adj.

/sa

le/

transf

er

duri

ng

the

peri

od

Adj.

/sa

le/

transf

er

duri

ng

the

peri

od

Addit

ion

Duri

ng t

he

peri

od

Addit

ion

Duri

ng

the

peri

od

As

on

01.0

4.2

015

As

on

01.0

4.2

015

PR

OV

ISIO

NIM

PA

IRM

EN

T L

OSS

--

--

--

--

--

--

--

--

--

--

-

--

--

--

--

--

--

--

--

--

--

--

As

on

31.0

3.2

015

CA

RRY

ING

VA

LU

E

- -

(Fig

ure

s in

`)

75,5

3,7

02.0

075,5

3,7

02.0

0

75,5

3,7

02.0

041,6

6,9

3,9

24.0

075,5

3,7

02.0

0

75,5

3,7

02.0

075,5

3,7

02.0

075,5

3,7

02.0

0

1.

Deve

lopm

ent

Under

Const

ruct

ion i

ndic

ate

s paym

ent

made t

o I

RCO

N t

ow

ard

s fa

cilita

ting L

and A

cquis

itio

n,

Pre

para

tion o

f Feasi

bilit

y Report

and D

eta

iled P

roje

ct

Report

as per th

e p

ara

mete

rs o

f Pro

ject

Execu

tion A

gre

em

ent si

gned b

etw

een the C

om

pany

and IR

CO

N In

tern

ati

onal L

imit

ed d

ate

d 0

5.0

4.2

014.

2.

T he r

eve

nue e

xpense

s am

ounti

ng t

o `

4,2

3,3

8,9

24.4

4 incu

rred d

uri

ng t

he y

ear

are

att

ributa

ble

to t

he P

roje

ct C

ost

and a

ccord

ingly

has

been c

apit

alize

d a

s per

the

applica

ble

Acc

ounti

ng S

tandard

and h

as

been s

how

n u

nder

Capit

al W

ork

in P

rogre

ss. The b

reakup o

f th

e C

apit

al W

ork

in P

rogre

ss h

as

been d

eta

iled u

nder

Note

12.3

of

Addit

ional N

ote

s on A

ccounts

.

A.

Const

ruct

ion

Charg

es

B.

Consu

ltancy

and O

ther

Charg

es

--

--

--

--

--

--

--

-

LONG TERM LOANS & ADVANCES As at31-03-2016

ADVANCES:

Advances to IRCON -

2,40,00,000.00

Other Advances

Security Deposits - Unsecured considered good

Deposit for P&T, Electricity etc. (1)

- Unsecured considered good

TOTAL 29,22,78,299.00

NOTES:

2.

3.

Payment towards Diversion of Forest Land and Govt. Land as per Clause 6 of MoU dated03.11.2012

29,14,52,270.00

Total

4.

5.` 3,81,099 pertains to the amount of security deposit in respect of lease office building from CSIDCL.

Due by the Companies in which directors of the companies is also a Director/ Member

1. Transactions with the Holding Company and with its other Subsidiaries are accounted for on the basis of debit/credit memos.

Transactions with other other Subsidiaries of the Holding Company are free of interest.

As at

2,47,47,529.00

3,81,099.00

29,18,72,745.00

24,455.00

31-03-2015

( Figures in ` )

29,18,72,745.00

NOTE - 6

3,41,975.00

29,22,53,844.00 2,47,23,074.00

24,455.00

Non-Interest bearing refundable advance given to FA & CAO, South East Central Railway (SECR) towards Compensation of Revenue Land as per clause 7 of MoU dated 03.11.2012

4,20,475.00

3,81,099.00

Due by the parties in which directors of the company is /are Intrested

-

3,81,099.00

Nil Nil

59




3,81,099.00

(A)

(B)

( Figures in ` )Other Advances includes:

NOTE - 7

CASH & BANK BALANCE

Cash & Cash Equivalents

Balances with Scheduled Banks

- In Current Accounts

- Cash In Hand

TOTAL

( Figures in ` )

As at

31-03-2016 31-03-2015

13,36,359.00

13,36,359.00

As at

14,22,86,397.00

-

14,22,86,397.00

-

SHORT TERM LOANS & ADVANCES

ADVANCE

Advance to Employee

( Recoverable in cash or in kind or for value to be received)

ADVANCE PAYMENT OF STATUTORY DUES

Advance Income Tax

Prepaid Expenses towards Lease Rent

TOTAL

Note :

CURRENT PERIOD PREVIOUS PERIOD

Due by the Companies in which Directors of the company is also a director/member

NIL NIL

Due by the parties in which the Director(s) of company is/are interested

NIL NIL

( Figures in ` )

As at As at31-03-2015

-

-

-

NOTE - 8

CLOSING BALANCE

31-03-2016

-

-

-

10,49,213.00

1,09,090.00

11,58,303.00

1,07,989.00

29,399.00

1,37,388.00

60




Tax Deducted at Source

OTHER INCOME For the YearEnded

31-03-2016 31-03-2015

31-03-2016 31-03-2015

Income From Others

Interest (Gross ):

From Deposit with Banks

Liability Write Backs

64,393.00

TOTAL

( Figures in `)

OTHER EXPENDITURE

Consultancy Charges

Legal Charges

Books & Periodicals

Office Contingent Expenses

Meeting Expenses

Bank Charges

Printing & Computer Stationary

Publication Expenses

Payment Round Off

1,65,140.00

15,767.00

3,360.00

59,610.00

2,22,326.50

228.00

-

89,696.00

-

TOTAL 6,44,610.00

NOTE - 10

( Figures in `)

NOTE - 9

NOTES TO STATEMENT OF PROFIT & LOSS

64,393.00

2,31,104.00

9,109.00

2,40,213.00

6,50,540.00

1,46,068.00

18,079.00

4,244.00

89,997.00

2,59,518.00

479.00

780.00

78,000.00

1.00

61



For the Year

-

For the YearEnded

For the YearEnded

Ended

PAYMENT TO AUDITORSFor Audit FeesFor Out of Pocket Expenses

94,412.50

-

44,944.00

2,500.00

CORPORATE INFORMATION:

Chhattisgarh East-West Railway Limited (CEWRL) (the “Company”) has been incorporated on 25th March,

2013 as a Joint Venture Company of South Eastern Coalfields Limited (SECL), IRCON International Limited

and Govt. of Chhattisgarh (GoCG) represented by Chhattisgarh State Industrial Development Corporation

Limited (CSIDC) after execution of a Memorandum of Understanding dated 03rd November, 2012 to build,

construct, operate and maintain the East-West Railway Corridor (Corridor-III) and to develop the required

Rail Infrastructure. As per Memorandum of Understanding amongst the joint venture partners, the

shareholding proportion of the promoter companies are 64% for SECL, 26% for IRCON and 10% for CSIDC.

The company has received Certificate of Commencement of Business on 7th May, 2013 and its revenue

operation are yet to commence.

SIGNIFICANT ACCOUNTING POLICIES:

11.1 BASIS OF PREPARATION:

The financial statements are prepared under the historical cost convention in accordance with the generally

accepted accounting principles and applicable Accounting Standards.

11.2 BASIS OF ACCOUNTING:

All expenses and incomes are booked in the functional heads of accounts.

11.3 RECOGNITION OF INCOME AND EXPENDITURE:

Revenue/Income and Cost/Expenditure are generally recognized on accrual basis as they are earned or

incurred and provision is made for all known liabilities.

11.4 USE OF ESTIMATES:

The presentation of financial statements in conformity with the generally accepted accounting principles

requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on

the date of the financial statements and the reported amount of revenues and expenses during the reported

period. Difference between the actual result and estimates are recognised in the period in which the results

are known / materialised.

11.5 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving substantial degree of estimation in measurement are recognized when there is present

obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent

Liabilities are not recognized but are disclosed in the notes.

Contingent Assets are neither recognized nor disclosed in the financial statements.

NOTE-11

62



11.6 REVENUE RECOGNITION:

As the Company is still under the pre-operative stage and the construction is yet to be completed as on the

balance sheet date, based on the conservatism and as per AS-9, revenue has been recognized to the extent

of relatable costs incurred by the company on the project and as a result no margin has been recognized.

11.7 PREOPERATIVE EXPENSES:

Indirect expenditure incurred during the year and not related to project cost is debited to Statement of Profit

& Loss as per the provisions of AS-26.

11.8 FIXED ASSETS:

(i) The gross block of Fixed Assets is stated at cost of acquisition or construction, including any cost attributable

to bringing the assets to their working condition for their intended use except Project Land.

(ii) The Land for the Project is being acquired under the Indian Railways Act, in favour of Indian Railways. The

cost of the land is to be borne by the Company which shall remain as a non-interest bearing refundable

deposits with the Indian Railways.

11.9 CAPITAL WORK-IN-PROGRESS:

All project-related expenditure viz. civil works, machinery under erection, construction and erection

materials, pre-operative expenditure, expenditure directly related to the project and incidental to setting up

project facilities, borrowing cost incurred prior to the date of commencement of commercial operation, and

trial run expenditure are shown under Capital Work-in-progress. These expenses are net of recoveries and

income (net of tax) from project specific surplus funds.

11.10 DEPRECIATION/AMORTISATION:

Depreciation on fixed assets is provided on the basis of straight line method in the manner specified as per

part ‘C’ of Schedule II of the Companies Act, 2013 on prorata basis from the month the assets are ready to

put to use except on building which has been depreciated over the lease period of 30 years.

11.11 CASH FLOW STATEMENT:

Cash Flows are reported using the indirect method as per AS-3. The cash flows from operating, investing

and financial activities of the Company are segregated based on the available information.

11.12 EARNING PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to Equity

Shareholders by weighted average number of equity shares outstanding during the period. The weighted

average number of equity shares outstanding during the period are adjusted for events of bonus issue,

bonus element in a right issue to existing shareholders.

63



For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to

equity shareholders and the weighted average number of shares outstanding during the year are adjusted

for the effects of all dilutive potential equity shares.

11.13 CASH AND CASH EQUIVALENTS:

Cash and bank balances comprise of cash at bank, cash in hand, demand deposits and bank deposits with

maturity period up to 12 months from the Balance Sheet date.

For the purpose of cash flow statement, cash and cash equivalents consist of cash and bank balances,

cheques in hand and demand deposits net of bank overdrafts.

11.14 PROVISION OF CURRENT AND DEFERRED TAX:

Provision of Current tax is made after taking into consideration benefits admissible under the provisions of

Income Tax Act, 1961. Deferred Tax is accounted for by computing the tax effect of timing differences which

arises during the year. Deferred Tax Liability is calculated by applying Tax rate and Tax Laws that have been

enacted by the Balance Sheet date.

11.15 EMPLOYEE BENEFITS:

(i) Short term employee benefits are charged off at the undiscounted amount in the year in which the related

service rendered.

(ii) Post-employment and other long term employee benefits are charged off in the year in which the employee

has rendered services. The amount charged off is recognized at the present value of the amounts payable

determined using actuarial valuation techniques. Actuarial gain and losses in respect of post-employment

and other long term benefits are charged to Profit & Loss Account/Project Development Expenditure

Account.

11.16 PRIOR PERIOD ADJUSTMENT AND EXTRAORDINARY ITEMS:

Income/expenditure relat ing to pr ior per iod and prepaid expenses not exceeding

`10,00,000.00 in each case are treated as income/expenditure of the current year.

11.17 BORROWING COST:

(I) Borrowing cost in ordinary course of business are recognized as expense of the period in which they are

incurred.

(II) Borrowing cost that is directly attributable to acquisition, construction or production of a qualifying asset is

capitalized as part of the cost of the asset.

64



ADDITIONAL NOTES ON ACCOUNTS

12.1 GoCG's share of equity in the JVC shall correspond to the value of land provided by the State Govt. or 10%

whichever is more as per Clause 3 of the Memorandum of Understanding signed between SECL, IRCON &

GoCG, Dated 03.11.2012. Since, no land has been provided, therefore, the value of equity of State Govt.

(Represented by CSIDCL) is only 0.13% on the Balance Sheet.

12.2 CONTINGENT LIABILITIES AND COMMITMENTS :

(To the extent not provide for)

a) Claims against the company not acknowledged as debts as on 31.03.2016: ̀ Nil.

b) Commitments:-

i) Estimated amount of contracts remaining to be executed on capital account and not provided for in the

accounts: ̀ Nil

ii) Estimated amount of contracts remaining to be executed on revenue account and not provided for in the

accounts: ̀ Nil

12.3 The revenue expenses amounting to ` 4,23,38,924.44 incurred during the period are considered towards

implementation of the project has been capitalized as per the applicable Accounting Standard and has been

shown under Capital Work in Progress are as under :-

65



NOTE-12

1 2 3

4

5

6

7

8

9

10

Salary & Wages

Contribution to PF

Travelling Expenses

Rent,Taxes and office

Maintenance Expenses

Depreciation and

Amortization

Other Expenditure

Interest

Tax Provision

Total

Less : Interest Income

Less : Interest Income- Others

Total

50,66,329.00

3,24,377.50

3,70,521.50

4,19,162.00

4,74,728.00

8,98,584.00

-

-

75,53,702.00

-

-

75,53,702.00

58,67,237.19

4,54,570.50

2,78,192.00

5,74,951.50

7,11,982.00

23,58,927.75

2,63,25,158.00

5,89,523.00

3,72,84,192.44

24,97,669.00

1,321.00

3,47,85,202.44

1,09,33,566.15

7,78,948.00

7,72,384.00

9,94,113.50

11,86,710.00

32,57,511.75

2,63,25,158.00

5,89,523.00

4,48,37,914.40

24,97,669.00

1,321.00

4,23,38,924.44

Balance as on

01.04.2015

Amount `

Balance as on

31.03.2016

Amount `

Addition

During the Period

Amount `ParticularsSl.No.

All such other expenses which are of administrative nature and not attributable to the project has been

charged to Profit & loss Account.

12.4 None of the employees of the company were in receipt of remuneration in excess of the limits laid down

under section 197 (12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment &

Remuneration of Managerial Personnel) Rules, 2014.

12.5 RETIREMENT BENEFIT :

The promoter companies of Chhattisgarh East-West Railway Limited viz., South Eastern Coalfields Limited

and IRCON International Limited has deputed its staff to the company for implementation of the project as

per Clause 16 of the Memorandum of Understanding signed between SECL, IRCON & GoCG, dated

03.11.2012. The provision of proportionate share of retirement benefits has not been made in the books of

the company, however its provision are subject to compliance by respective deputing companies as per the

provisions of AS-15.

12.6 Certain expenses to the tune of ̀ 39,99,458.00 incurred by Chhattisgarh East Railway Limited (CERL) jointly

on behalf of the company has been shared equally vide decision taken at the 1st Meeting of the Board of

Directors of the Company dated 05.04.2013.

12.7 RELATED PARTY DISCLOSURE :

In view of the exemption granted to state controlled enterprises as regards related party relationship with

other state controlled enterprises and transaction with such enterprises, no such disclosure under the

Accounting Standard (AS-18) on Related Party Disclosure is required.

66



12.8 EARNING PER EQUITY SHARE:

Sl. No. Profit available to equity shareholders Current Year Previous Year

(A) Profit / (Loss) after Tax ( `) (5,86,147.00) (4,04,397.00)

Number of Equity Shares 4055000 4055000

(B) Weighted Average Number of equity 4055000 3243027

shares outstanding

(C) Basic/Diluted Earnings Per Share (0.14) (0.12)

(A / B) (`)

Nominal Value of an Equity Share (`) 10 10

12.9 PREVIOUS YEAR’S FIGURES:

Figures of previous year have been regrouped, rearranged wherever necessary to conform

to this year's classification.

12.10 Impact of Change in Accounting Policy: Nil

67



Sd/-

(ANUP AGARWAL)


Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-


DIN: 07005297

(DR.R.S. JHA)



(A.P. PANDA)


CHAIRMAN



Sd/-


(Figures in ` )

For the Quarter

Ended

31.03.2016

For the Quarter

Ended

31.12.2015

For the Quarter

Ended

31.03.2015

For the Year

Ended

31.03.2016

For the Year

Ended

31.03.2015

Unaudited Unaudited Unaudited Audited Audited

1 Income From operations

(a) Revenue from transportation of Coal

(b) Revenue from Passenger Services

Total income from operations (net)

2 Opearting Expenses

(a) Selling & Marketing Expenses

(b) Administrative Expenses

Non-Opearting Expenses -

(d) Other Expenditure 1,73,115.00 2,04,261.00 1,49,609.00 6,50,540.00 6,44,610.00

Total Expenses 1,73,115.00 2,04,261.00 1,49,609.00 6,50,540.00 6,44,610.00

3 Profit (Loss) from Operations before

Other Income, Finance costs and

Execptional Items (1-2)

(1,73,115.00) (2,04,261.00) (1,49,609.00) (6,50,540.00) (6,44,610.00)

4 Other Income - 64,393.00 2,40,213.00

5 Profit / (Loss) from ordinary activities

before finance costs and Execeptional

Items(3+4)

(1,73,115.00) (2,04,261.00) (1,14,308.00) (5,86,147.00) (4,04,397.00)

6 Finance Costs

7 Profit / (Loss) from ordinary activities

after finance cost but before Exceptional

Items (5-6)

8 Exceptional items

9 Profit (+) / Loss (-) from Ordinary

Activities before tax (7+8)

10 Tax Expenses

11 Net Profit / Loss from Ordinary Activities

after tax (9-10)

12 Extraordinary Item -

13 Net Profit (+) / Loss (-) for the period

(11+12)

14 Share of Profit / (loss) of associates -

15 Minority interest * -

-

-

-

-

-

-

-

16 Net Profit / (loss) after taxes, minority

interest and share of profit / (loss) of

associates (13+14+15)

17 Paid-up equity share capital

(4055000 Equity shares of face value

of `10 per share fully paid up)

4,05,50,000.00 4,05,50,000.00 4,05,50,000.0 4,05,50,000.00 4,05,50,000.00

Annexure- I to SEBI (LODR), 2015 Statement of Unaudited/ Audited Results for the Quarter ended 31.03.2016, Quarter ended 31.12.2015, Quarter ended

31.03.2015, Year ended 31.03.2016, Year Ended 31.03.2015

PART - I

Particulars

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

35,301.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(1,73,115.00) (2,04,261.00) (1,14,308.00) (5,86,147.00) (4,04,397.00)

(1,73,115.00) (2,04,261.00) (1,14,308.00) (5,86,147.00) (4,04,397.00)

(1,73,115.00) (2,04,261.00) (1,14,308.00) (5,86,147.00) (4,04,397.00)

(1,73,115.00) (2,04,261.00) (1,14,308.00) (5,86,147.00) (4,04,397.00)

68



-

-

-

-

-

-

-

(1,73,115.00) (2,04,261.00) (1,14,308.00) (5,86,147.00) (4,04,397.00)

Statement of Unaudited/ Audited Results for the Quarter ended 31.03.2016, Quarter ended 31.12.2015, Quarter ended 31.03.2015, Year ended 31.03.2016, Year Ended

31.03.2015

(Figures in `)

For the Quarter

Ended

31.03.2016

For the

Quarter Ended

31.12.2015

For the Quarter

Ended

31.03.2015

For the Year

Ended

31.03.2016

For the Year

Ended

31.03.2015


18 Reserve excluding Revaluation Reserves

as per balance sheet of previous

accounting year

- - - -

19.

i

Earning Per Share (EPS)

(before extraordinary items)

(of ` ____/- each not annualised)

(a) Basic - - - -

(b) Diluted EPS - - - -

19.

ii

Earnings per share

(after extraordinary items)

(of ` 10/- each not annualised)

(a) Basic (0.04) (0.01) (0.03) (0.14) (0.12)

(b) Diluted EPS (0.04) (0.01) (0.03) (0.14) (0.12)

Particulars

PART - I

69



Annexure- I to SEBI (LODR), 2015

Sd/-

(ANUP AGARWAL)


Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-


DIN: 07005297

(DR.R.S. JHA)



(A.P. PANDA)


CHAIRMAN



Sd/-


-

-

-

PART-II Statement of Unaudited/ Audited Results for the Quarter ended 31.03.2016 Quarter ended 31.12.2015, Quarter ended 31.03.2015, Year ended 31.03.2016, Year Ended 31.03.2015

For the Quarter

Ended

31.03.2016

For the

Quarter Ended

31.12.2015

For the Quarter

Ended

31.03.2015

For the Year

Ended

31.03.2016

For the Year

Ended

31.03.2015


A PARTICULARS OF SHAREHOLDING

1 Public Shareholding :

- No. of Shares - - - - -

- Percentage of shareholding - - - - -

a) Pledged/ Encumbered

- No. of Shares - - - - -

- Percentage of Shares (as a % of

the total shareholding of promoter

and promoter group)

- - - - -


the total share capital of the company)

- - - - -

b) Non- Encumbered


the total shareholding of promoter

and promoter group)

100.00 100.00 100.00 100.00 100.00


the total share capital of the

company)

- - - - -

B

Pending at the beginning of the quarter

Particulars

Disposed of during the quarter N.A.

N.A.

For the Quarter Ended 31.03.2016Particulars

N.A.

Received during the quarter

INVESTOR COMPLAINTS

Remaining unresolved at the end of the quarter N.A.

4055000 4055000 4055000 4055000 4055000

70



Sd/-

(ANUP AGARWAL)


Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-


DIN: 07005297

(DR.R.S. JHA)



(A.P. PANDA)


CHAIRMAN



Sd/-


- No. of Shares

(Figures in `)

As at 31-03-2016 As at 31-03-2015

A

1

4,05,50,000.00

(23,36,328.00) (17,50,181.00)

- -

3,82,13,672.00

2 - - 3 - - 4

77,36,92,642.00

-

- - - - - -

77,36,92,642.00

-

5

- -

- -

5,42,97,266.00

- -

5,42,97,266.00 4,81,88,440.00

86,62,03,580.00 4,81,88,440.00

B

1

- -

- -

- -

- -

72,27,58,880.00

2

- -

- -

- -

14,22,86,397.00

11,58,303.00

- -

14,34,44,700.00

(e) Short Term Loans & Advances

(f) Other Current Assets

Sub-total Current assets

(a) Current Investments

Non-Current Assets

(a) Fixed Assets

(b) Goodwill on consolidation

c) Other Current Liabilities

d) Short Term Provisions

(d) Deferred Tax assets (net)

Current Assets

Sub-total Current liabilities

Total Equity and Liabilities

ASSETS

(b) Inventories

(c ) Trade Receivables

(d) Cash & Bank Balance

(e) Long term loans and advances

(f) Other non-current assets

Sub-total Non-current assets

(c) Non current investments

a) Long Term Borrowing

b) Deferred Tax Liabilities (Net)

c) Other Long Term Liabilities

d) Long Term Provisions

Sub-total-Non-current liabilities

b) Trade Payables

Share application money pending allotment

Minority Interest

Non-Current Liabilities

b) Reserves & Surplus

c) Money received against share warrants

Sub-total-shareholders' funds

Current Liabilities

a) Short Term Borrowings

Statement of Assets and Liabilities

PARTICULARS

EQUITY AND LIABILITIES

Shareholders' Fund

a) Share Capital

4,81,88,440.00Total - Assets 86,62,03,580.00

13,36,359.00

(3,87,99,819.00)

4,05,50,000.00

43,04,80,581.00 2,19,67,164.00

29,22,78,299.00 2,47,47,529.00

4,67,14,693.00

1,37,388.00

14,73,747.00

71



Annexure- IX to SEBI (LODR), 2015

93,88,621.00

Sd/-

(ANUP AGARWAL)


Date : 21.04.2016

Place: RAIPUR

Sd/-

Sd/-


DIN: 07005297

(DR.R.S. JHA)

DIRECTOR

DIN: 06664375


(A.P. PANDA)


CHAIRMAN



Sd/-


To,

The Board of Directors,

Chhattisgarh East-West Railway Limited.

We, A.S. Babu, Chief Executive Officer and Anup Agarwal, Chief Financial Officer, responsible for the

finance function certify that:

We have reviewed Financial Statements and the Cash Flow Statements for the quarter ended

31st March,2016 and that to the best of our knowledge and belief :

These statements do not contain any materially untrue statement or omit any material

fact or contain statements that might be misleading;

These statements together present a true any fair view of the company’s affairs and are

in compliance with existing accounting standards, applicable laws and regulations.

To the best of our knowledge and belief, no transactions entered into by the company during

the quarter ended 31st March, 2016 are fraudulent, illegal or violative of the company’s code of

conduct.

We accept responsibility for establishing and maintaining internal controls for financial

reporting and we have evaluated the effectiveness of internal control system of the company

pertaining to financial reporting and we have disclosed to the audit, deficiencies in the design

or operation of such internal controls, if any, of which they are aware and the steps they have

taken or propose to take to rectify these deficiencies.

We have indicated to the auditors that:

there has not been any significant changes in internal control over financial reporting

during the year under reference;

there has not been any significant changes in accounting policies during the year; and

We are not aware of any instance of significant fraud with involvement therein of the

management or an employee having a significant role in the company’s internal control

system over financial reporting.

CEO AND CFO CERTIFICATION

72



Sd/-

(Anup Agarwal)

CHIEF FINANCIAL OFFICERDate : 21.04.2016

Sd/-

(A.S. Babu)

CHIEF EXECUTIVE OFFICER

Review Meeting by Secretary (Coal) and Chief Secretary,

Govt. of Chhattishgarh at Mantralaya on 12-06-2015

CHHATTISGARH�EAST-WEST�RAILWAY�LIMITED

(A�Subsidiary�of�SECL)

THIRD�ANNUAL�REPORT�2015-16

Documents

Railway Book Design East and West Railway 2016