Notes to Accounts of Container Corporation of India Ltd.
Mar 31, 2023
12.1 Credit risk management
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. At the inception of a service contract, the Company collects the predetermined expected dues in advance. The balance of trade receivables represents the additional amounts charged to the customers over and above the amount already collected towards the expected dues in advance. For the recovery of balance contractual payments, the Company has a legal right to auction the material of the customers and recover the dues in terms of the provisions contained in Customs Act, 1962. Thus the Company has limited exposure to credit risk.
12.2 Credit risk concentration
The concentration of credit risk is limited due to the fact that the customer base is large and unrelated. Customers represent more than 5% of the total balance of trade receivables comprise of the following:
1. M/s Western Carriers Pvt Ltd.
2 M/s Ultra Tech Cement Ltd
3. M/s Hapag Lloyd India Pvt Ltd.
4. M/s Maersk Line India Pvt Ltd.
5. M/s Indian Farmers Fertiliser Cooperative
6. M/s Food Corporation of India
12.3 Allowance for expected credit loss
The Company has used a practical expedient by way for computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows.
If the dividend has not been paid or claimed within 30 days from the date of its declaration, the company is required to transfer the total amount of the dividend which remain unpaid or unclaimed, to a special account to be opened by the company in a scheduled bank to be called "Unpaid Dividend Account". The unclaimed dividend lying with company is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by the Central Government after a period of seven years from the date of transfer of such amount to unpaid dividend account
An amount of ? 2,96,673(As at March 31, 2022: ? 58,141) has been deposited timely in the Investor Education & Protection Fund.
Bank balances held as margin money or as security against:* Guarantees
Guarantee given in respect of various contracts/tenders submitted with the respective parties.
Letter of credit is given for the payment to be made against Model concession agreement for TMS (Terminal Management System) with Northern Railways.
16.1 From 1st April 2020, Indian Railways has changed its Land License fee policy, due to which some of the Terminals were rendered unviable, which were handed over to Indian Railway along with un-amortized fixed assets available on them. The company has reduced its fixed Assets (Buildings, Roads & Pavements, electrical fittings and Railway Sidings) amounting to ? 77.41 crore in FY 2020-21 and the same has been shown as recoverable from Indian Railway. Further, pending confirmation of the amount payable by Railways on this account the company has also provided the same as doubtful recovery from Indian Railway.
17.1 Registration fees includes fee paid for running of container trains, registrations of Private Freight Terminals(PFT), etc.
17.2 CONCOR had recognized during the financial year 2015-16 to 2018-19 an amount totalling to ^1044.03 crores as the income on account of benefit available under Service Export from India Scheme (SEIS). The availability of this benefit to CONCOR was also confirmed through legal opinions. In FY-2019-20 Directorate General of Foreign Trade (DGFT), disallowed ? 861.05 crores of claim for SEIS by stating that services towards customs transit of foreign liners sealed containers by rail transport placed under customs control to/from ICDs are not eligible for SEIS, for which provision was made by the company and it also filed appeal against the same at the appropriate level.
(ii) Rights, preferences and restriction attached to shares
The Company has one class of equity shares having a par value of ? 5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
(v) Aggregate number and class of shares allotted as fully paid up by way of bonus shares (during 5 years immediately preceding March 31, 2023):
4,87,43,548 equity shares were issued on April 10, 2017 as fully paid up Bonus Shares, which were issued in the ratio of 1:4 (one bonus equity share for four equity shares) by capitalising ? 48.74 crores from the reserves and surplus of the company.
12,18,58,870 equity shares were issued on February 7, 2019 as fully paid Bonus shares, which were issued in the ratio of 1:4 (one bonus share for every four shares) by capitalising ? 60.93 crores from the reserve and surplus of the company.
*As per CONCOR House Building Advance Rules, CONCOR is providing House Building Advance (HBA) facility to all regular employees of the Corporation, who on the date of submitting application for advance have rendered not less than three yearsâ continuous services. As per earlier HBA rules, simple interest @ 5% per annum on the loan amount up to ? 5.5 lakhs & interest @ 7.5% per annum on loans beyond ? 5.5 lakhs. Rebate was provided âin case of employees superannuating from CONCOR services or die in harness or become medically incapacitated for reasons not connected with intemperate habits or putting 10 years of minimum regular service from the date of availed of advance, a rebate @ 50% in the interest rates was allowedâ. During the year, the company has changed its policy and decided that interest @ 3 % will be charged on HBA''s or where the HBA amount/interest is outstanding as on date or the rebate for the loan is yet to be availed. Resultantly HBA interest was recalculated from date of disbursement of loan & benefit of the same was passed on to employee amounting to ? 11.35 crores. Rebate on HBA amounting to ? 0.50 crores is for F.Y 2022- 23 & ? 10.85 crores for previous years. Hence, in current year i.e F.Y. 2022-23 âInterest income earned on Financial assets carried at amortised costâ on loans given to employees is ?(3.36) crores.
**Miscellaneous Income includes ? 46.87 crore received from Indian Farmers Fertiliser Cooperative (IFFCO) towards development of an area of 35.5 Acres exclusively dedicated to IFFCO for handling and warehousing of IFFCO cargo rakes at MMLP Paradip (Previous Year: ? 21.07 crore).
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ?6.60 crore (increase by ?7.40 crore) (as at March 31, 2022: decrease by ? 8.27 crore (increase by ?8.97 crore)).
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by ? 1.25 crore (decrease by ?1.21 crore) (as at March 31, 2022: increase by ? 1.21 crores (decrease by ? 1.27 crores))
The estimated term of the benefit obligations in case of gratuity is 9.10 years( As at March 31, 2022: 9.98 years )
The company expects to contribute ? 6.61 crore to its gratuity plan in the next financial year.
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ? 5.87 crore (increase by ?6.44crore) (as at March 31, 2022 decrease by ? 6.96 crore (increase by ? 7.85crore))
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by ? 6.59 crore (decrease by ? 5.93 crore) (as at March 31, 2022: increase by ? 7.27 crore (decrease by ? 6.75 crores))
The estimated term of the benefit obligations in case of Leave Encashment is 9.10 years( As at March 31, 2022: 9.98 years )
⢠If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ? 10.01 crore (increase by ? 12.98 crore) (as at March 31, 2022: decrease by ? 16.75 crore (increase by ? 18.95 crore)).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There has been no change in the process used by the Company to manage its risks from prior periods.
Services from which reportable segments derive their revenues
The Segment reporting disclosed by the Company in this section is presented in accordance with the disclosures requirements of Ind AS 108 "Operating Segment".
Information reported to the chief operating decision maker(CODM) for the purposes of resource allocation and assessment of segment performance focuses on the divisions operated in the company. There are two major operating divisions- EXIM and Domestic, which are organized on All India basis. The information is further analysed based on the different classes of customers.Both EXIM and Domestic divisions of the company are engaged in handling, transportation & warehousing activities. The Company has not aggregated any operating segments for presentation purposes.
As at March 31, 2023, the operating segment of the Company are as under :
(a) The Company is organised into two major operating divisions- EXIM and Domestic. The divisions are the basis on which the Company reports its primary segment information.Segment revenue and expenses directly attributable to EXIM and Domestic segments are allocated to the two segments. Joint revenue and expenses have been allocated on a reasonable basis. Segment assets include all operating assets used by a segment and consist principally of inventories, sundry debtors, cash and bank balances, loans & advances, other current assets and fixed assets net of provisions. Similarly, segment liabilities include all operating liabilities and consist principally of sundry creditors, advance/deposits from customers, other liabilities and provisions. Segment assets and liabilities do not, however, include provisions for taxes. Joint assets & liabilities have been allocated to segments on a reasonable basis.
(b) As the operations of the Company are presently confined to the geographical territories of India, there are no reportable geographical segments.
Sitting fees paid to nominated/independent directors for the period ended March 2023 is ? 0.30 crore ( previous period :? 0.18 crore)
41.3. Disclosure in respect of Government Controlled Entities
41.3.1. Name of Government controlled entities and description of relationship wherein significant amount of transaction carried out:
*The Management has assessed the above claims and recognized a provision of ? 0.24 crore (PY: Nil) based on probability of outflow of resources embodying economic benefits and estimated ? 748.71 crore (PY: ? 827.48 crore) as the amount of contingent liability i.e. amounts for which Company may be held contingently liable. In respect of such estimated contingent claims either outflow of resources embodying economic benefits is not probable or a reliable estimate of the amount required for settling the obligation cannot be made. In respect of the rest of the claims/obligations, possibility of any outflow in settlement is considered as remote.
e. Contingent liabilities are disclosed to the extent of claims received and include an amount of ^30.53 crore ( 2021-22 ? 23.26 crore ), which may be reimbursable to the company. Any further interest demand on the basic claim is not considered where legal cases are pending, as the claim itself is not certain. No provision has been made for the contingent liabilities stated above, as on the basis of information available, careful evaluation of facts and past experience of legal aspects of the matters involved, it is not probable that an outflow of future economic benefits will take place.
f. A demand of ? 61.43 crore received from SDMC towards property tax of ICD/Tughlakabad whereas as per the opinion of Advocate no provision of property tax was being made in the books earlier and no demand were ever received in this regard. Out of ? 61.43 crore an amount of ? 21.00 crore (2022-23 : ?8.74 crore , 2020-21 : ?10.76 crore & 2019-20 :?1.50 crore) has been deposited with SDMC towards service charge as applicable on other PSU i.e M/s DMRC . Stay order has been granted by H''nable Delhi High Court & Final Order is awaited. ? 40.43 crore has been included in the contingent liability.
g. Disallowance of SFIS Scrips For AY 2013-14 was quashed by Honâble ITAT/Delhi and Department has filed appeal against the orders with Hon''ble High Court/Delhi and the same is pending with Hon''ble High Court/Delhi.
Further, Disallowance of SFIS Scrips for the AY 2015-16 was allowed partially by CIT(A) & the company filed appeal against these orders with Hon''ble ITAT/Delhi. The same was fully allowed by ITAT/Delhi in favour of CONCOR in current FY.
(i) âThe company entered into contract for supply of 1320 wagons by Hindustan engineering and Industries (HEI). After the supply of 1050 wagons, the contract was terminated during FY 2004-05, for non-fulfillment of obligation on the part of HEI. The company invoked the bank guarantee of ? 5.99 crore for refund of unadjusted advance and ? 7.37 crores towards performance guarantee for non fulfillment of terms of contract on the part of HEI. The matter was referred to an Arbitration Tribunal comprising three members, which has given majority award amounting to ? 39.58 Crores and interest @ 15% from date 22.05.2005 to 13.11.2013 amounting to ? 50.37 crore, totalling to ? 89.95 Crore 18% interest p.a. from the date of award to the date of payment in favour of M/s Hindustan Engineering Industries on 13.11.2013. Minority award by Co-Arbitrator has been given amounting to ? 14.61 crore in favour of the company. The majority award given in favour of HEI has been challanged by the company under section 34 of Arbitration and Concilliation Act, 1996 in the High Court of Delhi at New Delhi on dated 07.03.2014. Last hearng in this case was was held on 03.03.2023 & next Hearing is schedule for 06.07.2023.
(j) The Company has executed "Custodian cum Carrier Bonds" of ? 26,588.19 crore (Previous year: ? 26,253.83 crore ) in favour of Customs Department under the Customs Act, 1962. These bonds are of continuing nature, for which claims may be lodged by the Custom Authorities. Claims lodged during the year Nil (previous year: NIL).
(k) No further provision is considered necessary in respect of these matters as the company expects favourable outcome. It is not possible for the company to estimate the timing of further cash outflows, if any, in respect of these matters.
(a) During the year, the company realised ? 41.84 crore (previous year ? 64.04 crore) (net of auction expenses) from auction of unclaimed containers. Out of the amount realized, ? 9.17 crore ( previous year ? 17.66 crore) is paid/payable as custom duty, ? 32.13 crore ( previous year ? 44.54 crore) has been recognised as income and the balance of ? 0.54 crore ( previous year ? 1.84 crore) has been shown under Current Liabilities.
(b) Current liabilities include ? Nil crore (As at March 31 2022 ? Nil crore) towards unutilised capital grant received for acquisition of specific fixed assets in CONCOR/business arrangements. ? Nil crore has been recognised in the Statement of Profit and Loss for the year ended March 31, 2023 (previous year: ? Nil crore).
(c) Current liabilities include ? 1.82 crore (As at March 31 2022 ? 1.82 crore ) towards unutilised revenue grant received from National Horticulture Board for offsetting the freight for the Horticulture Projects.
(d) Out of the capital grant of ? 56.12 crore (previous year: ? 60.90 crore) , an amount of ? 4.78 crore (previous year: ? 4.78 crore) has been recognised in the Statement of Profit and Loss and the balance of ? 51.34 crore ( previous year: ? 56.12 crore) is shown under other current liabilities.
Works carried out by Railways/its units for the company are accounted for on the basis of correspondence /estimates/advice etc.
India Gateway Terminal (P) Ltd. (IGTPL) is a joint venture of CONCOR with Hindustan Ports Pvt. Ltd & others for setting up and managing of container terminal at Cochin. Though CONCORâs share in the accumulated losses (as per unaudited financial statements for FY 2022-23) of this JV are as at ? 54.55 crores& does not exceeds its investment of ? 54.60 crores as on 31st March 2023, no provision for diminution in the value of investment has been made, as with the managementâs consistent review and implementation of appropriate business strategy, the company has already made a turnaround. The same is clearly established from the unaudited financial statements of IGTPL for FY 2022-23.
Management has also tested this investment for impairment in accordance with the conditions laid own under IND AS-36 âImpairment of Assetsâ. As per the impairment testing carried out by the management, it has been established that the Value in Use i.e., the present value of future expected cash flows that will accrue from the improving/enhancing of its assetâs performance exceed the carrying value of investment. IND AS-36 states that impairment needs to be provided if and only if the carrying value of investments exceeds its value in use or fair value.
(a) Fresh & Healthy Enterprises Limited (FHEL), is a wholly owned subsidiary of the company. The carrying amount of investment in FHEL as on 31.03.2023 is ? 204.03 crores in the books of the company. As per IND AS 36 âImpairment of Assetsâ, an entity shall assess through external and internal sources of information that whether there is any indication that an asset may be impaired. There has been improvement in the operations of the company during the year. Further, the management of the company has given detailed plan for future working of
the company and there is no doubt on Going Concern of the company affairs and hence no impairment, as required under Ind AS 36, has been done during FY 2022-23 by the company.
(b) CONCOR Last Mile Logistics Limited (CLMLL), a wholly owned subsidiary of the company was struck off the register of companies by ROC, Delhi vide its notice of striking off and dissolution dated 02.03.2022. Considering the same, company''s investment in CLMLL was written off in previous year.
(c) CONCOR Air Limited (CAL) is a wholly owned subsidiary of the company. The carrying amount of company''s investment in CAL as on 31.03.2023 is ? 36.65 crores in the books of the company. However, recoverable value of assets of CAL as on 31.03.2023 as per external valuation report is ? 35.40 crore. Accordingly, the company has provided for an amount of ? 1.25 crore as impairment of investment in CAL and the same has been recognised as exceptional item in statement of profit & loss.
(a) In FY 2022-23, an amount of Rs. 19.57 crore (In FY 2021-22 Rs 15.17 crs.) has been utilized on various social activities undertaken including development of aspirational districts adopted by CONCOR by taking up healthcare activities in four districts i.e. Shravasti, Chandauli, Asifabad and Visakhapatnam under CONCOR CSR activities. Apart from above activities in aspirational districts, CONCOR has undertaken various other activities as per its CSR policy and Companies Act 2013. Some of the major projects are related to creating infrastructure for schools and healthcare centre, procurement of medical equipmentâs, organisation of health camps, sport facilities upgradation, construction of public toilets, environment activities, installation of solar lights, contribution in Armed Forces Flag Day Fund and Clean Ganga Fund etc.
(v) reason for shortfall,
Some amounts allocated for spending towards CSR could not be utilized during the year, mainly due to not completion of project on time by implementing agencies with whom CONCOR has signed MOU due to various reasons including non-availability of men & material in respect of construction works as well as shortage of required equipments/ goods which are to be supplied by implementing agencies to beneficiaries, etc.
(vi) nature of CSR activities
Company identified the areas of CSR activity as per provisions of schedule VII of Companies Act 2013, which include health & medical care, sanitation, education/literacy enhancement, community development, rural development, environment protection, conservation of natural resources, and infrastructure development.
(vii) No transactions with related parties, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard.
(viii) No provision is made with respect to a liability incurred by entering into a contractual obligation.
Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Details of Benami Property held :-
The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988. and no proceedings have been initiated or pending against the company under the said Act.
The Company does not have any borrowings outstanding as on 31.03.2023 and has not borrowed any funds from banks or financial institutions on the basis of security of current assets during Financial Year 2022-23. Considering the same, the company has not been declared as wilful defaulter by any bank or financial Institution or other lender and no charges or satisfaction are yet to be registered with ROC beyond the statutory period.
Relationship with Struck off Companies:-
The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
The company has complied with provision related to the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Further, there were no previously unrecorded income and related assets which were required to be properly recorded in the books of account during the year.
a) Balances of Sundry Debtors, Sundry Creditors and advances to other parties including Railways shown in financial statements are subject to confirmation/reconcilation. In the opinion of the management, there shall not be material liability.
b) Unless otherwise stated, the figures are in rupees crore. Previous yearâs figures have been restated, regrouped and rearranged, wherever considered necessary.
Approval of Financial statements
The financial statements were approved for issue by the Board of Directors in its meeting held on 18th May, 2023.
Mar 31, 2021
* Others includes other capital expenditure [ Refer note no. 43(b)]
2.1 Gross Block of Freehold land include assets valuing ?42.94 crore ( As at March 31 ,2020 : ? 31.21 crore ) in respect of which sale/lease deeds are yet to be executed.
2.2 Gross Block of Leasehold land (ROU assets ) include assets valuing ?580.94 crore (As at March 31 ,2020 : ? 163.97 crore,) in respect of which sale/lease deeds are yet to be executed.
2.3 Gross Block of Buildings include assets valuing ?3.68 crore (As at March 31, 2020: ?3.68 crore ) in respect of which sale/lease deeds are yet to be executed.
2.4 Gross Block of Railway Sidings include assets valuing H4.45 crore (As at March 31, 2020: ? 14.45 crore) in respect of which sale/lease deeds are yet to be executed.
2.5 Gross Block of Leasehold land, Buildings, Plant & Machinery & Vehicles includes ROU assets valuing ^1013.60 crore, ?59.26 crore , U54.13 crore & ?2.34 crore respectively ( As at March 31, 2020: ? 694.27 crore, ? 57.71 crore , ? 158.16 crore & ? 2.63 crore respectively).
2.6 The Company had built its Sabarmati terminal on land leased by Indian Railways (IR). As per lease arrangement & order of IR, this terminal has been vacated and land along with assets (movable/immovable) created by the Company at such terminal has been handed over to IR on ''as is where is basis''. IR has handed over the said land to National High Speed Rail Corporation (NHSRC). The Company, IR and NHSRC have agreed that NHSRC will replicate the structure of erstwhile Sabarmati Terminal at CONCOR''s Khodiyar Terminal for CONCOR. Accordingly, NHSRC has replicated assets having gross block of ?26.13 crore (Building: ?22.15 crore, Furniture & Fixtures: ?3 .98 crore & Railway Siding: ? Nil crore) during the current financial year and ?3 1.54 crore (Building: ?24 crore, Furniture & Fixtures: ?3 crore & Railway Siding: ?4.54 crore) during the previous financial year at Khodiyar Terminal, which is to be depreciated as per Company''s accounting policy for Property, Plant & Equipment.
2.7 The above Assets( Net block ) includes ?1.95 crore on account of assets retired from Active use and not held for sale.
2.8 Contractual Commitments for acquisition of property, plant and equipment are ?913.21 crore ( As at March 31, 2020: ? 1299.89)
4.1 Significant intangible assets
A primary component of CONCOR''s overall business strategy has been the development of an advanced information system. CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle Financials-ERP,CCLS (Container and Cargo Logistic System) for electronic filing of commercial documents and others, which are based on Centralized architecture deployed through Citrix environment and running over VSAT based hybrid network.
* Prepayment of leasehold land include assets valuing ? 0.01 crore( As at March 31, 2020 ? 0.01 crore) in respect of which lease deeds are yet to be executed.
**Non current portion of prepaid expenses comprising of ^2,76,042 towards TMS Staff Cost paid to Eastern Railways for FY 2022-23, ? 1,84,200 towards Pollution Control License Fees paid to West Bengal Pollution Control Board for FY 2022-23 & FY 2023-24 and ? 76,993 towards Wifi AMC Expenses paid to Fasttech IT Solution for FY 2022-23 & FY 2023-24.
Stores and spares parts include items costing ? 5.65 crore (2019-20: ? 6.28 crore), which have not been consumed during last three years. This includes ? 0.12 crore (2019-20: ? 0.12 crore) identified as obsolete spares and provided for. The management expects to use the remaining items in the operations and hence has not provided any impact.
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. At the inception of a service contract, the Company collects the predetermined expected dues in advance. The balance of trade receivables represents the additional amounts charged to the customers over and above the amount already collected towards the expected dues in advance. For the recovery of balance contractual payments, the Company has a legal right to auction the material of the customers and recover the dues in terms of the provisions contained in Customs Act, 1962. Thus the Company has limited exposure to credit risk.
If the dividend has not been paid or claimed within 30 days from the date of its declaration, the company is required to transfer the total amount of the dividend which remain unpaid or unclaimed, to a special account to be opened by the company in a scheduled bank to be called "Unpaid Dividend Account". The unclaimed dividend lying with company is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by the Central Government after a period of seven years from the date of transfer of such amount to unpaid dividend account.
An amount of ? 1,25,898 ( As at March 31, 2020 :?1,19,844 ) has been deposited timely in the Investor Education & Protection Fund.
Bank balances held as margin money or as security against:* Guarantees
Guarantee given in respect of various contracts/tenders submitted with the respective parties.
Letter of credit is given for the payment to be made against Model concession agreement for TMS (Terminal Management System) with Northern Railways.
(v) Aggregate number and class of shares allotted as fully paid up by way of bonus shares (during 5 years immediately preceding March 31, 2021):
4,87,43,548 equity shares were issued on April 10, 2017 as fully paid up Bonus Shares, which were issued in the ratio of 1:4 (one bonus equity share for four equity shares) by capitalising ? 48.74 crores from the reserves and surplus of the company.
12,18,58,870 equity shares were issued on February 7, 2019 as fully paid Bonus shares, which were issued in the ration of 1:4 (one bonus share for every four shares). By capitalising ? 60.93 crores from the reserve and surplus of the company.
The company has allotted 12,18,58,870 bonus equity shares of ?5 each to the shareholders on February 7, 2019. These bonus shares were issued in the ratio of 1:4 (one bonus equity share for four equity shares) by capitalising ^60.93 crores from the reserves and surplus of the company.
The company has allotted 48,743,548 bonus equity shares of ?10 each to the shareholders on April 10, 2017. These bonus shares were issued in the ratio of 1:4 (one bonus equity share for four equity shares) by capitalising ^48.74 crores from the reserves and surplus of the company.
(ii) Export Incentive includes ^19.38 crore (2019-20: ^14.82 crore) towards Grants under SFIS and of ?Nil crore towards EPCG (2019-20 ?Nil crore), which have been recognised at the time of utilisation of these scripts towards procurement of Assets and Inventories. It also includes an amount of ?Nil crore (2019-20: ?Nil crore) towards Grants under SEIS, which have been recognised during the year being the period in which the right to receive the same is established.
(iii) Other operating income includes ?6.01 crore ( 2019-20: ?9.30 crore) towards consultancy income, which has been received from M/s Gateway Terminals India Private Limited.
(iv) Other operating income includes following income which exceeds one per cent of the revenue from operations or ^10,00,000 whichever is higher:-
*Vide letter no. F.No.01/61/180/351/AM16/PC-3/786, dated 26th September 2019 received from Directorate General of Foreign Trade (DGFT), the Company has been informed that services towards customs transit of foreign liners sealed containers by rail transport placed under customs control to/from ICDs are not eligible for SEIS. Consequently, an estimated amount of ^861.05 crores for ineligible SEIS benefit has been provided for in the FY 2019-20.
**During the current year, Indian Railways has changed its Land Licence fee policy, due to which some of the Terminals were rendered unviable, which were handed over to Indian Railway along with un-amortized fixed assets available on them.The company has reduced its fixed Assets (Buildings, Roads & Pavements, electrical fittings and Railway Sidings) amounting to ?77.41 crore and the same has been shown as recoverable from Indian Railway. Further, pending confirmation of the amount payable by Railways on this account the company has also provided the same as doubtful recovery from Indian Railway.
The Company opted to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act, 2019 and has taken 25.168% rate of Corporate Tax in its accounts. Accordingly, the Company has recognized provision for income tax for the quarter/ period ended 31st March 2021 and re-measured its deferred tax assets/ liabilities on the basis of the above option.
The return on the investment is the nominal yield available on the format of investment as applicable to Approved Gratuity Fund under Rule 101 of Income Tax Act
1961.
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses
below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.
⢠If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ?7.53 crore (increase by ?8.21 crore) (as at March 31, 2020: decrease by ?6.72 crore (increase by ?7.68 crore).
⢠If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by ?1.85 crore (decrease by ? 1.69 crore) (as at March 31, 2020: increase by ?1.38 crores (decrease by ? 1.17 crores)
The estimated term of the benefit obligations in case of gratuity is 10.02 years (As at March 31, 2020: 10.07 years)
The company expects to contribute ?23.07 crore to its gratuity plan in the next financial year.
⢠If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ?5.56 crore (increase by ?6.28 crore) (as at March 31, 2020 decrease by ?2.81 crore (increase by ?3.24 crore)
⢠If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by ?6.03 crore (decrease by ?5.39 crore) (as at March 31, 2020: increase by ?3.26 crore (decrease by ?2.88 crores)
The estimated term of the benefit obligations in case of Leave Encashment is 10.02 years ( As at March 31, 2020:10.49 years )
⢠If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ? 15.66 crore (increase by ? 18.42 crore) (as at March 31, 2020: decrease by ?0.51 crore (increase by ?0.59 crore).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There has been no change in the process used by the Company to manage its risks from prior periods.
Services from which reportable segments derive their revenues
The Segment reporting disclosed by the Company in this section is presented in accordance with the disclosures requirements of Ind AS 108 "Operating Segment".
Information reported to the chief operating decision maker(CODM) for the purposes of resource allocation and assessment of segment performance focuses on the divisions operated in the company. There are two major operating divisions- EXIM and Domestic, which are organized on All India basis. The information is further analysed based on the different classes of customers.Both EXIM and Domestic divisions of the company are engaged in handling, transportation & warehousing activities. The Company has not aggregated any operating segments for presentation purposes.
As at March 31, 2021, the operating segment of the Company are as under :
The Company is organised into two major operating divisions- EXIM and Domestic. The divisions are the basis on which the Company reports its primary segment information.Segment revenue and expenses directly attributable to EXIM and Domestic segments are allocated to the two segments. Joint revenue and expenses have been allocated on a reasonable basis. Segment assets include all operating assets used by a segment and consist principally of inventories, sundry debtors, cash and bank balances, loans & advances, other current assets and fixed assets net of provisions. Similarly, segment liabilities include all operating liabilities and consist principally of sundry creditors, advance/deposits from customers, other liabilities and provisions. Segment assets and liabilities do not, however, include provisions for taxes. Joint assets & liabilities have been allocated to segments on a reasonable basis.
As the operations of the Company are presently confined to the geographical territories of India, there are no reportable geographical segments.
As a lessee
The Company has entered into Operating leases arrangements for Land, Vehicles, Containers, Plant & Machinery, Railway Wagons/Rakes, Office Premises, Accommodation Provided to Staffs etc. with different lease terms.
The Company has accounted lease payment associates with short term leases (having lease term of 12 months or less) and leases of low value assets (less than ?3.5 lakhs) as an expense on either a straight-line basis over the lease term or another systematic basis.
The Company has entered into agreement with Indian Railways, for utilization of its land for setting up of Company''s Terminals and carrying out Company''s operations through such terminals.
Till Financial year 2019-20, the consideration/Land License Fee (LLF) payable for utilizing lands of Indian Railways was in direct correlation to the numbers of containers (TEUs) handled on such lands and the LLF rate determined by Indian Railways from time to time. Accordingly, the Company did not recognized Right of Use (ROU) Asset and Lease Liability for lands licensed by Indian Railways.
In FY 2020-21, Ministry of Railways, Government of India vide its order no.2015/LML-II/13/4 dated 19.03.2020, had communicated that the LLF applicable on the Railway land leased to CONCOR shall now be charged w.e.f. 01.04.2020 as per extant policy of Railways i.e. @6% of the value of land, which will be further increased 7% annually. However, in some cases there is inconsistency in the assessment of area and value of licensed lands between the company and Indian Railways. Further, Ministry of Railways vide letter no.2020/LML-II/13/33 dated 27.01.2021 has also considered handing over of terminals to the company on long term lease against lump sum payment of lease charges.
Accordingly, the quantification of company''s potential exposure for land licensed by Indian Railways in future is not possible. Therefore, the Company has not recognized Right of Use (ROU) Asset and Lease Liability for lands licensed by Indian Railways.
The company manages it''s capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.
The capital structure of the Company consists of total equity. The Company is not subject to any externally imposed capital requirements.
The Board of Directors of the Company has approved sub-division of one equity share of par value of ? 10/-each into two equity shares of ? 5/- each in its meeting held on 30.04.2018. Consequent upon that, after taking approval from the shareholders through postal ballot, paid up share capital of the company was ? 243.72 crore comprising of 487435478 equity shares of ? 5/- each. Subsequently, the Company has also alloted bonus shares to the shareholders on 07.02.2019 after seeking the approval of the shareholders in which bonus shares were issued in the ratio of 1:4 (one bonus share for every four shares). As a result, the paid up share capital of the company increased to ? 304.65 crore comprising of 609294348 equity shares of ? 5/- each. Accordingly, as per requirement of Ind AS 33, the basic and diluted earning per share for all the periods presented has been computed on the basis of new number of shares i.e., 609294348 equity shares of ? 5/- each.
(iii) Financial risk management objectives
The Companyâs corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.
The Companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates.
Market risk exposures are measured using sensitivity analysis.
There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.
(v) Foreign Currency risk management
The company is not subject to significant transactions denominated in foreign currencies. The company does not have earnings in foreign currency but the foreign currency outgo made during the year is ^201.89 crore (201920 : ^138.28 crore) against which the net gain/(loss) on foreign currency transactions recorded in the books is insignificant .Consequently, exposures to exchange rate fluctuations are limited.
(vi) Interest rate risk management
The Company has not availed borrowings, hence is not exposed to interest rate risk.
The company is not exposed to price risk as its investments in debt based marketable securities are held in a business model to collect contractual amounts at maturity and are carried at amortised costs. Thus the change in fair value of these investments does not impact the Company.
These investments are tradable in market. A 10% increase / decrease in the market price of these investments as at March 31 2021 will lead to ^81.75 crore (As at March 31, 2020: ^76.34 crores) increase / decrease in the fair value of these investment.
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company has limited exposure to credit risk owing to the balance of trade receivables as explained in Note no. 12. Company''s bank balances and investments in marketable securities are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
The Company is exposed to credit risk in relation to financial guarantees given to banks on behalf of subsidiaries / joint venture companies. The Companyâs maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on as at March 31, 2021 is ^64.04 crore (As at March 31, 2020: ^70.52 crore)
(ix) Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
e. Contingent liabilities are disclosed to the extent of claims received and include an amount of ^42.91 crore (2019-20 ^49.96 crore), which may be reimbursable to the company. Any further interest demand on the basic claim is not considered where legal cases are pending, as the claim itself is not certain. No provision has been made for the contingent liabilities stated above, as on the basis of information available, careful evaluation of facts and past experience of legal aspects of the matters involved, it is not probable that an outflow of future economic benefits will take place.
f. (a) A demand of ^61.43 crore received from SDMC towards property tax of ICD/Tughlakabad whereas as per the opinion of Advocate no provision of property tax was being made in the books earlier and no demand were ever received in this regard. Out of ^61.43 crore an amount of ^10.76 crore (2019-20 ?1.50 crore) has been deposited with SDMC towards service charge as applicable on M/s DMRC. Stay order has been granted by Honâble Delhi High Court & Final Order is awaited. ?49.17 crore has been included in the contingent liability.
(f) (b) A total land of 89.35 acres for developing of Multimodal logistics park at Kakinada was taken on lease on 14.1.2016 from Director of Ports , Andhra Pradesh state (now it is known as AP Maritime Board)for a lease period of 60 years.
AP Maritime Board had raised a demand of ^10.54 lakhs which includes (a) land cess of ?1500/per acre/per annum and GST charges @ 18% and (b) Lease rent of ?1000/per acre/ per annum for the period from 14.06.2016 to 13.06.2020. However, CONCOR had only paid Lease rent charges amounting ?3.57 lakhs @ ?1000/per acre/
per annum for the period from 14.06.2016 to 13.06.2020 based on G.O.Ms letter dated 13.01.2016.
CONCOR vide letter dated 09.12.2019 informed to the Director of Ports, Andhra Pradesh state that CONCOR is ready to pay the land lease charges @ ^1000/- per acre per annum. However, there is no mention of land cess to be paid in addition to the land lease charges as per G.O. Ms No 1 dated 13.01.2016.
Accordingly, an amount of ?6.97 lakhs has been shown as contingent liability
g. As per assessment orders under section 143(3) of the Income Tax Act, 1961, the Assessing Officer (AO) disallowed certain claims of the company, mainly deduction under section 80IA in respect of Rail System for assessment years 2003-04 to AY 2007-08 & AY 2009-10 to AY 2015-16 and Inland Ports (ICDs/CFSs) for assessment years 2003-04 to AY 2015-16.
h. In appeal, deduction for Rail System for AY 2003-04 to AY 2005-06 & AY 2011-12 to AY 2015-16 has been allowed by CIT (A) & for AY 2006-07 to AY 2014-15 has been allowed by ITAT/Delhi in favour of CONCOR.
i. On the matter of deduction for Inland Ports, same has been allowed by the Honâble Supreme Court & Delhi High Court for AY 2003-04 to AY 2005-06 & AY 2007-08 to AY 2009-10, by ITAT-Delhi for AY 2006-07, AY 2010-11 to AY 2014-15.
j. Disallowance of SFIS Scrips For AY 2013-14 has been quashed by Honâble ITAT/Delhi and Department has filed appeal against the orders with Hon''ble High Court/Delhi. Further, Disallowance of SFIS Scrips for the AY 2015-16 has been allowed partially by CIT(A) & the company has filed appeal against these orders with Hon''ble ITAT/Delhi.
âThe company entered into contract for supply of 1320 wagons by Hindustan engineering and Industries (HEI). After the supply of 1050 wagons, the contract was terminated during FY 2004-05, for non-fulfillment of obligation on the part of HEI. The company invoked the bank guarantee of ? 5.99 crore for refund of unadjusted advance and ? 7.37 crores towards performance guarantee for non fulfillment of terms of contract on the part of HEI. The matter was referred to an Arbitration Tribunal comprising three members, which has given majority award amounting to ? 39.58 Crores and interest @ 15% from date 22.05.2005 to 13.11.2013 amounting to ? 50.37 crore, totalling to ? 89.95 Crore 18% interest p.a. from the date of award to the date of payment in favour of M/s Hindustan Engineering Industries on 13.11.2013. Minority award by Co-Arbitrator has been given amounting to ? 14.61 crore in favour of the company. The majority award given in favour of HEI has been challanged by the company under section 34 of Arbitration and Conciliation Act, 1996 in the High Court of Delhi at New Delhi on dated 07.03.2014. Last hearing in the matter was held on 16-03-2020 and next hearing which was schedule for 29-04-2021 has been postponed for 14.07.2021 due to Covid.
The Company has executed "Custodian cum Carrier Bonds" of ? 26296.33 crore (Previous year: ? 31309.12 crore ) in favour of Customs Department under the Customs Act, 1962. These bonds are of continuing nature, for which claims may be lodged by the Custom Authorities. Claims lodged during the year Nil (previous year: NIL).
No further provision is considered necessary in respect of these matters as the company expects favourable outcome. It is not possible for the company to estimate the timing of further cash outflows, if any, in respect of these matters.
During the year, the company realised ^44.63 crore (previous year ^27.84 crore) (net of auction expenses) from auction of unclaimed containers. Out of the amount realized, ^16.84 crore (previous year ?7.35 crore) is paid/payable as custom duty, ^27.27 crore (previous year ^16.58 crore) has been recognised as income and the balance of ?0.52 crore (previous year ?3.91 crore) has been shown under Current Liabilities.
(a) Current liabilities include ?Nil crore (As at March 31, 2020 ?Nil crore) towards unutilised capital grant received for acquisition of specific fixed assets in CONCOR/business arrangements. ?Nil crore has been recognised in the Statement of Profit and Loss for the year ended March 31, 2021 (previous year: ?0.07 crore).
(b) Current liabilities include ?1.82 crore (As at March 31 2020 ^1.82 crore) towards unutilised revenue grant received from National Horticulture Board for offsetting the freight for the Horticulture Projects.
(c) Out of the capital grant of ^65.27 crore (previous year: ^42.67 crore), an amount of ?4.37 crore (previous year: ?3.53 crore) has been recognised in the Statement of Profit and Loss and the balance of ^60.90 crore (previous year: ^39.14 crore) is shown under liabilities.
The company has not remitted any amount in foreign currency on account of dividend during the year.
Provisions relating to disclosure of information as required by Companies Act, 2013 in case of companies other than service companies are not applicable, as the company has no manufacturing, trading and financing activities.
Till the financial year 2019-20, CONCOR has been paying Land License Fee (LLF) to the Railways on the railway land leased to it on the basis of number of Twenty Foot equivalent units (TEUs) handled.
Ministry of Railways, Government of India vide its order no.2015/LML-II/13/4 dated 19.03.2020, had communicated that the LLF applicable on the Railway land leased to CONCOR shall now be charged w.e.f. 01.04.2020 as per extant policy of Railways i.e. @6% of the value of land, which will be further increased 7% annually.
Accordingly, as per the company assessment, an amount of ? 517.39 crore has been paid as Land License fee to Indian Railways in current financial year as per extant policy of Railways.
Works carried out by Railways/its units for the company are accounted for on the basis of correspondence /estimates/advice etc.
India Gateway Terminal (P) Ltd. (IGTPL) is a joint venture of CONCOR with Dubai Port International (DPI) for setting up and managing of container terminal at Cochin. Though CONCORâs share in the accumulated losses (as per unaudited financial statements for FY 2020-21) of this JV exceeds its investment of ? 54.60 crores as on 31st March 2021, no provision for diminution in the value of investment has been made, as with the managementâs consistent review and implementation of appropriate business strategy, the company has already made a turnaround. The same is clearly established from the unaudited financial statements of IGTPL for FY 2020-21. Management has also tested this investment for impairment in accordance with the conditions laid own under IND AS-36 âImpairment of Assetsâ. As per the impairment testing carried out by the management, it has been established that the Value in Use i.e., the present value of future expected cash flows that will accrue from the improving/enhancing of its assetâs performance exceed the carrying value of investment. IND AS-36 states that impairment needs to be provided if and only if the carrying value of investments exceeds its value in use or fair value.
(a) Fresh & Healthy Enterprises Limited (FHEL), is a wholly owned subsidiary of the company. The carrying amount of investment in FHEL as on 31.03.2021 is ^195.39 crores in the books of the company. As per IND AS 36 âImpairment of Assetsâ, an entity shall assess through external and internal sources of information that whether there is any indication that an asset may be impaired. The Company assessed that economic performance of M/s FHELwas not as per expectation and the subsidiary continued to incur losses. The reasons for such performance of M/s FHEL are attributed to the various factors such as Covid Pandemic, farmers agitation, poor apple crop which is one of the main segments of business etc. As the evidence was available from internal reporting that the asset may be impaired, an impairment testing was carried out by the company in accordance with IND AS 36 through an independent IBBI registered valuer. The impairment testing report of M/s FHEL as on 31.03.2021 has indicated that recoverable value of M/s FHEL as on 31.03.2021 is ^190.36 Crores against the carrying amount of ^195.39 crores. Therefore, an amount of ?5.03 Crores (Previous Year: ^20.58 Crores) has been recognized as impairment loss.
(b) CONCOR Last Mile Logistics Ltd (CLMLL), is a wholly owned subsidiary of the Company. The carrying amount of investment in CLMLL as on 31.03.2021 is ?1.00 crore in the books of the company. The object of the CLMLL was mainly to develop and manage Railways Good Sheds, which were to be handed over to it by the Indian Railways (IR). However, IR subsequently decided to invite open offers from the market for development and management of good sheds. The Board of CLMLL decided to wind up the company vide resolution dated 02.02.2021, as the very purpose of its setting up no longer exists. CLMLL has incurred ?0.92 crore towards incorporation and other expenses. The net worth of CLMLL as on 31.03.2021 is ?0.08 crore. Therefore, an amount of ?0.92 crore has been recognized as impairment loss.
CONCOR had recognized during the financial year 2015-16 to 2018-19 an amount totaling to ^1,044.03 crores as the income on account of benefit available under Service Export from India Scheme (SEIS). The availability of this benefit to CONCOR was also confirmed through legal opinions. In FY-2019-20 Directorate General of Foreign Trade (DGFT), disallowed ^861.05 crores of claim for SEIS by stating that services towards customs transit of foreign liners sealed containers by rail transport placed under customs control to/from ICDs are not eligible for SEIS, for which provision was made by the company and it also filed appeal against the same at the appropriate level. Further, an amount of ?9.15 crore (5%) had been provided for as estimated discount for monetization on the eligible amount of ^ 182.98 crore in FY 2019-20.The balance claim of SEIS amounting to ^ 182.98 crores for which scrips were issued to the company, have been monetized in Current Financial Year.
No income has been recognized on account of SEIS benefits in FY 2020-21 & 2019-20 as no notification has been issued by Govt. for the same.
In FY 2020-21, an amount of ^45.82 crore (In FY 2019-20- ^22.16 crore) has been utilized on various social activities undertaken including development of aspirational districts adopted by CONCOR by taking up educational and health activities in three districts i.e. Shravasti, Chandauli & Vishakhapatnam under CONCOR Corporate Social Responsibility (CSR). Apart from above activities in aspirational districts, CONCOR has undertaken various other activities as per its CSR policy and Companies Act 2013. Some of the major projects are related to creating infrastructure for schools, construction of hospital buildings, preventive health check-up including cancer detection camps, cochlear implants surgeries, distribution of assisting devices to divangjans, sports facilities upgradation, construction of community toilets, skill development trainings, contribution towards Armed Forces Flag Day Fund and PM CARES FUND, etc.
The outbreak of Coronavirus (COVID-19) globally and in India has impacted businesses and economic activities in general. The spread of COVID-19, along with nationwide lockdown starting from 25th March 2020, has caused serious threat to human lives and resulted in reduction in global demand and disruption in supply chain, which have forced the businesses to restrict or close the operations in short term. During the lockdown period, as the company''s business is to provide logistics services, its operation continued mainly under the "Essential Services". The revenue of the Company and other consequential expenses during the period ended March 2021 decreased due to nationwide lockdown for COVID-19 and therefore not comparable with those for corresponding previous periods.
As regards, the recoverability of assets and financial resources, performance of contractual liability & obligations, ability to service the liabilities, the Company expects to fully recover the carrying amounts of the assets and comfortably discharge it obligations. The Company is positive on the long-term business outlook as well as its financial position. However, the Company is closely monitoring any material changes to future economic conditions.
(a) . Unless otherwise stated, the figures are in rupees crore. Previous yearâs figures have been restated, regrouped and rearranged, wherever considered necessary.
(b) . Balances of Sundry Debtors, Sundry Creditors and advances to other parties including Railways shown in financial statements are subject to confirmation/reconciliation.
Mar 31, 2018
1.1 Significant intangible assets
A primary component of CONCORâs overall business strategy has been the development of an advanced information system. CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle Financials-ERP.CCLS (Container and Cargo Logistic System) for electronic filing of commercial documents and others, which are based on Centralized architecture deployed through Citrix environment and running over VSAT based hybrid network.
The carrying amount of significant softwares material for the operations of the company is Rs.4.30 crore (as at March 31, 2017: Rs.2.34 crore ) will be fully amortized in 5 years as tabulated below:
2.1 Credit risk management
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. At the inception of a service contract, the Company collects the expected dues in advance. The balance of trade receivables represents the additional amounts charged to the customers over and above the amount already collected towards the expected dues in advance. For the recovery of balance contractual payments, the Company has a legal right to auction the material of the customers and recover the dues in terms of the provsions contained in Customs Act, 1962. Thus the Company has limited exposure to credit risk.
2.2 Credit risk concentration
The concentration of credit risk is limited due to the fact that the customer base is large and unrelated. Customers represent more than 5% of the total balance of trade receivables comprise of the following: Particulars
1. M/s Western Carrriers Pvt Ltd.
2. M/s TCI CONCOR Multimodal Solutions Pvt. Ltd.
3 M/s Ultra Tech Cement Ltd
4. M/s Continental Warehousing Corporation Navashava Ltd.
2.3 Allowance for expected credit loss
The Company has used a practical expedient by way for computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows.
Unclaimed dividend accounts
If the dividend has not been paid or claimed within 30 days from the date of its declaration,the company is required to transfer the total amount of the dividend which remain unpaid or unclaimed, to a special account to be opened by the company in a scheduled bank to be called âUnpaid Dividend Accountâ. The unclaimed dividend lying with company is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by the Central Government after a period of seven years from the date of transfer of such amount to unpaid dividend account
An amount of Rs.1,44,078(As at March 31,2017: Rs.2,68,078) has been deposited timely in the Investor Education & Protection Fund.
Bank balances held as margin money or as security against:
âGuarantees
Out of this, Guarantee of Rs.6.00 crore is given for setting up of common infrastructure projects (Refrigerated Park facility at ICD-Dadri)
âLetter of credit
Letter of credit is given for the payment to be made against Model concession agreement for TMS (Terminal Management System) with Northern Railways.
3.1 Registration fees paid for running of container trains is amortized in twenty (20) years so as to correspond with the validity period of licence under the respective agreements.
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. As the general reserve Is created by a transfer from one component of equity to another and Is not an item of other comprehensive income, Items included In the general reserve will not be reclassified subsequently to profit or loss.
The Company has paid an interim dividend of Rs.9.60/- on per equity share of Rs.10/- each (2016-17: Rs.9.60) and proposed final dividend of âi7.50/-on per equity share of Rs.10/-each .(2016-17: Rs.7.50) for the year.
The Company pays its vendors immediately when the invoice is accounted and no interest during the year has been paid or is payable.(Refer Note no. 47 for disclosure made under terms of the Micro, Small and Medium Enterprises Development Act, 2006).
The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
Railway Board vide Letter No.2017/PL/52/4 dated 24.11.2017 has issued Presidential Directives under Article - 71 of Memorandum and Articles of Association, for implementation of Revised Pay Scales with effect from 01.01.2017 in respect of Board Level and below Board Level Executives and Non-Unionized Supervisors.
a) Employers Contribution to Provident Fund
Company pays fixed contribution to Provident Fund at predetermined rates to a separate trust, which invests the fund in permitted securities. The contribution to the fund for the period is recognized as expense and is charged to the profit & loss account. The obligation of the company is limited to such fixed contribution. However, the trust is required to pay a minimum rate of interest on contributions to the members as specified by Government. As per actuarial valuation such liability is NIL as at March 31, 2018 (as at March 31, 2017: NIL).
B. State Plans
During the year the Company has recognised the following amounts as employerâs contribution to state plans in the statement of profit and loss :-
C. Defined Benefit Plans and Other Long Term Benefits
a) Contribution to Gratuity Funds - Employeeâs Gratuity Fund.
The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is funded by the company and is managed by a separate Approved Trust. The liability for the same is recognized on the basis of actuarial valuation.
b) Leave Encashment/ Compensated Absence.
The company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves and medical leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.
c) Retirement Allowance
The company has formed a medical trust, which takes care of medical needs of its employees after their retirement. Their entitlement for reimbursement of medical expenses is regulated as per the policy. The liability for the same is recognized on the basis of actuarial valuation.
These plans typically expose the company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2018 by M/s Transvalue Consultants. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
Gratuity
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs.4.48 crore (increase by â .4.89 crore) (as at March 31, 2017: decrease by Rs.5.17 crore (increase by Rs.5.26 crore)).
- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs.3.16 crore (decrease by â.2.70 crore) (as at March 31, 2017: increase by Rs.4.15 crores (decrease by Rs.4.09 crores))
- Theestimated term of the benefit obligations in case of gratuity is 18.69 years( As at March 31, 2017:18.82 years )
The company expects to contribute Rs.16.19 crore to its gratuity plan in the next financial year.
Leave Encashment
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs.5.24 crore (increase by Rs.5.54 crore) (as at March 31, 2017: decrease by Rs.6.44 crore (increase by Rs.6.64 crore))
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs.4.43 crore (decrease by Rs.4.26 crore) (as at March 31, 2017: increase by Rs.5.38 crore (decrease by Rs.5.21 crores))
The estimated term of the benefit obligations in case of leave encashment is 18.69 years( As at March 31, 2017:18.82 years
Leave Travel Concession
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs.0.03 crore (increase by Rs.0.03 crore) (as at March 31, 2017: decrease by Rs.0.04 crore (increase by Rs.0.04 crore)
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs.0.02 crore (decrease by Rs.0.02 crores) (as at March 31, 2017: increase by Rs.0.03 crore (decrease by Rs.0.03 crores))
The estimated term of the benefit obligations in case of leave travel concession is 0.6 years( As at March 31, 2017: 1.05years )
Post retirement Benefits
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs.0.25 crore (increase by Rs.0.26 crore) (as at March 31, 2017: decrease by Rs.0.24 crore (increase by Rs.0.24 crore)).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Each year an Asset-Liability-Matching study is performed in which the consequences of the strategic investment policies are analysed in terms of risk-and-return profiles. It is ensured that the defined benefit obligation is backed up by assets to maintain an assurance that assets are sufficient within the next 12 months.
There has been no change in the process used by the Company to manage its risks from prior periods.
Impact of changes in accounting policies
There are no changes in the accounting policies which had impact on the amounts reported for earning per share
Note
The Board of Directors have alloted bonus shares to the shareholders on 10.04.2017 after seeking the approval of the shareholders in which bonus shares were issued in the ratio of 1:4 (one bonus share for every four shares). As a result, the paid up share capital of the company increased to Rs.243.72 crore comprising of 243717739 equity shares of Rs.10/- each. Accordingly, as per requirement of Ind AS 33, the basic and diluted earning per share for all the periods presented has been computed on the basis of new number of shares post bonus issue i.e. 243717739 equity shares of Rs.10/- each.
Services from which reportable segments derive their revenues
The Segment reporting disclosed by the Company in this section is presented in accordance with the disclosures requirements of Ind AS 108 âOperating Segmentâ.
Information reported to the chief operating decision maker(CODM) for the purposes of resource allocation and assessment of segment performance focuses on the divisions operated in the company. There are two major operating divisions- EXIM and Domestic, which are organized on All India basis. The information is further analysed based on the different classes of customers. Both EXIM and Domestic divisions of the company are engaged in handling, transportation & warehousing activities. The Company has not aggregated any operating segments for presentation purposes.
As at March 31, 2018, the operating segment of the Company are as under:-
The Company is organised into two major operating divisions- EXIM and Domestic. The divisions are the basis on which the Company reports its primary segment information. Segment revenue and expenses directly attributable to EXIM and Domestic segments are allocated to the two segments. Joint revenue and expenses have been allocated on a reasonable basis. Segment assets include all operating assets used by a segment and consist principally of inventories, sundry debtors, cash and bank balances, loans & advances, other current assets and fixed assets net of provisions. Similarly, segment liabilities include all operating liabilities and consist principally of sundry creditors, advance/deposits from customers, other liabilities and provisions. Segment assets and liabilities do not, however, include provisions for taxes. Joint assets & liabilities have been allocated to segments on a reasonable basis.
As the operations of the Company are presently confined to the geographical territories of India, there are no reportable geographical segments.
The accounting policies of the reportable segments are the same as the Companyâs accounting policies described in Note 1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directorsâ salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
Revenue and expenses directly identifiable to the segments have been allocated to the relatively primary reportable segments.
Segment revenue and expenses which are not directly identifiable to the primary reportable segments have been disclosed under unallocable, which primarily includes interest and other income and Corporate Expenses. Other income includes Rent income, dividend income and Interest Income. Corporate Expenses includes Employee staff benefit expense, Administrative expense and Depreciation expense of Corporate office.
For the purposes of monitoring segment performance and allocating resources between segments:
a)all assets are allocated to reportable segments other than investments and assets of corporate office; and
b) all liabilities are allocated to reportable segments other than share capital, other equity, deferred tax liabilities and other liabilities of corporate office. Un-allocated corporate liabilities include 7 9401.11 crore (feat March 31 2017: 78846.20 crore) on account of Shareholderâs funds.
a) As a lessee Leasing arrangements
The Company has entered into Operating leases arrangements for containers, office premises and accommodation provided to staffs with different lease terms.
(1) Capital management
The company manages ifs capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.
The capital structure of the Company consists of total equity. The Company is not subject to any externally imposed capital requirements.
In the month of February 2017, issuance of one bonus equity share for every four equity shares held was recommended by board for which approval of shareholders through postal ballet route was taken by the company. After the above approval of shareholders, the Board of Directors have allotted bonus shares on April 10, 2017 to the shareholders and as a result the paid up share capital of the company increased from Rs.194.97 crores to Rs.243.72 crores comprising of 24,37,17,739 equity shares Rs.10/- each.
(i) Gearing ratio
The Company has no outstanding debt as at the end of reporting period. Accordingly, the Company has nil gearing ratio as at March 31, 2018 and March 31, 2017 respectively.
(iii) Financial risk management objectives
The Companyâs corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.
(iv)Market Risk
The Companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates.
Market risk exposures are measured using sensitivity analysis.
There has been no change to the Companyâs exposure to market risks or the manner in which these risks are being managed and measured.
(v) Foreign Currency risk management
The company is not subject to significant transactions denominated in foreign currencies. The company does not have earnings in foreign currency but the foreign currency outgo made during the year is Rs.52.10 crore (2016-17: Rs.86.59 crore) against which the net gain/(loss) on foreign currency transactions recorded in the books is insignificant .Consequently, exposures to exchange rate fluctuations are limited.
(vi) Interest rate risk management
The Company has not availed borrowings, hence is not exposed to interest rate risk.
(vii) Other price risks
The company is not exposed to price risk as its investments in debt based marketable securities are held in a business model to collect contractual amounts at maturity and are carried at amortised costs. Thus the change in fair value of these investments does not impact the Company.
These investments are tradable in market. A10% increase / decrease in the market price of these investments as at March 31,2018 will lead to Rs.74.82 crores (As at March 31,2017: Rs.74.17 crore) increase / decrease in the fair value of these investment
(viii) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company .The Company has limited exposure to credit risk owing to the balance of trade receivables as explained in Note no. 11. Companyâs bank balances and investments in marketable securities are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
The Company is exposed to credit risk in relation to financial guarantees given to banks on behalf of subsidiaries / joint venture companies. The Companyâs maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on as at March 31,2018 is Rs.62.47 crore (As at March 31,2017 is Rs.81.71 crore)
(ix)Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31,2018:
Joint Ventures
1. Star Track Terminals Pvt. Ltd.
2. Albatross Inland Ports Pvt. Ltd.
3. Gateway Terminals India Pvt. Ltd.
4. Himalayan Terminals Pvt. Ltd. (Foreign Joint Venture)
5. India Gateway Terminal Pvt. Ltd.
6. TCI-CONCOR Multimodal Solutions Pvt. Ltd. (formerly known as Infinite Logistics Solutions Private Limited)
7. Container Gateway Limited
8. Allcargo Logistics Park Pvt. Ltd.
9. CMA-CGM Logistics Park (Dadri) Pvt. Ltd.
10. Angul Sukinda Railway Ltd.
11. HALCON
Subsidiaries
1. Fresh And Healthy Enterprises Ltd. (wholly owned)
2. CONCOR Air Limited. (wholly owned)
3. SIDCUL CONCOR Infra Company Ltd.(partly owned)
4. Punjab Logistics Infrastructure Ltd.(partly owned)
Whole Time Directors/Key Managerial Personnel
1. Sh. V.Kalyana Rama, Chairman & Managing Director (we.f 01.10.2016)
2. Sh.P.K.Agrawal, Director Domestic (w.e.f 01.07.2016)
3. Sh. Sanjay Swarup, Director (IM&O) (w.e.f 01.09.2016)
4. Sh. Rahul Mithal, Director (Projects & Services) (w.e.f 29.09.2017)
5. Dr P Alli Rani, Director(Finance) Upto 03.10.2017)
6. Sh.Harish Chandra, ED(Fin. & CS)
Nominated/Independent Directors
1. CA Kamlesh Shivji Vikamsey (w.e.f. 05.04.2016)
2. CA Sanjeev S. Shah (w.e.f. 05.04.2016)
3. Sh. Sanjay Bajpai (W.e.f. 01.07.2016)
4. Late Maj. Gen(Retd) Raj Krishan Malhotra( upto 16.06.2017)
5. Ms Vanita Seth(w.e.f.21.09.2017)
6. Sh Lov Verma (w.e.f. 21.09.2017)
7. Sh Anjaneya Prasad Mocherla(w.e.f. 21.09.2017)
8. Sh. S. K. Sharma (upto 26.09.2017)
9. Sh. Prabhas Dansana (w.e.f. 27.10.2017)
Enterprises owned or significantly influenced by Key Management Personnel or their relatives:
1. Seshasaila Power and Engineering Pvt. Ltd.
2. Seshasaila Logistics Pvt. Ltd.
3. Seshasaila Infrastructure Pvt. Ltd.
4. Seshasaila Power (Mandsaur) Pvt. Ltd.
5. Seshasaila Power (Dhar) Pvt. Ltd.
6. Neo Cube Technology Solutions Pvt Ltd
7. AK-BIO Power (India) Pvt. Ltd.
8. Praja Engineering Services Pvt. Ltd.
9. Venran Biotek Pvt. Ltd.
10. BPTS - Govt. of Orissa Undertaking
11. Credential Stock Brokers Limited
12. Toshali Commex Pvt.Ltd
13. Enginuity Advisors Pvt. Ltd.
14. Endocrine & Diabetes Foundation(EDF)
4.1 Related party transactions were made on armâs length.
4.2 Companyâs share of assets, liabilities, income, expenditure, contingent liabilities & capital commitments in the Subsidiaries, to the extent of information available, is as follows:
d. Contingent liabilities are disclosed to the extent of claims received and include an amount of Rs.14.68 crore (201617: Rs.13.08 crore), which may be reimbursable to the company. Any further interest demand on the basic claim is not considered where legal cases are pending, as the claim itself is not certain. No provision has been made for the contingent liabilities stated above, as on the basis of information available, careful evaluation of facts and past experience of legal aspects of the matters involved, it is not probable that an outflow of future economic benefits will take place.
e. As per assessment orders under section 143(3) of the Income Tax Act, 1961, the Assessing Officer (AO) disallowed certain claims of the company, mainly deduction under section 80IA in respect of Rail System for assessment years 2003-04 to AY 2007-08 & AY 2009-10 to AY 2015-16 and Inland Ports (ICDs/CFSs) for assessment years 2003-04 to AY 2015-16.
f. In appeal, deduction for Rail System for AY 2003-04 to AY 2005-06 & AY 2011-12 to AY 2014-15 has been allowed by CIT (A) & for AY 2006-07 to AY 2009-10 has been allowed by ITAT/Delhi. Disallowance of Rail System for AY 2010-11 has been upheld by CIT (A) & the company has filed appeal against these orders with Honâble ITAT/Delhi. Further, department has filed an appeal with ITAT/Delhi against the order of CIT(A) for AY 2011-12, AY 2012-13 & AY 2013-14 on the issue of deduction for Rail System.
g. On the matter of deduction for Inland Ports, same has been allowed by the Honâble Delhi High Court for AY 2003 04 to AY 2005-06 & AY 2007-08, by ITAT-Delhi forAY 2006-07, AY 2008-09 & AY 2009-10. Disallowance of Inland Port deduction For AY 2010-11 to AY 2014-15 has been upheld by CIT (A) & the company has filed appeal against these orders with Honâble ITAT/Delhi and department also filed an appeal with Honâble Delhi High Court against the order of Honâble ITAT/Delhi for AY 2008-09 & AY 2009-10 on the issue of deduction for Inland ports (ICDs/CFSs).
h. Appeal for AY 2015-16 on the issue of disallowance of Rail System and Inland Ports deduction is pending with CIT (A). A SLP has been filed by the Income Tax department before the Honâble Supreme Court on the issue of deduction of Inland Ports for AY 2003-04 to AY 2005-06 and AY 2007-08 against the order passed by Honâble Delhi High Court in favour of the company. The last hearing was on 06-12-2017 & Honâble Supreme Court has reserved the order.
âThe company entered into contract for supply of 1320 wagons by Hindustan engineering and Industries (HEI). After the supply of 1050 wagons, the contract was terminated during FY 2004-05, for non-fulfillment of obligation on the part of HEi. The company invoked the bank guarantee of Rs.5.99 crore for refund of unadjusted advance and Rs.7.37 crores towards performance guarantee for non fulfillment of terms of contract on the part of HEI. The matter was referred to an Arbitration Tribunal comprising three members, which has given majority award amounting to Rs.39.58 Crores and interest @ 15% from date 22.05.2005 to 13.11.2013 amounting to Rs.50.37 crore, totalling to Rs.89.95 Crore 18% interest p.a. from the date of award to the date of payment in favour of M/s Hindustan Engineering Industries on 13.11.2013. Minority award by Co-Arbitrator has been given amounting to Rs.14.61 crore in favour of the company. The majority award given in favour of HEI has been challanged by the company under section 34 of Arbitration and Concilliation Act, 1996 in the High Court of Delhi at New Delhi on dated 07.03.2014. Last hearing in the matter was held on 17.01.2018 wherein the court has fixed the next hearing for 04.05.2018 and 07.05.2018
The Company has executed âCustodian cum Carrier Bondsâ of Rs.31,369.33 crore (previous year: Rs.28,549.64 crore ) in favour of Customs Department under the Customs Act, 1962. These bonds are of continuing nature, for which claims may be lodged by the Custom Authorities. Claims lodged during the year Nil (previous year: NIL).
No further provision is considered necessary in respect of these matters as the company expects favourable outcome. It is not possible for the company to estimate the timing of further cash outflows, if any, in respect of these matters.
No contingent assets and contingent gains are probable to the company.
Note : 5. During the year, the company realised Rs.5.84 crore (previous year: Rs.12.51 crore ) (net of auction expenses) from auction of unclaimed containers. Out of the amount realized, Rs.1.32 crore (previous year: Rs.2.65 crore) is paid/payable as custom duty, Rs.4.43 crore (previous year: Rs.8.75 crore ) has been recognised as income and the balance of Rs.0.09 crore (previous year: Rs.1.11 crore ) has been shown under Current Liabilities.
(a) Current liabilities include Rs.0.07 crore (As at March 31, 2017: Rs.0.07 crore ) towards unutilised capital grant received for acquisition of specific fixed assets in CONCOR/business arrangements.
(b) Current liabilities include Rs.1.82 crore (As at March 31, 2017: Rs.1.82 crore ) towards unutilised revenue grant received from National Horticulture Board for offsetting the freight for the Horticulture Projects.
(c) Out of the total capital grant of Rs.14.17 crore, an amount of Rs.1.04 crore (previous year Nil) has been recognised in the Statement of Profit and Loss and the balance of Rs.13.13 crore is shown under liabilities. Tax provision during the year has been worked out after considering deduction of Rs.350.02 crore ( As at March 31, 2017: Rs.250.86 crore) under section 80IA of the Income Tax Act, 1961 in respect of Rail System and ICDs.
Note : 6. The Particulars of dues to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act,2006 (âMSMED Actâ)
The company has not remitted any amount in foreign currency on account of dividend during the year.
Provisions relating to disclosure of information as required by Companies Act, 2013 in case of companies other than service companies are not applicable, as the company has no manufacturing, trading and financing activities.
Company is entitled for Served from India Scheme (SFIS) of the government of India, SFIS sricps under the scheme can be utilized within 24 months from the date of issue of scrips for duty credit for import of capital goods & payment of excise duty on domestic purchases.
In the above statement:
- Previous year figures are in brackets.
- # Current year figures are unaudited.
Note 7: Works carried out by Railways/its units for the company are accounted for on the basis of correspondence /estimates/advice etc.
Note 8 : Inland Gateway Terminal (P) Ltd. (IGTPL) is a joint venture of CONCOR with Dubai Port International (DPI) for setting up and managing of container terminal at Cochin. Though CONCORâs share of Rs.89.85 crores in accumulated losses of â.617.12 crores (as per unaudited financial statements for FY 2017-18) of this JV exceeds its investment of Rs.54.60 crores as on 31st March 2018, no provision for diminution in the value of investment has been made, as with the managementâs consistent review and implementation of appropriate business strategy, this companyâs turnaround is now visible. The same is clearly established from the unaudited financial statements of IGTPL for FY 2017-18, which shows a net profit of Rs.3.32 crores earned during the year against a loss of Rs.15.00 crores in the previous year.
Management has also tested this investment for impairment in accordance with the conditions laid own under IND AS-36 âImpairment of Assetsâ. As per the impairment testing carried out by the management, it has been established that the Value in Use i.e., the present value of future expected cash flows that will accrue from the improving/enhancing of its assetâs performance exceed the carrying value of investment. IND AS-36 states that impairment needs to be provided if and only if the carrying value of investments exceeds its value in use or fair value.
Note 9: Fresh & Healthy Enterprises Ltd. (FHEL) is a wholly owned subsidiary of CONCOR. Though accumulated losses of FHEL amounting to Rs.163.77 crores (as per audited financial statements for FY 2017-18) exceeds CONCORâs investment of Rs.146.62 crores as on 31st March 2018, no provision for diminution in the value of investment has been made, as management has already finalized a business plan for revival of FHEL on the basis of its in-house financial evaluation and technical evaluation conducted by an external agency. In this direction, the Board of Directors (BOD) of CONCOR has approved the said business plan for re-engineering of FHELâs facility at Rai, Sonipat, which is proposed to be executed in two phases costing in total Rs.44.31 crores. The cost of Phase-I would be Rs.13.45 crores, for which equity infusion by CONCOR has already been approved by its BOD. On completion of Phase-I, the performance of FHEL will be reviewed and on the basis of such review, investment will be re-tested for impairment as required under IND AS-36 âImpairment of Assetsâ. The management is confident of achieving the desired results from the above business plan.
Management has also tested this investment for impairment in accordance with the conditions laid own under IND AS-36. As per the impairment testing carried out by the management, it has been established that the Value in Use i.e., the present value of future expected cash flows that will accrue from re-engineering of FHELâs facility at Rai, Sonipat exceed the carrying value of investment. IND AS-36 states that impairment needs to be provided if and only if the carrying value of investments exceeds its value in use or fair value.
Note 10: In FY 2017-18, an amount of Rs.15.75 crores (Previous year Rs.24.45 crores) has been utilized on various social activities undertaken including infrastructure and community development activities under CONCOR Corporate Social Responsibility (CSR). The amount available for spending has been utilized on various CSR activities during the year. Some of the projects in this category are related to Creating infrastructure for Schools, construction of hospital buildings, construction of PCC Rajatalab for benefit of farmers, installation of handpumps in rural areas for providing drinking water, solar electrication of Railway stations, providing solar lights to un-electrified villages, preventive health checkup camps, construction of community toilets, skill development trainings, contribution to âSwachh Bharat Koshâ etc.
Note 11 : Unless otherwise stated, the figures are in rupees crore.
Mar 31, 2017
1 Gross Block of Plant and machinery and Containers include Rs,3.72 Crore (As at March 31, 2016: Rs,1.99 crore; As at March 31, 2015: Rs,1.28 crore) and Rs,0.78 Crore( As at March 31, 2016: Rs,1.24 crore; As at March 31, 2015 : Rs,0.85 crore) respectively for items retired from active use due to obsolescence/condemnation, which are held for disposal.
2 Gross Block of Buildings include assets valuing Rs,4.23 crore (As at March 31, 2016: Rs,3.79 crore; As at March 31, 2015: Rs,31.23 crore ) in respect of which sale/lease deeds are yet to be executed.
3 Gross Block of Freehold land include assets valuing Rs,0.44 crore (As at March 31, 2016: Rs,0.44 crore; As at March 31, 2015: Rs,0.44 crore ) in respect of which sale/lease deeds are yet to be executed.
4 Contractual Commitments for acquisition of property, plant and equipment are Rs,728.18 crores( As at March 31, 2016: Rs,1213.49 crores)
5 Significant intangible assets
A primary component of CONCOR''s overall business strategy has been the development of an advanced information system. CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle Financials-ERP, CCLS (Container and Cargo Logistic System) for electronic filing of commercial documents and others, which are based on Centralized architecture deployed through Citrix environment and running over VSAT based hybrid network.
The carrying amount of significant softwareâs material for the operations of the company is Rs,2.34 crore (as at March 31, 2016: Rs,4.26 crore; as at April 1, 2015: Rs,6.37 crore) will be fully amortized in 2 years (as at March 31, 2016: 3 years; as at April 1, 2015: 4 years).
6 Prepayment of leasehold land include assets valuing Rs,121.24 crore (As at March 31, 2016: Rs,87.46 crore; As at March 31, 2015: Rs,87.46 crore ) in respect of which lease deeds are yet to be executed.
Stores and spares parts include items costing Rs,4.75 crore (2015-16: Rs,4.24 crore and 2014-15: Rs,3.14 crore), which have not been consumed during last three years. This includes Rs,0.12 crore (2015-16: Rs,0.26 crore, 2014-15: Rs,0.80 crore) identified as obsolete spares and provided for. The management expects to use the remaining items in the operations and hence has not provided any impact.
The cost of inventories recognized as an expense during the year was Rs,17.69 crore (March 31, 2016: Rs,8.78 crore).
* This includes amount recoverable from M/s Gateway Terminals India Private Limited (Related party) - Rs,Nil (As at March 31, 2016; Rs,11.75 crore; as at April 1, 2015: Rs,16.62 crore.)
7 Credit risk management
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. At the inception of a service contract, the Company collects the expected dues in advance. The balance of trade receivables represents the additional amounts charged to the customers over and above the amount already collected towards the expected dues in advance. For the recovery of balance contractual payments, the Company has a legal right to auction the material of the customers and recover the dues in terms of the provisions contained in Customs Act,1962.
Thus the Company has limited exposure to credit risk.
8 Credit risk concentration
The concentration of credit risk is limited due to the fact that the customer base is large and unrelated. No customers represent more than 5% of the total balance of trade receivables.
9 Allowance for expected credit loss
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows.
* For the purposes of this clause, the term " Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407( E ), dated November 8, 2016.
Unclaimed dividend accounts
If the dividend has not been paid or claimed within 30 days from the date of its declaration, the company is required to transfer the total amount of the dividend which remain unpaid or unclaimed, to a special account to be opened by the company in a scheduled bank to be called "Unpaid Dividend Account". The unclaimed dividend lying with company is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by the Central Government after a period of seven years of its declaration.
An amount of Rs,2,68,078 (As at March 31, 2016: Rs,2,82,684. ; As at March 31, 2015:Rs,1,02,399) has been deposited timely in the Investor Education & Protection Fund.
Bank balances held as margin money or as security against Letter of credit
Letter of credit is given for the payment to be made against Model concession agreement for TMS (Terminal Management System) with Northern Railways.
(ii) Rights, preferences and restriction attached to shares
The Company has one class of equity shares having a par value of Rs,10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
The Company has paid an interim dividend of Rs,9.60(2015-16: Rs,8.00 ) and proposed final dividend of Rs,7.50 (2015-16: Rs,5.50 ) per equity share for the year.
The Company pays its vendors immediately when the invoice is accounted and no interest during the year has been paid or is payable.(Refer Note no. 47 for disclosure made under terms ofthe Micro, Small and Medium Enterprises DevelopmentAct, 2006) The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
Note
(i) Storage and Warehousing income is net of waivers of Rs,0.46 crore (2015-16: Rs,0.69 crore)
(ii) Other operating income includes Rs,7.69 crore (2015-16- Rs,11.24 crore) towards consultancy income, which has been received from M/s Gateway Terminals India Private Limited.
(iii) Export Incentive includes Rs,21.60 Crore (2015-16: Rs,24.58 crore ) towards Grants under SFIS, which have been recognized at the time of utilization of these scripts towards procurement of Assets and Inventories. It also includes an amount of Rs,211.50 (2015-16: Rs,225.43 Crore) towards Grants under SEIS, which have been recognized during the year being the period in which the right to receive the same is established.
Other Operating expenses include Rs,44.60 crore (2015-16: Rs,30.26 crore) & Rs,17.69 crore (2015-16: Rs,8.78 crore) towards power and fuel and consumption of stores and spare parts respectively. Details of expenditure on consumption of imported & indigenous stores and spare parts are as follows:
A. Defined Contribution Plans
a) Employers Contribution to Provident Fund
Company pays fixed contribution to Provident Fund at predetermined rates to a separate trust, which invests the fund in permitted securities. The contribution to the fund for the period is recognized as expense and is charged to the profit & loss account. The obligation of the company is limited to such fixed contribution. However, the trust is required to pay a minimum rate of interest on contributions to the members as specified by Government. As per actuarial valuation such liability is NIL as at March 31, 2017 (as at March 31, 2016: NIL).
C. Defined Benefit Plans and Other Long Term Benefits
a) Contribution to Gratuity Funds - Employee''s Gratuity Fund.
The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is funded by the company and is managed by a separate Approved Trust. The liability for the same is recognized on the basis of actuarial valuation.
b) Leave Encashment/ Compensated Absence.
The company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves and medical leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.
c) Retirement Allowance
The company has formed a medical trust, which takes care of medical needs of its employees after their retirement. Their entitlement for reimbursement of medical expenses is regulated as per the policy . The liability for the same is recognized on the basis of actuarial valuation.
These plans typically expose the company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
Investment Risk The present value of the defined benefit plan liability(denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest Risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.
Longevity Risk The presenet value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of loan participants both during and after their employment. An increase in the life''s expectancy of the plan participants will increase the plan''s liability.
Salary Risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2017 by M/s Transvalue Consultants. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
An actuarial valuation was carried out in respect of the aforesaid defined benefit plans and other long term benefits based on the following assumptions.
- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs,4.15 crore (decrease by Rs,4.09 crore) (as at March 31, 2016: increase by Rs,3.34 crores (decrease by Rs,3.29 crores)) (as at April 1, 2015: increase by Rs,3.13 crore (decrease by Rs,3.01 crore)).
The estimated term of the benefit obligations in case of gratuity is 18.82 years( As at March 31, 2016:18.89 years)
The company expects to contribute Rs,8.10 crore to its gratuity plan in the next financial year.
Leave Encashment
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs,6.44 crore (increase by Rs,6.64 crore) (as at March 31, 2016: decrease by Rs,4.80 crore (increase by Rs,4.94 crore)).
- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs,5.38 crore (decrease by Rs,5.21 crore) (as at March 31, 2016: increase by Rs,4.00 crore (decrease by Rs,3.88 crores)).
The estimated term of the benefit obligations in case of leave encashment is 18.82 years( As at March 31, 2016:18.89 years)
Leave Travel Concession
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs,0.04 crore (increase by Rs,0.04 crore) (as at March 31, 2016: decrease by Rs,0.02 crore (increase by Rs,0.02 crore)).
- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would Rs,0.03 crore (decrease by Rs,0.03 crores) (as at March 31, 2016: increase by Rs,0.02 crore (decrease by Rs,0.02 crores)).
The estimated term of the benefit obligations in case of leave travel concession is 1.05 years( As at March 31, 2016: 2.05years)
Post retirement Benefits
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs,0.24 crore (increase by Rs,0.24 crore) (as at March 31, 2016: decrease by Rs,0.42 crore (increase by Rs,0.42 crore)) (as at April 1, 2015: decrease by Rs,0.10 crore (increase by Rs,0.10 crore)).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Each year an Asset-Liability-Matching study is performed in which the consequences of the strategic investment policies are analysed in terms of risk-and-return profiles. It is ensured that the defined benefit obligation is backed up by assets to maintain an assurance that assets are sufficient within the next 12 months.
There has been no change in the process used by the Company to manage its risks from prior periods.
There are no changes in the accounting policies which had impact on the amounts reported for earning per share Note
The Board of Directors have alloted bonus shares to the shareholders on 10.04.2017 after seeking the approval of the shareholders in which bonus shares were issued in the ratio of 1:4 (one bonus share for every four shares). As a result, the paid up share capital of the company increased to Rs,243.72 crore comprising of 243717739 equity shares of Rs,10/- each. Accordingly, as per requirement of Ind AS 33, the basic and diluted earnings per share for all the periods presented has been computed on the basis of new number of shares post bonus issue i.e. 243717739 equity shares of Rs,10/- each.
37.1 Services from which reportable segments derive their revenues
The Segment reporting disclosed by the Company in this section is presented in accordance with the disclosures requirements of Ind AS 108 "Operating Segment".
Information reported to the chief operating decision maker(CODM) for the purposes of resource allocation and assessment of segment performance focuses on the divisions operated in the company. There are two major operating divisions- EXIM and Domestic, which are organized on All India basis. The information is further analyzed based on the different classes of customers. Both EXIM and Domestic divisions of the company are engaged in handling, transportation & warehousing activities. The Company has not aggregated any operating segments for presentation purposes.
As at March 31, 2017, the operating segment of the Company are as under :
The Company is organized into two major operating divisions - EXIM and Domestic. The divisions are the basis on which the Company reports its primary segment information. Segment revenue and expenses directly attributable to EXIM and Domestic segments are allocated to the two segments. Joint revenue and expenses have been allocated on a reasonable basis. Segment assets include all operating assets used by a segment and consist principally of inventories, sundry debtors, cash and bank balances, loans & advances, other current assets and fixed assets net of provisions. Similarly, segment liabilities include all operating liabilities and consist principally of sundry creditors, advance/deposits from customers, other liabilities and provisions. Segment assets and liabilities do not, however, include provisions for taxes. Joint assets & liabilities have been allocated to segments on a reasonable basis.
As the operations of the Company are presently confined to the geographical territories of India, there are no reportable geographical segments.
The accounting policies of the reportable segments are the same as the Company''s accounting policies described in Note
1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors'' salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
Revenue and expenses directly identifiable to the segments have been allocated to the relatively primary reportable segments.
Segment revenue and expenses which are not directly identifiable to the primary reportable segments have been disclosed under unallowable, which primarily includes interest and other income and Corporate Expenses. Other income includes Rent income, dividend income and Interest Income. Corporate Expenses includes Employee staff benefit expense, Administrative expense and Depreciation expense of Corporate office.
(1) Capital management
The company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the capital structure. The capital structure of the Company consists of total equity . The Company is not subject to any externally imposed capital requirements.
During the year there has been no change in the capital structure of the company and its paid up share capital stands at Rs,194.97 crore. In the month of October 2016, Ministry of Railways, Government of India has transferred 82,340 equity shares to the eligible employees of company. Further, during January 2017 and March 2017, Government of India divested 1.40% and 0.55% respectively stake in company through CPSE ETF FFO and CPSE ETF FFO2. Through this successful CPSE ETF FFOs, Govt. has divested 38,08,253 equity shares of the company. Accordingly, the shareholding of Government and others in the company as on 31.03.2017 was 54.80% and 45.20% respectively, which was 56.79% & 43.21% respectively as on 31.03.2016.
In the month of February 2017, issuance of one bonus equity share for every four equity shares held was recommended by board for which approval of shareholders through postal ballet route was taken by the company. After the above approval of shareholders, the Board of Directors have allotted bonus shares on April 10, 2017 to the shareholders and as a result the paid up share capital of the company increased from Rs,194.97 crores to Rs,243.72 crores comprising of 24,37,17,739 equity shares Rs,10/- each.
(i) Gearing ratio
The Company has no outstanding debt as at the end of reporting period. Accordingly, the Company has nil gearing ratio as at March 31, 2017 and March 31, 2016 respectively.
(iii) Financial risk management objectives
The Company''s corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.
(iv) Market Risk
The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates.
Market risk exposures are measured using sensitivity analysis.
There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.
(v) Foreign Currency risk management
The company is not subject to significant transactions denominated in foreign currencies. The company does not have earnings in foreign currency but the foreign currency outgo made during the year is Rs,86.59 crores ( 2015-16: Rs,98.20 crores; 2014-15: Rs,20.12 crores) against which the net gain/(loss) on foreign currency transactions recorded in the books is insignificant .Consequently, exposures to exchange rate fluctuations are limited.
(vi) Interest rate risk management
The Company has not availed borrowings, hence is not exposed to interest rate risk.
(vii) Other price risks
The company is not exposed to price risk as its investments in debt based marketable securities are held in a business model to collect contractual amounts at maturity and are carried at amortised costs. Thus the change in fair value of these investments does not impact the Company.
These investments are tradable in market . A 10% increase / decrease in the market price of these investments as at March 31, 2017 will lead to Rs,74.17 crores (As at March 31, 2016: Rs,70.66 crores; As at March 31, 2015: Rs,48.13 crores) increase / decrease in the fair value of these investment.
(viii) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
The Company has limited exposure to credit risk owing to the balance of trade receivables as explained in Note no. 11.
Company''s bank balances and investments in marketable securities are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
The Company is exposed to credit risk in relation to financial guarantees given to banks on behalf of subsidiaries / joint venture companies. The Company''s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on as at March 31, 2017 is Rs,81.71 crores (As at March 31, 2016 is Rs,80.47 crores; As at March 31, 2015 is Rs,152.57 crores).
(ix) Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2017;
* Based on expectations at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the arrangement. The maximum amounts the Company could be forced to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee is Rs,74.28 crores (As at March 31, 2016: Rs,80.47 crores; As at March 31, 2015 : Rs,152.57 crores).
The table below provides details regarding the contractual maturities of financial assets including estimated interest receipts as at March 31, 2016:
The table below provides details regarding the contractual maturities of financial assets including estimated interest receipts as at April 1, 2015:
(x) Fair value measurements
None of the company''s financial assets and financial liabilities are measured at fair value at the end of the reporting period.
* There is no significant change in the fair value of these financial assets and financial liabilities , therefore fair value is equal to its carrying value.
** These investments include investments made in tax free bonds only.
10. Name of related parties and description of relationship: Joint Ventures
1. Star Track Terminals Pvt. Ltd.
2. Albatross Inland Ports Pvt. Ltd.
3. Gateway Terminals India Pvt. Ltd.
4. Himalayan Terminals Pvt. Ltd. (Foreign Joint Venture)
5. India Gateway Terminal Pvt. Ltd.
6. TCI-CONCOR Multimodal Solutions Pvt. Ltd. (formerly known as Infinite Logistics Solutions Private Limited)
7. Container Gateway Limited
8. Allcargo Logistics Park Pvt. Ltd.
9. CMA-CGM Logistics Park (Dadri) Pvt. Ltd.
10. Angul Sukinda Railway Ltd.
11. HALCON Subsidiaries
1. Fresh And Healthy Enterprises Ltd. (wholly owned)
2. CONCOR Air Limited. (wholly owned)
3. SIDCUL CONCOR Infra Company Ltd.(partly owned)
4. Punjab Logistics Infrastructure Ltd.(partly owned)
Whole Time Directors
1. Sh. Anil K. Gupta, Chairman & Managing Director (Upto 30.09.2016)
2. Sh. V.Kalyana Rama, Chairman & Managing Director (we.f 01.10.2016)
3. Dr. P. Alli Rani, Director (Finance)
4. Sh. Arvind Bhatnagar, Director (Domestic) (Upto 30.06.2016)
5. Sh.P.K.Agrawal, Director Domestic (w.e.f 01.07.2016)
6. Sh. Yash Vardhan, Director (IM&O) (Upto 31.08.2016)
7. Sh. Sanjay Swarup, Director (IM&O) (w.e.f 01.09.2016)
8. Sh. V. Kalyana Rama, Director (Projects & Services) Upto 30.09.2016)
Nominated/Independent Directors
1. Sh. Manoj K. Akhouri (Upto 25.04.2016)
2. CA Kamlesh Shivji Vikamsey (w.e.f. 05.04.2016)
3. Maj. Gen. (Retd.) Raj Krishan Malhotra (w.e.f. 05.04.2016)
4. CA Sanjeev S. Shah (w.e.f. 05.04.2016)
5. Sh. S. K. Sharma (w.e.f. 22.05.2016)
6. Sanjay Bajpai (W.e.f. 01.07.2016)
Enterprises owned or significantly influenced by Key Management Personnel or their relatives:
1. Seshasaila Power and Engineering Pvt. Ltd.
2. Seshasaila Logistics Pvt. Ltd.
3. Seshasaila Infrastructure Pvt. Ltd.
4. Seshasaila Power (Mandsaur) Pvt. Ltd.
5. Seshasaila Power (Dhar) Pvt. Ltd.
6. New Cube Technology Solutions Pvt Ltd
7. AK-BIO Power (India) Pvt. Ltd.
8. Praja Engineering Services Pvt. Ltd.
9. Venran Biotek Pvt. Ltd.
10. BPTS - Govt. of Orissa Undertaking
11. Credential Stock Brokers Limited
12. Toshali Commex Pvt.Ltd
The loan is unsecured and receivable in next year.
The loan is unsecured and receivable in next year
B. Independent Directors
Sitting fees paid to nominated/independent directors for the year is Rs,0.24 crore (previous year Rs,0.10 crore).
11. Disclosure in respect of Government Controlled Entities
12. Name of Government controlled entities and description of relationship wherein significant amount of transaction carried out:
Government controlled entities
1. Indian Railways
13. Transaction with Government Controlled Entities
The above transactions (revenue/expenses) with the government related entities presented for the parties covering collectively up to 80% of total transactions (revenue/expenses). The Company has entered into transactions related to expenses such as telephone expenses, air travel, fuel purchase etc. with above mentioned and other various government controlled entities. These expenses are not material individually and collectively.
The Company has also entered into transactions related to operational and other expenses such as telephone expenses, air travel, fuel purchase etc. with above mentioned and other various government related entities. These operational and other expenses are insignificant individually and collectively.
Contingent liabilities are disclosed to the extent of claims received and include an amount of Rs,13.08 crore (2015-16:Rs,179.86 crore; 2014-15; Rs,281.28 crore), which may be reimbursable to the company. Any further interest demand on the basic claim is not considered where legal cases are pending, as the claim itself is not certain. No provision has been made for the contingent liabilities stated above, as on the basis of information available, careful evaluation of facts and past experience of legal aspects of the matters involved, it is not probable that an outflow of future economic benefits will take place.
d. As per assessment orders under section 143(3) of the Income Tax Act, 1961, the Assessing Officer (AO) disallowed certain
claims of the company, mainly deduction under section 80IA in respect of Rail System for assessment years 2003-04 to 200708 & 2009-10 to 2014-15 and Inland Ports (ICDs/CFSs) for assessment years 2003-04 to 2014-15. In appeal, for AY 2003-04 to 2007-08 & 2009-10, deduction for Rail System has been allowed by CIT (A) and ITAT/Delhi and for AY 2011-12 to 2013-14, deduction for Rail System has been allowed by CIT (A). On the matter of deduction for Inland Ports, same has been allowed by the Hon''ble Delhi High Court for AY 2003-04 to 2005-06 & AY 2007-08, by ITAT, Delhi for AY 2008-09, by CIT (A) for AY 200910 and for AY 2006-07, the matter has been referred to Delhi Bench of ITAT by Special Bench of ITAT/Mumbai giving a verdict that ICDs/CFSs set up by the company are Inland Ports. For AY 2011-12 to AY 2013-14, disallowance of Inland Port deduction and for AY 2010-11, disallowance of Rail System and Inland Port deduction has been upheld by CIT (A) & the company has filed appeal against these orders with Hon''ble ITAT/Delhi. Appeal for AY 2014-15 on the issue of disallowance of Rail System and Inland Ports deduction is pending with CIT (A). For AY 2006-07 & 2007-08, department has filed belated appeal(s) with the Hon''ble ITAT/Delhi against the order(s) passed by CIT (A), vide which relief had been granted in favour of the company with regard to claim of deduction u/s 80IA of the Act for Rail System. SLP has been filed by the department before the Hon''ble Supreme Court on the issue of deduction of Inland Ports for AY 2003-04 to AY 2005-06 and AY 2007-08 against the order passed by Hon''ble Delhi High Court in favour of the company and the same has been admitted. Further, department has filed appeal with ITAT/Delhi against the order of CIT(A) for AY 2011-12 on the issue of deduction for Rail System.
e. As per assessment orders under section 147/143(3) of the Income Tax Act, 1961, the Assessing Officer (AO) disallowed certain claims of the company for AY 2007-08. Regarding AY 2007-08, appeal filed by the company with CIT (A) has been allowed in part and company has preferred second appeal with the Hon''ble ITAT/Delhi against such order. Further, department has also filed appeal with the Hon''ble ITAT/Delhi against the order passed by CIT (A) for relief grated to the company. Demand for AY 2007-08 has been further enhanced by AO vide order passed u/s 154/147/143(3). Appeal filed by the company against the order of AO u/s 154/147/143(3) with CIT (A) has been dismissed and the company has preferred second appeal with the Hon''ble ITAT/ Delhi against such order.
f. For AY 2006-07, appeal filled with CIT (A) against the order of AO imposing penalty u/s 271(1) (c) have been decided in company''s favour. However, department has filed appeal before the Hon''ble ITAT/Delhi against the order of CIT (A).
The company entered into contract for supply of 1320 wagons by Hindustan engineering and Industries (HEI). After the supply of 1050 wagons, the contract was terminated during FY 2004-05, for non-fulfillment of obligation on the part of HEI. The company invoked the bank guarantee of Rs,5.99 crore for refund of unadjusted advance and Rs,7.37 crores towards performance guarantee for non fulfillment of terms of contract on the part of HEI. The matter was referred to an Arbitration Tribunal comprising three members, which has given majority award amounting to Rs,39.58 Crores and interest @ 15% from date 22.05.2005 to 13.11.2013 amounting to Rs,50.37 crore, totaling to Rs,89.95 Crore 18% interest p.a. from the date of award to the date of payment in favour of M/s Hindustan Engineering Industries on 13.11.2013. Minority award by Co Arbitrator has been given amounting to Rs,14.61 crore in favour of the company. The majority award given in favour of HEI has been challanged by the company under section 34 of Arbitration and Conciliation Act, 1996 in the High Court of Delhi at New Delhi on dated 07.03.2014
The Company has executed "Custodian cum Carrier Bonds" of Rs,28,549.64 crore (previous year: Rs,27,686.46 crore) in favour of Customs Department under the Customs Act,1962. These bonds are of continuing nature, for which claims may be lodged by the Custom Authorities. Claims lodged during the year Nil (previous year: NIL)
No further provision is considered necessary in respect of these matters as the company expects favorable outcome. It is not possible for the company to estimate the timing of further cash outflows, if any, in respect of these matters.
No contingent assets and contingent gains are probable to the company.
Note 46 : During the year, the company realized Rs,12.15 crore (previous year: Rs,6.57 crore) (net of auction expenses) from auction of unclaimed containers. Out of the amount realized, Rs,2.50 crore (previous year: Rs,1.20 crore) is paid/payable as custom duty, Rs,8.54 crore (previous year: Rs,4.37 crore) has been recognized as income and the balance of Rs,1.11 crore (previous year: Rs,1.00 crore) has been shown under Current Liabilities.
(a) Current liabilities include Rs,0.07 crore (As at March 31, 2016: Rs,1.89 crore) towards unutilized capital grant received for acquisition of specific fixed assets in CONCOR/business arrangements. Amount of Rs,7.48 crore (As at March 31, 2016: Rs,4.83 crore) towards capital grants utilized during the year for acquisition of fixed assets has been deducted from the gross value of fixed assets and amount of NIL (As at March 31, 2016: Rs,8.73 crore) has been transferred to subsidiaries.
(b) Current liabilities include Rs,1.82 crore (As at March 31, 2016: Rs,1.82 crore) towards unutilized revenue grant received from National Horticulture Board for offsetting the freight for the Horticulture Projects. Amount of NIL (As at March 31, 2016: NIL) towards revenue grants received & utilized during the year by offsetting the freight for the Horticulture Projects has been recognized as Rail Freight Income.
Tax provision during the year has been worked out after considering deduction of Rs,250.86 crore under section 80IA of the Income Tax Act, 1961 in respect of Rail System and ICDs.
Note 47: The Particulars of dues to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act,2006 ("MSMED Actâ)
In the above statement:
- Previous year figures are in brackets.
- # Current year figures are unaudited.
Note 52: Works carried out by Railways/its units for the company are accounted for on the basis of correspondence / estimates/advice etc.
Note 53: India Gateway Terminal (P) Ltd. {IGTPL} is a joint venture of CONCOR with Dubai Port International {DPI} for setting up and managing container terminals at Cochin. Though CONCOR''s share (Rs,88.59 crore) of accumulated losses of Rs,608.46 crore (as per unaudited accounts of FY 2016-17) in IGTPL exceeds its investment (Rs,54.60 crore) in the JV as on 31.03.2017, no provision for diminution in the value of investment has been made, as management is making all possible efforts for its revival and is confident of its turn-around.
Note 54: Fresh and Healthy Enterprises Ltd. {FHEL} is a fully owned subsidiary of CONCOR. Though accumulated losses of FHEL of Rs,153.33 crore (as per audited accounts of FY 2016-17) is very close to CONCOR''s investment (Rs,146.62 crore) in the subsidiary as on 31.03.2017, no provision for diminution in the value of investment has been made, as management is making all possible efforts for its revival and is confident of its turn-around.
Note 55: In FY2016-17 an amount of Rs,24.45 crores (Previous year Rs,30.96 crores) was utilized on various activities undertaken including infrastructure and community development activities under CSR. The amount available for spending has been utilized on Corporate Social Responsibility (CSR) activities during the year. Some of the projects in this category are related to Creating infrastructure for Schools in the state of Odisha, Maharashtra and Chattisgarh, Solar electrification of railwaystations, providing solar lights to un-electrified villages, health checkup camps, construction of toilets, skill development, etc.
Note 56: Unless otherwise stated, the figures are in rupees crore.
The effect of the company''s transition to Ind AS, described in note below, is summarized in this note as follows:
i. Transition election
ii. Reconciliation of equity as previously reported under Indian GAAP to Ind-AS
iii. Adjustments to the statement of cash flows .
(i) Transition election
The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2015 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.
1. In accordance with Ind-AS transitional provisions, the company opted to consider previous GAAP carrying value of property, plant and equipment as deemed cost on transition date.
2. In accordance with Ind-AS transitional provisions, investments in subsidiaries, joint ventures and associates are required to be measured either at cost or at fair value as per Ind AS 109. The Company has measured its investment at cost, which is the previous GAAP carrying amount at the date of transition in the entity''s separate financial statements
3. Designation of previously recognized financial instruments exemption- The Company do not have any investments in equity instruments of Companies (other than subsidiaries, joint ventures and associates) which company opted for transition option to be measured at FVOCI or at amortized cost.
4. In accordance with Ind-AS transitional provisions, the company opted to determine whether an arrangement existing at the date of transition contains a lease on the basis of facts and circumstances existing at the date of transition rather than at the inception of the arrangement.
Notes:
i. Under Ind-AS, guarantees issued are recognized at fair value at inception and measured at the higher of the amortized value or the obligation amount in case it is probable that the guarantee amount is payable. Under Indian GAAP, guarantee issued are not recognized unless it is probable that the guarantee amount is payable.
ii. Under Ind-AS dividends payable and the associated corporate dividend tax are recorded as a liability in the year in which these are declared and approved. Under older Indian GAAP, dividends payable are recorded as a provision in the year to which they relate.
iii. Under Ind-AS, lease rent are recognized based on straight line basis over the period of the lease including extendable period. Under older Indian GAAP, lease rent are recognized without considering the straight lining.
iv. Under Ind-AS, security deposit are measured at fair value at inception and measured at the higher of the amortized value or the obligation amount in case it is probable that the amount is payable/receivable. Under older Indian GAAP, no such measurement at amortized cost is required.
v. Under Ind-AS, loans and advances are initially recognized at fair value and then measured using effective interest rate rate as a result of which any employee cost which is the difference between market rate of interest and contractual interest rate is recognized over the usage pattern of the loan. Under older Indian GAAP, such loans and advances are recognized at the contractual amount and such employee cost are not accounted for and interest cost is recognized based on the contractual interest rate.
vi. Under Ind-AS, investment in bonds are measured at amortized cost and its related premium or interest are recognized through profit or loss. Under older Indian GAAP, the premium was added up to the cost of investments in bonds.
vii. As per Ind-AS, Actuarial gains and losses on post- employment defined benefit plans to be recorded through OCI. Under previous Indian GAAP, Actuarial gains and losses were recognized in profit or loss.
viii. Under Ind AS, depreciation on freehold land has been reversed.
ix. Under previous GAAP, HALCON was classified as business arrangement and share of profit was included in the profit of the company. However, under Ind AS, HALCON has been classified as a joint venture and has been accounted for using equity method only in consolidation.
x. Consequential deferred tax on all the above adjustments.
Prior Period Errors identified during transition to Ind AS
xi. Export benefits pertaining to years 2015-16 which had not been recognized under previous GAAP has been recognized in the year 2015-16.
xii. Consequential tax impact on xi. Above
xiii. Deferred tax pertaining to transition date and 2015-16 have been adjusted to the respective periods.
Note 14: Approval of financial statements
The financial statements were approved for issue by the board of directors on May 25, 2017.
Mar 31, 2015
1. Contingent liabilities not provided for:
a. Outstanding Letters of Credit,
bankguarantees&corporateguarantees 69.62 51.43
b. Bankguarantees/bid bonds for
jointventures&Subsidiaries 167.57 249.35
c. Claims against the Company not
acknowledged as debt, net of
advances/payments under protest,
arbitration, court orders, etc.
[include claims of Rs.271.44 crore
(previous year: Rs.318.24 crore)
pending in arbitration/courts
pursuant to arbitration awards] 1387.68 869.63
Contingent liabilities are disclosed to the extent of claims received
and include an amount of Rs.281.28 crore (previous year: Rs.257.67
crore), which may be reimbursable to the company. Any further interest
demand on the basic claim is not considered where legal cases are
pending, as the claim itself is not certain. No provision has been made
for the contingent liabilities stated above, as on the basis of
information available, careful evaluation of facts and past experience
of legal aspects of the matters involved, it is not probable that an
outflow of future economic benefits will take place.
2. As per assessment orders under section 143(3) of the Income Tax
Act, 1961, the Assessing Officer (AO) disallowed certain claims of the
company, mainly deduction under section 80IA in respect of Rail System
for assessment years 2003-04 to 2007-08 & 2009-10 to 2012-13 and Inland
Ports (ICDs/CFSs) for assessment years 2003-04 to 2012-13. Inappeal,
for AY 2003-04 to 2007-08 & 2009-10, deduction for Rail System has been
allowed by CIT (A). On the matter of deduction for Inland Ports, same
has been allowed by the Hon'ble Delhi High Court for AY 2003-04 to
2005-06, by ITAT/Delhi for AY 2007-08, by CIT (A) for AY 2009-10 and
for AY 2006-07, the matter has been referred to Delhi Bench of ITAT by
Special Bench of ITAT/Mumbai giving a verdict that ICDs/CFSs set up by
the company are Inland Ports. For AY 2008-09, disallowance of Inland
Port deduction and for AY 2010-11, disallowance of Rail System and
Inland Port deduction has been upheld by CIT (A) &the company has filed
appeal against these orders with Hon'ble ITAT/Delhi. Appeal for AY
2011-12 and Ay 2012-13 on the issue of disallowance of Rail System and
Inland Ports deduction is pending with CIT (A). ForAY 2006-07 &
2007-08, department has filed belated appeal(s) with the Hon'ble
ITAT/Delhi against the order(s) passed by CIT (A), vide which relief
had been granted in favour of the company with regard to claim of
deduction u/s 80IA of the Act for Rail System. SLP has been filed by
the department before the Hon'ble Supreme Court on the issue of
deduction of Inland Ports for AY 2003-04 and AY 2005-06 against the
order passed by Hon'ble Delhi High Court in favour of the company and
the same has been admitted. Further, department has filed appeal with
ITAT/Delhi against the order of CIT(A) for AY 2009-10 on the issue of
deduction for Inland Ports and Rail System.
3. As per assessment order under section 147/143(3) of the Income Tax
Act, 1961, the Assessing Officer (AO) disallowed certain claims of the
company for assessment year 2007-08. In this regard, appeal filed by
the company with CIT (A) has been allowed in part and company has
preferred second appeal with the Hon'ble ITAT/Delhi against such order.
Further, department has also filed appeal with the Hon'ble ITAT/Delhi
against the order passed by CIT (A) for relief granted to the company.
Demand for AY 2007-08 has been further enhanced by AO vide order passed
u/s 154/147/143(3). Appeal filed by the company against the order of AO
u/s 154/147/143(3) with CIT (A) has been dismissed and the company has
preferred second appeal with the Hon'ble ITAT/Delhi against such order.
4. For AY 2006-07, appeal filed with CIT (A) against the order of AO
imposing penalty u/s 271(1) (c) have been decided in company's favour.
However, department has filed appeal before the Hon'ble ITAT/Delhi
against the order of CIT (A).
5. The company entered into a contract for supply of 1320 wagons by
Hindustan Engineering and Industries Ltd (HEI). After the supply of
1050 wagons, the contract was terminated during FY 2004-05, for
non-fulfilment of obligations on the part of HEI. Company invoked the
bank guarantee of Rs.5.99 crore for refund of unadjusted advance and
Rs.7.37 crore towards performance guarantee for non-fulfilment of terms
of contract on the part of HEI. The matter was referred to an
Arbitration Tribunal comprising three members, which has given majority
award amounting to Rs.39.58 crore and interest @15% from date
22.05.2005 to 13.11.2013 amounting to Rs.50.37 crore, totalling to
Rs.89.95 crore 18% interest p.a. from the date of award to the date of
payment in favour of M/s Hindustan Engineering Industries on
13.11.2013. Minority award by Co- Arbitrator has been given amounting
to Rs.14.61 crore in favour of the company. The majority award given in
favour of HEI has been challenged by the company under section 34 of
Arbitration and Conciliation Act, 1996 in the High Court of Delhi at
New Delhi on dtd. 07.03.2014.
6. The Company has executed "Custodian cum Carrier Bonds" of
Rs.28,460.50 crore (previous year: Rs.26,843.00 crore) in favour of
Customs Department under the Customs Act, 1962. These bonds are of
continuing nature, for which claims may be lodged by the Custom
Authorities.
7. (a) Tax provision during the year has been worked out after
considering tax deduction of Rs.122.29 crore under section
80IAofthe Income Tax Act, 1961 in respect of Rail System & Inland
Container Depots (Inland Ports).
(b) As per' Guidance Note on accounting for credit available in respect
of Minimum Alternative Tax under the Income Tax Act,1961' issued by
ICAI, income tax provision for current year has been worked out after
availing MAT credit of Rs.39.28 crore. Unabsorbed credit as at year end
NIL (Previous Year Rs.39.28 crore).
8. During the year, the company realised Rs.15.04 crore (previous
year: Rs.17.86 crore) (net of auction expenses) from auction of
undelivered containers. Out of the amount realized, Rs.5.50 crore
(previous year: Rs.4.66 crore) is paid/payable as custom duty, Rs.7.59
crore (previous year: Rs.12.01 crore) has been recognised as income and
the balance of Rs.1.95 crore (previous year: Rs.1.19 crore) has be
shown under Current Liabilities.
9. (a) Current liabilities include Rs.14.83 crore (previous year:
Rs.14.38 crore) towards unutilised capital grant received for
acquisition of specific fixed assets in CONCOR/business arrangements.
Amount of Rs.1.12 crore (previous year: NIL) towards capital grants
received & utilised during the year for acquisition of fixed assets has
been deducted from the gross value of fixed assets.
(b) Current liabilities include Rs.1.82 crore (previous year: Rs.1.82
crore) towards unutilised revenue grant received from National
Horticulture Board for offsetting the freight for the Horticulture
Projects. Amount of NIL (previous year: Rs.4.28 crore) towards revenue
grants received & utilised during the year by offsetting the freight
forthe Horticulture Projects has been recognized as Rail Freight
Income.
10. Works carried out by Railways/its units for the company are
accounted for on the basis of correspondence / estimates/advice etc.
xi) Remittance in foreign currency for dividend:
The company has not remitted any amount in foreign currency on account
of dividend during the year.
11. Provisions relating to disclosure of information as required by
Companies Act, 2013 in case of companies other than service companies
are not applicable, as the company has no manufacturing, trading and
financing activities.
12. Company is entitled for Served From India Scheme (SFIS) of the
Government of India. SFIS scrips under the scheme can be utilized
within 18 months from the date of issue of scrips for duty credit for
import of capital goods & payment of excise duty on domestic purchases.
13. The Company has, with effect from 1st April, 2007, adopted
Accounting Standard 15, Employee Benefits (revised 2005), issued by the
Institute of Chartered Accountants of India (ICAI). The disclosures as
required as per the above accounting standard are as under:
(a) Defined Contribution plans:
1. Employers' contribution to Provident Fund
2. Employers' contribution to Employees Pension scheme, 1995
Company pays fixed contribution to Provident Fund at predetermined
rates to a separate trust, which invests the fund in permitted
securities. The contribution to the fund for the period is recognized
as expense and is charged to the profit & loss account. The obligation
of the company is limited to such fixed contribution. However, the
trust is required to pay a minimum rate of interest on contributions to
the members as specified by Government. As per actuarial valuation such
liability is NIL as on 31.03.2015 (Previous Year: NIL). During the
year, the company has recognized the following amounts in the profit
and LossAccount.
1. Employers' contribution to Provident Fund - Rs.8.22 crore (previous
year: Rs.5.95 crore)
2. Employers' contribution to Employees Pension scheme, 1995 - Rs.1.50
crore (Previous year: Rs.0.89 crore)
(b) Defined benefit plans:
Gratuity:
The Company has a defined benefit gratuity plan, which is regulated as
per the provisions of Payment of Gratuity Act, 1972. The scheme is
funded by the company and is managed by a separate trust. The liability
for the same is recognized on the basis of actuarial valuation.
Leave encashment:
The company has a defined benefit leave encashment plan for its
employees. Under this plan, they are entitled to encashment of earned
leaves and medical leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave
encashment have been provided on the basis of actuarial valuation.
Post Retirement Medical Benefits:
The company has formed a medical trust, which takes care of medical
needs of its employees after their retirement. Their entitlement for
reimbursement of medical expenses is regulated as per the policy in
vogue. The liability for the same is recognized on the basis of
actuarial valuation.
14. Segment Information as perAccounting Standard-17:
a) Primary Segments:
The company is organized onAll-India basis into two major operating
divisions- EXIM and Domestic. The divisions are the basis on which the
company reports its primary segment information. Both EXIM and Domestic
divisions of the company are engaged in handling, transportation &
warehousing activities.
Segment revenue and expenses directly attributable to EXIM and Domestic
segments are allocated to the two segments. Joint revenue and expenses
have been allocated on a reasonable basis. Segment assets include all
operating assets used by a segment and consist principally of
inventories, sundry debtors, cash & bank balances, loans & advances,
other current assets and fixed assets net of provisions. Similarly,
segment liabilities include all operating liabilities and consist
principally of sundry creditors, advance from customers, other
liabilities and provisions. Segment assets and liabilities do not,
however, include provisions for taxes. Joint assets & liabilities have
been allocated to segments on a reasonable basis.
15. Related Party Disclosures as per Accounting Standard-18:
a) Joint Ventures/Business Associate:
1. Star Track Terminals Pvt. Ltd.
2. Albatross Inland Ports Pvt. Ltd.
3. Gateway Terminals India Pvt. Ltd.
4. Himalayan Terminals Pvt. Ltd. (Foreign Joint Venture)
5. HALCON (A business arrangement)
6. India Gateway Terminal Pvt. Ltd.
7. TCI-CONCOR Multimodal Solutions Pvt. Ltd. (formerly known as
Infinite Logistics Solutions Pvt. Ltd.)
8. Container Gateway Limited
9. Allcargo Logistics Park Pvt. Ltd.
10. CMA-CGM Logistics Park (Dadri) Pvt. Ltd.
11. Angul Sukinda Railway Ltd.
b) Subsidiaries: Fresh And Healthy Enterprises Ltd. (wholly owned),
CONCOR Air Ltd. (wholly owned), SIDCUL CONCOR Infra Company Ltd.(partly
owned) and Punjab Logistics Infrastructure Ltd.(partly owned).
c) Key Management Personnel:
Whole Time Directors:
1. Anil K. Gupta, CMD
2. Arvind Bhatnagar, Director (Domestic) w.e.f. 09.09.2013
3. Dr. P. Alli Rani, Director (Finance)
4. Harpreet Singh, Director (Projects & Services) upto 30.09.2014
5. Yash Vardhan, Director (IM&O)
Nominated/Independent Directors:
1. Manoj K. Akhouri
2. Dr. A. K. Bandyopadhyay (upto 12.05.2014)
3. Dr. Kausik Gupta (upto 12.05.2014)
4. Lt. Gen. (Retd.) Arvind Mahajan (upto 12.05.2014)
5. Sudhir Mathur
6. Pradeep Bhatnagar
7. Deepak Gupta (upto 22.11.2014)
8. M. P. Shorawala
9. N. Madhusudana Rao (From 16.10.2014)
16. Remuneration paid to whole time directors for the yearis (previous
year Rs.156.64 lakh) and amount of dues outstanding to the company as on
31st March 2015 are Rs.0.05 lakh (previous year Rs.1.77 lakh). Sitting
fee paid to nominated/independent directors for the year is Rs.8.32 lakh
(previous year Rs.13.93 lakh).
17. India Gateway Terminal (P) Ltd. {IGTPL} is a joint venture of CONCOR
with Dubai Port International {DPI} for setting up and managing
container terminals at Cochin. Though CONCOR's share (Rs.80.26 crore)
of accumulated losses of Rs.551.22 crore (as per unaudited accounts of
FY 2014-15) in IGTPLexceeds its investment (Rs.54.60 crore) in the JV
as on 31.03.2015, management is making all possible efforts for its
revival and is confident of its turn- around.
In the above statement:
* Previous year figures are in brackets.
# Current year figures are unaudited.
## Investment in this company has been made in FY 2014-15.
18. In the opinion of the management, during the year there are no
indications that impairment of any asset has taken place. Accordingly,
no provision for impairment of assets is required as per Accounting
Standard 28.
19. Pending issuance of notification under Section 441Aof the
Companies Act, 1956, no provision has been made towards cess on the
turnover of the company.
20. During the period, the company has revised the depreciation rates
based on the maximum useful life of its various fixed assets as
prescribed in Part-C of Schedule 11 to the Companies Act, 2013. As a
result, depreciation for the period ended March 31, 2015 is higher by
Rs.170.12 crore and accordingly Profit Before Tax during the year is
reduced by Rs.170.12 crore. Further, in case of fixed assets whose
useful life has already been completed as on March 31,2014, the
carrying value (net of residual value) of those fixed assets (net of
deferred tax) amounting to Rs.83.28 crore has been debited to the
opening balance of Retained Earnings.
21. CONCOR's Board of Directors in its 166th meeting held on 27th1
May, 2014 approved the proposal of conversion of an amount of
Rs.70/-crores, out of loan outstanding to CONCOR, into equity Share
Capital of FHEL. Conversion of loan into Equity share capital, had to
be done at a price to be determined through valuation of shares of FHEL
by independent valuer.
For the purpose of giving effect to above, FHEL's Shareholders' in
their Annual General Meeting held on 01.08.2014, have accorded their
approval for issue of 6,92,38,378 Equity Shares of Rs.10/- each at
premium of Rs.0.11/-, as per valuation done by M/s. Dharam Raj & Co.,
Chartered Accountant (Agency appointed by FHEL), towards conversion of
outstanding working capital loan taken from CONCOR by Fresh & Healthy
Enterprises Ltd.
22 a) Unlessotherwisestated,thefiguresareinrupeescrore.
b) Previous year's figures have been recast/regrouped/ rearranged
wherever considered necessary to conform to this year's classification.
Mar 31, 2014
(Rs. in crore)
2013-14 2012-13
a) In relation to joint ventures 150.30 161.08
b) On Capital Account 481.66 459.15
c) On Revenue Account 4.23 2.99
ii). Contingent liabilities not provided for:
a. Outstanding Letters of Credit & bank
guarantees 51.43 101.86
b. Bank guarantees/bid bonds for joint
ventures & Subsidiaries 249.35 332.85
c. Claims against the Company not
acknowledged as debt, net of advances/
payments under protest, arbitration,
court orders, etc.
[include claims of Rs. 318.24 crore
(previous year: Rs. 362.45 crore)
pending in arbitration/courts pursuant
to arbitration awards] 869.63 844.34
Contingent liabilities are disclosed to the extent of claims received
and include an amount of Rs. 13.96 crore (previous year: Rs. 16.29 crore),
which may be reimbursable to the company. Any further interest demand
on the basic claim is not considered where legal cases are pending, as
the claim itself is not certain. No provision has been made for the
contingent liabilities stated above, as on the basis of information
available, careful evaluation of facts and past experience of legal
aspects of the matters involved, it is not probable that an outflow of
future economic benefits will take place.
d. As per assessment orders under section 143(3) of the Income Tax
Act, 1961, the Assessing Officer (AO) disallowed certain claims of the
company, mainly deduction under section 80IA in respect of Rail System
for assessment years 2003- 04 to 2007-08 & 2009-10 to 2011-12 and
Inland Ports (ICDs/CFSs) for assessment years 2003-04 to 2011-12. In
appeal, for AY 2003-04 to 2007-08 & 2009-10, deduction for Rail System
has been allowed by CIT (A). On the matter of deduction for Inland
Ports, same has been allowed by the Hon''ble Delhi High Court for AY
2003-04 to 2005-06, by ITAT/Delhi for AY 2007-08, by CIT (A) for AY
2009-10 and for AY 2006-07, the matter has been referred to Delhi Bench
of ITAT by Special Bench of ITAT/Mumbai giving a verdict that ICDs/CFSs
set up by the company are Inland Ports. In appeal, for AY 2008-09, the
decision of AO on the issue of disallowance of Inland Port deduction
has been upheld by CIT (A) & the company has filed appeal against his
orders with Hon''ble ITAT/Delhi. Appeal for AY 2010-11 and AY 2011-12 on
the issue of disallowance of Rail System and Inland Ports deduction is
pending with CIT (A). For AY 2006-07 & 2007-08, I.T. department has
filed belated appeal(s) with the Hon''ble ITAT/Delhi against the
order(s) passed by CIT (A), vide which relief had been granted in
favour of the company with regard to claim of deduction u/s 80IA of the
Act for Rail System. Special Leave Petition has been filed by the I.T.
department before the Hon''ble Supreme Court on the issue of deduction
of Inland Ports for AY 2003-04 and AY 2005-06 against the order passed
by Hon''ble Delhi High Court in favour of the company and the same has
been admitted. Further, I.T. department has filed appeal with
ITAT/Delhi against the order of CIT(A) for AY 2009-10 on the issue of
deduction for Inland Ports and Rail System.
e. As per assessment orders under section 147/143(3) of the Income Tax
Act, 1961, the Assessing Officer (AO) disallowed certain claims of the
company for assessment years 2004-05 & 2007-08. In this regard, while
the appeal for AY 2007-08 has been allowed in part, appeal for AY
2004-05 has been allowed in full by CIT (A). For AY 2004-05, I.T.
department has filed appeal and for AY 2007-08, company has filed
appeal with the Hon''ble ITAT/Delhi against the orders passed by CIT
(A). Demand for AY 2007-08 has been further enhanced by AO vide order
passed u/s 154/147/143(3). Appeal filed by the company against the
order of AO u/s 154/147/143(3) is pending with CIT (A).
f. For AY 2006-07, appeal filed with CIT (A) against the order of AO
imposing penalty u/s 271(1) (c) has been decided in company''s favour.
However, I.T. department has filed appeal before the Hon''ble ITAT/Delhi
against the order of CIT (A).
iii). The company entered into a contract for supply of 1320 wagons by
Hindustan Engineering and Industries Ltd (HEI). After the supply of
1050 wagons, the contract was terminated during FY 2004-05, for
non-fulfilment of obligations on the part of HEI. Company invoked the
bank guarantee of Rs. 5.99 crore for refund of unadjusted advance and Rs.
7.37 crore towards performance guarantee for non-fulfilment of terms of
contract on the part of HEI. The matter was referred to an Arbitration
Tribunal comprising three members, which has given majority award
amounting to Rs. 39.58 crore and interest @15% from date 22.05.2005 to
13.11.2013 amounting to Rs. 50.37 crore, totalling to Rs. 89.95 crore 18%
interest p.a. from the date of award to the date of payment in favour
of M/s Hindustan Engineering Industries on 13.11.2013. Minority award
by Co- Arbitrator has been given amounting to Rs. 14.61 crore in favour
of the company. The award given to HEI has been challenged by the
company under section 34 of Arbitration and Conciliation Act, 1996 in
the High Court of Delhi at New Delhi on dtd. 07.03.2014.
iv). The Company has executed "Custodian cum Carrier Bonds" of Rs.
26,843.00 crore (previous year: Rs. 25,313.05 crore) in favour of Customs
Department under the Customs Act, 1962. These bonds are of continuing
nature, for which claims may be lodged by the Custom Authorities.
v). (a) Tax provision during the year has been worked after
considering tax deduction of Rs. 125.59 crore under section 80IA of the
Income Tax Act, 1961 in respect of Rail System & Inland Container
Depots (Inland Ports). (b) As per ''Guidance Note on accounting for
credit available in respect of Minimum Alternative Tax under the Income
Tax
Act,1961'' issued by ICAI, income tax provision for current year has
been worked after availing MAT credit of Rs. 9.42 crore.
Unabsorbed MAT credit of Rs. 32.63 crore has not been recognised as an
asset, as there is no convincing evidence that the company will pay
normal tax during the specified period.
vi). During the year, the company realised Rs. 17.86 crore (previous
year: Rs. 22.00 crore) (net of auction expenses) from auction of
undelivered containers. Out of the amount realized, Rs. 4.66 crore
(previous year: Rs. 6.34 crore) is paid/payable as custom duty, Rs. 12.01
crore (previous year: Rs. 14.73 crore) has been recognised as income and
the balance of Rs. 1.19 crore (previous year: Rs. 0.93 crore) has been
shown under Current Liabilities.
vii). (a) Current liabilities include Rs. 14.38 crore (previous year: Rs.
8.68 crore) towards unutilised capital grant received for acquisition
of specific fixed assets in CONCOR/business arrangements. Amount of NIL
(previous year: Rs. 1.60 crore) towards capital grants received &
utilised during the year for acquisition of fixed assets has been
deducted from the gross value of fixed assets. (b) Current liabilities
include Rs. 1.82 crore (previous year: Rs. 6.10 crore) towards unutilised
revenue grant received from National Horticulture Board for offsetting
the freight for the Horticulture Projects. Amount of Rs. 4.28 crore
(Previous year: Rs. 1.90 crore) towards revenue grants received &
utilised during the year by offsetting the freight for the Horticulture
Projects has been recognized as Rail Freight Income.
ix). The estimated claim realized/realizable and provision for loss of
wagons totalling Rs. 1.36 crore in the depreciation is adjusted during
the year.
x). Works carried out by Railways/its units for the company are
accounted for on the basis of correspondence /estimates/advice etc.
xii). Remittance in foreign currency for dividend:
The company has not remitted any amount in foreign currency on account
of dividend during the year.
xv). Provisions relating to disclosure of information as required by
Part II of Revised Schedule VI to the Companies Act, 1956 in case of
companies other than service companies are not applicable, as the
company has no manufacturing, trading and financing activities.
xvi).Company is entitled for Served From India Scheme (SFIS) of the
Government of India. SFIS scrips under the scheme can be utilized
within 24 months from the date of issue of scrips for duty credit for
import of capital goods & payment of excise duty on domestic purchases.
xvii).The Company has, with effect from 1st April, 2007, adopted
Accounting Standard 15, Employee Benefits (revised 2005), issued by the
Institute of Chartered Accountants of India (ICAI). The disclosures as
required as per the above accounting standard are as under:
(a) Defined Contribution plans:
1. Employers'' contribution to Provident Fund
2. Employers'' contribution to Employees Pension scheme, 1995
Company pays fixed contribution to Provident Fund at predetermined
rates to a separate trust, which invests the fund in permitted
securities. The contribution to the fund for the period is recognized
as expense and is charged to the profit & loss account. The obligation
of the company is limited to such fixed contribution. However, the
trust is required to pay a minimum rate of interest on contributions to
the members as specified by Government. As per actuarial valuation such
liability is NIL as on 31.03.2014 (Previous Year: NIL). During the
year, the company has recognized the following amounts in the profit
and Loss Account.
1. Employers'' contribution to Provident Fund  Rs. 5.95 crore (previous
year: Rs. 5.05 crore)
2. Employers'' contribution to Employees Pension scheme, 1995 Â Rs. 0.89
crore (Previous year: Rs. 0.82 crore)
(b) Defined benefit plans: Gratuity:
The Company has a defined benefit gratuity plan, which is regulated as
per the provisions of Payment of Gratuity Act, 1972. The scheme is
funded by the company and is managed by a separate trust. The liability
for the same is recognized on the basis of actuarial valuation.
Leave Travel Concession:
The company provides LTC facility to its employees, which is regulated
in accordance with the policy framed in this regard. The liability for
the same is recognized on the basis of actuarial valuation.
Leave encashment:
The company has a defined benefit leave encashment plan for its
employees. Under this plan, they are entitled to encashment of earned
leaves and medical leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave
encashment have been provided on the basis of actuarial valuation.
Post Retirement Medical Benefits:
The company has formed a medical trust, which takes care of medical
needs of its employees after their retirement. Their entitlement for
reimbursement of medical expenses is regulated as per the policy in
vogue. The liability for the same is recognized on the basis of
actuarial valuation.
Long-term medical liability:
As per the medical policy in vogue, employees are entitled for
reimbursement of medical expenses equivalent to one-month basic pay
plus DA in a calendar year. If in any particular year, the employee
does not spend the full amount, the balance is carried forward to the
subsequent years. The liability for the same is recognized on the basis
of actuarial valuation.
Mar 31, 2013
I). Contingent liabilities not provided for:
a) Outstanding Letters of Credit & bank guarantees 101.86 45.88
b) Bank guarantees/bid bonds for joint ventures
& Subsidiaries 332.85 408.83
c) Claims against the Company not acknowledged
as debt, net of advances/payments under protest,
arbitration, court orders, etc.
[include claims of Rs. 362.45 crore (previous
year: Rs. 298.88 crore) pending in arbitration/
courts pursuant to arbitration awards] 844.34 804.32
Contingent liabilities are disclosed to the extent of claims received
and include an amount of Rs. 16.29 crore (previous year: Rs.12.42
crore), which may be reimbursable to the company. Any further interest
demand on the basic claim is not considered where legal cases are
pending, as the claim itself is not certain. No provision has been made
for the contingent liabilities stated above, as on the basis of
information available, careful evaluation of facts and past experience
of legal aspects of the matters involved, it is not probable that an
outflow of future economic benefits will take place.
d) As per assessment orders under section 143(3) of the Income Tax Act,
1961, the Assessing Officer (AO) disallowed certain claims of the
company, mainly deduction under section 80IA in respect of Rail System
for assessment years 2003-04 to 2007-08 & 2009-10 to 2010-11 and Inland
Ports (ICDs/CFSs) for assessment years 2003-04 to 2010-11. In appeal,
for AY 2003-04 to 2007-08 & 2009-10, deduction for Rail System has been
allowed by CIT (A). On the matter of deduction for Inland Ports, same
has been allowed by the Hon''ble Delhi High Court for AY 2003-04 to
2005-06, by CIT (A) for AY 2009-10 and for AY 2006-07 & 2007-08, the
matter has been referred to Delhi Bench of iTaT by Special Bench of
ITAT/Mumbai giving a verdict that ICDs/CFSs set up by the company are
Inland Ports. In appeal, for AY 2008-09, the decision of AO on the
issue of disallowance of Inland Port deduction has been upheld by CIT
(A) & the company has filed appeal against his orders with Hon''ble
ITAT. Appeal for AY 2010-11 on the issue of disallowance of Rail System
and Inland Ports deduction is pending with CIT (A). For AY 2006-07 &
2007-08, department has filed belated appeal(s) with the Hon''ble ITAT,
Delhi against the order(s) passed by CIT (A), vide which relief had
been granted in favour of the company with regard to claim of deduction
u/s 80IA of the Act for Rail System. SLP has been filed by the
department before the Hon''ble Supreme Court on the issue of deduction
of Inland Ports for AY 2003-04 to AY 2005-06 against the order passed
by Hon''ble Delhi High Court in favour of the company and the same has
been admitted. Further, department has filed appeal with ITAT/Delhi
against the order of CIT(A) for AY 2009-10 on the issue of deduction
for Inland Ports and Rail System.
e) As per assessment orders under section 147/143(3) of the Income Tax
Act, 1961, the Assessing Officer (AO) disallowed certain claims of the
company for assessment years 2004-05 & 2007-08. In this regard, appeal
for AY 2004-05 has been allowed by ClT (A) and appeal for aY 2007-08 is
pending with CIT (A). For AY 2004-05, department has filed appeal with
the Hon''ble ITAT, Delhi against the order passed by CIT (A).
f) For AY 2006-07 & 2007-08, appeals filled with CIT (A) against the
orders of AO imposing penalty u/s 271(1)
(c) have been decided in company''s favour. However, department has
filed appeal before the Hon''ble ITAT against the order of CIT (A).
ii). The company entered into a contract for supply of 1320 wagons by
Hindustan Engineering and Industries Ltd (HEI). After the supply of
1050 wagons, the contract was terminated during FY 2004-05, for
non-fulfilment of obligations on the part of HEI. Company invoked the
bank guarantee of Rs. 5.99 crore for refund of unadjusted advance and
Rs. 7.37 crore towards performance guarantee for non-fulfilment of
terms of contract on the part of HEI. The matter has been referred to
an Arbitration Tribunal and arbitration proceedings are in progress.
The amount realized from invocation of performance guarantee stands
credited to "Current Liabilities".
iii). The Company has executed "Custodian cum Carrier Bonds" of Rs.
25313.05 crore (previous year: Rs. 22,800.28 crore) in favour of
Customs Department under the Customs Act, 1962. These bonds are of
continuing nature, for which claims may be lodged by the Custom
Authorities.
iv). (a) Tax provision during the year has been worked after
considering tax deduction of Rs. 99.98 crore under section 80IA of the
Income Tax Act, 1961 in respect of Rail System & Inland Container
Depots (Inland Ports). Tax provision during FY 2011-12 was, however,
worked in accordance with the provisions laid down in section 115JB
ofthe I.T Act, 1961.
(b) As per ''Guidance Note on accounting for credit available in respect
of Minimum Alternative Tax under the Income Tax Act,1961'' issued by
ICAI, income tax provision for current year has been worked after
availing MAT credit of Rs. 30.63 crore. Unabsorbed MAT credit of Rs.
35.21 crore has not been recognised as an asset, as there is no
convincing evidence that the company will pay normal tax during the
specified period.
v). During the year, the company realised Rs. 22.00 crore (previous
year: Rs. 5.83 crore) (net of auction expenses) from auction of
undelivered containers. Out of the amount realized, Rs. 6.34 crore
(previous year: Rs.1.34 crore) is paid/payable as custom duty, Rs.
14.73 crore (previous year: Rs. 3.96 crore) has been recognised as
income and the balance of Rs. 0.93 crore (previous year: Rs. 0.53
crore) has been shown under Current Liabilities.
vi). (a) Current liabilities include Rs. 8.68 crore (previous year:
Rs. 2.77 crore) towards unutilised capital grant received for
acquisition of specific fixed assets in CONCOR/business arrangements.
Amount of Rs. 1.60 crore (previous year: Rs. 4.01 crore) towards
capital grants received & utilised during the year for acquisition of
fixed assets has been deducted from the gross value of fixed assets.
(b) Current liabilities include Rs. 6.10 crore (previous year: Nil)
towards unutilised revenue grant received from National Horticulture
Board for offsetting the freight for the Horticulture Projects. Amount
of Rs. 1.90 crore (previous year:Nil) towards revenue grants received &
utilised during the year by offsetting the freight for the Horticulture
Projects has been recognized as Rail Freight Income.
vii). Wagons and containers damaged in an accident have not been written
off pending settlement of claim. The estimated claim
realized/realizable and provision for loss of wagons totalling to Rs.
1.36 crore (Previous year: Rs. 1.36 crore) is continued to be adjusted
in the accumulated depreciation since FY 2008-09.
viii). Works carried out by Railways/its units for the company are
accounted for on the basis of correspondence / estimates/advice etc.
ix). Remittance in foreign currency for dividend:
The company has not remitted any amount in foreign currency on account
of dividend during the year.
x). During the year, company changed its accounting policy with regard
to capitalization of stamp duty paid for acquisition of land. Stamp
duty, which earlier was capitalized at the time of execution of
conveyance deed, is now provided for at the time of capitalization of
land at the stamp duty rates prevailing on such date. Consequent upon
such change, fixed assets have increased by Rs. 5.34 crore with
corresponding increase in current liabilities.
xi). Provisions relating to disclosure of information as required by
Part II of Revised Schedule VI to the Companies Act, 1956 in case of
companies other than service companies are not applicable, as the
company has no manufacturing, trading and financing activities.
xii). Company is entitled for Served From India Scheme (SFIS) of the
Government of India. SFIS scrips under the scheme can be utilized
within two years from the date of issue of scrips for duty credit for
import of capital goods & payment of excise duty on domestic purchases.
xiii).The Company has, with effect from 1st April, 2007, adopted
Accounting Standard 15, Employee Benefits (revised 2005), issued by the
Institute of Chartered Accountants of India (ICAI). The disclosures as
required as per the above accounting standard are as under:
(a) Defined Contribution plans:
1. Employers'' contribution to Provident Fund
2. Employers'' contribution to Employees Pension scheme, 1995
Company pays fixed contribution to Provident Fund at predetermined
rates to a separate trust, which invests the fund in permitted
securities. The contribution to the fund for the period is recognized
as expense and is charged to the profit & loss account. The obligation
of the company is limited to such fixed contribution. However, the
trust is required to pay a minimum rate of interest on contributions to
the members as specified by Government. As per actuarial valuation such
liability is NIL as on 31.03.2013(Previous Year: NIL). During the year,
the company has recognized the following amounts in the profit and Loss
Account.
1. Employers'' contribution to Provident Fund Rs. 5.05 crore (previous
year: Rs. 4.36crore)
2. Employers'' contribution to Employees Pension scheme, 1995 Rs. 0.82
crore (Previous year: Rs. 0.84 crore)
(b) Defined benefit plans:
Gratuity:
The Company has a defined benefit gratuity plan, which is regulated as
per the provisions of Payment of Gratuity Act, 1972. The scheme is
funded by the company and is managed by a separate trust. The liability
for the same is recognized on the basis of actuarial valuation.
Leave Travel Concession:
The company provides LTC facility to its employees, which is regulated
in accordance with the policy framed in this regard. The liability for
the same is recognized on the basis of actuarial valuation.
Leave encashment:
The company has a defined benefit leave encashment plan for its
employees. Under this plan, they are entitled to encashment of earned
leaves and medical leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave
encashment have been provided on the basis of actuarial valuation.
Post Retirement Medical Benefits:
The company has formed a medical trust, which takes care of medical
needs of its employees after their retirement. Their entitlement for
reimbursement of medical expenses is regulated as per the policy in
vogue. The liability for the same is recognized on the basis of
actuarial valuation.
Long-term medical liability:
As per the medical policy in vogue, employees are entitled for
reimbursement of medical expenses equivalent to one-month basic pay
plus DA in a calendar year. If in any particular year, the employee
does not spend the full amount, the balance is carried forward to the
subsequent years. The liability for the same is recognized on the basis
of actuarial valuation.
xiv). Segment Information as per Accounting Standard-17:
(a) Primary Segments:
The company is organized on All-India basis into two major operating
divisions- EXIM and Domestic. The divisions are the basis on which the
company reports its primary segment information. Both EXIM and Domestic
divisions of the company are engaged in handling, transportation &
warehousing activities.
Segment revenue and expenses directly attributable to EXIM and Domestic
segments are allocated to the two segments. Joint revenue and expenses
have been allocated on a reasonable basis. Segment assets include all
operating assets used by a segment and consist principally of
inventories, sundry debtors, cash & bank balances, loans & advances,
other current assets and fixed assets net of provisions. Similarly,
segment liabilities include all operating liabilities and consist
principally of sundry creditors, advance from customers, other
liabilities and provisions. Segment assets and liabilities do not,
however, include provisions for taxes. Joint assets & liabilities have
been allocated to segments on a reasonable basis.
xv). Related Party Disclosures as per Accounting Standard-18:
a) Joint Ventures:
1. Star Track Terminals Pvt. Ltd.
2. Albatross Inland Ports Pvt. Ltd.
3. Gateway Terminals India Pvt. Ltd.
4. Himalayan Terminals Pvt. Ltd. (Foreign Joint Venture)
5. HALCON (A business arrangement)
6. India Gateway Terminal Pvt. Ltd.
7. Infinite Logistics Solutions Pvt. Ltd.
8. Hind CONCOR Terminals (Dadri) Pvt. Ltd.
9. Container Gateway Limited
10. Allcargo Logistics Park Pvt. Ltd.
11. CONYK Cartrac Pvt. Ltd.
12. CMA-CGM Logistics Park (Dadri) Pvt. Ltd.
b) Subsidiaries:
Fresh and Healthy Enterprises Ltd. (wholly owned), CONCOR Air Ltd.
(wholly owned) and SIIDCUL CONCOR Infra Company Ltd.(partly owned)
c) Key Management Personnel:
Whole Time Directors:
1. Anil K. Gupta, CMD w.e.f. 5.03.2013 (MD upto 4.03.2013)
2. Shahnawaz Ali, Director (Domestic) upto 31.01.2013
3. P. Alli Rani, Director (Finance)
4. Harpreet Singh, Director (Projects & Services)
5. Yash Vardhan, Director (IM&O)
Nominated/Independent Directors:
1. K. K. Srivastava, Chairman (upto 05.03.2013)
2. A. S. Upadhyay (upto 18.05.2012)
3. Manoj Akhouri (w.e.f. 14.06.2012)
4. Dr. A. K. Bandyopadhyay
5. Dr. Kausik Gupta
6. Lt. Gen. (Retd.) Arvind Mahajan
7. S. M. Singla (upto 13.05.2011)
8. M. S. Khan (upto 13.05.2011)
9. Sudhir Mathur (w.e.f. 25.09.2012)
10. Pradeep Bhatnagar (w.e.f. 06.03.2013)
11. Deepak Gupta (w.e.f. 06.03.2013)
12. M. P. Shorawala (w.e.f. 06.03.2013)
In the above statement:
- Previous year figures in brackets are audited.
- Current year figures are un-audited.
- * Accounts for current year are upto 31.12.2012.
- # Previous year figures are audited for year ended 16th July, 2012.
- ## Accounts for current year are upto 18.07.2012.
c) Accounts for current year of SIIDCUL CONCOR Infra Company Ltd. not
available as the first financial year of the company will be from the
date of its incorporation i.e. 21.03.2013 to 31.03.2014 as per its BOD
resolution dated 23.03.2013.
xvi).In the opinion of the management, during the year there are no
indications that impairment of any asset has taken place. Accordingly,
no provision for impairment of assets is required as per Accounting
Standard 28.
xvii). Pending issuance of notification under Section 441A of the
Companies Act, 1956, no provision has been made towards cess on the
turnover of the company.
Mar 31, 2012
Contingent assets are not recognized in the accounts.
i. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for (Net of advances):
(Rs. in Crore)
ii. Contingent liabilities not provided for:
a) Outstanding Letters of Credit & bank guarantees 45.88 39.56
b) Bank guarantees/bid bonds for joint ventures 106.30 126.32
c) Claims against the Company not acknowledged as debt, net of
advances/payments under protest, arbitration, court orders, etc.
[include claims of Rs.344.19 crore (previous year: Rs. 356.68 crore)
pending in arbitration/courts pursuant to
arbitration awards] 804.32 769.50
Contingent liabilities are disclosed to the extent of claims received
and include an amount of Rs. 12.42 crore (previous year: Rs.11.61 crore),
which may be reimbursable to the company. Any further interest demand
on the basic claim is not considered where legal cases are pending, as
the claim itself is not certain. No provision has been made for the
contingent liabilities stated above, as on the basis of information
available, careful evaluation of facts and past experience of legal
aspects of the matters involved, it is not probable that an outflow of
future economic benefits will take place.
d) As per assessment orders under section 143(3) of the Income Tax Act,
1961, the Assessing Officer (AO) disallowed certain claims of the
company, mainly deduction under section 80IA in respect of Rail System
for assessment years 2003-04 to 2007-08 & 2009-10 and Inland Ports
(ICDs/CFSs) for assessment years 2003-04 to 2009-10 and raised demands
of tax and interest totalling to Rs.253.73 crore. In appeal, for AY
2003-04 to 2007-08, CIT (A) allowed claim u/s 80IA towards Rail System,
whereas, for Inland Ports, the claim has been disallowed. On this
matter, the decision of CIT (A) has been upheld by ITAT for AY 2003-04
to 2005-06 & the company has already filed appeal(s) against the orders
of ITAT in Hon'ble Delhi High Court. On the similar issue for AY
2006-07 & 2007-08, the decision of AO has been upheld by CIT (A) & the
company has filed appeal(s) against the orders of CIT (A) with Hon'ble
ITAT, Delhi, which have now been transferred to Special Bench of ITAT,
Mumbai, where CONCOR has become an intervener, in the case of Allcargo
Global logistics Ltd. on the similar issue. For AY 2008-09, the
decision of AO on the issue of disallowance of Inland Port deduction
has been upheld by CIT (A) & the company has filed appeal against his
orders with Hon'ble ITAT. Appeal for AY 2009-10 on the issue of
disallowance of Rail System and Inland Ports deduction is pending with
CIT (A).
For AY 2006-07 and 2007-08, department has filed belated appeal(s) with
the Hon'ble ITAT, Delhi against the order(s) passed by CIT (A), vide
which relief had been granted in favour of the assessee corporation
with regard to claim of deduction u/s 80IA of the Act for 'rail system'
and excess depreciation claimed on computer peripherals.
e) CIT (A) upheld the orders of AO imposing penalty of Rs. 26.70 crore
against the company's claim of deduction in respect of Inland Ports for
AY 2003-04 to 2005-06. Appeal(s) filed with the Hon'ble ITAT, Delhi
against the above orders of CIT (A) have been decided in company's
favour. However, the decision of Hon'ble ITAT, Delhi in these cases has
been challenged by the department at Hon'ble Delhi High Court. On the
similar issue for AY 2006-07 & 2007-08, appeals filled with CIT (A)
against the orders of AO imposing penalty of Rs. 41.94 crore have also
been decided in company's favour. However, department has filed appeal
before the Hon'ble ITAT against the order of CIT (A).
iii. The company entered into a contract for supply of 1320 wagons by
Hindustan Engineering and Industries Ltd
(HEI). After the supply of 1050 wagons, the contract was terminated
during FY 2004-05, for non-fulfilment of obligations on the part of
HEI. Company invoked the bank guarantee of Rs. 5.99 crore for refund of
unadjusted advance and Rs. 7.37 crore towards performance guarantee for
non-fulfilment of terms of contract on the part of HEI. The matter has
been referred to an Arbitration Tribunal and arbitration proceedings
are in progress. The amount realized from invocation of performance
guarantee stands credited to "Current LiabilitiesÃ.
iv. The Company has executed "Custodian cum Carrier Bonds" of Rs.
22800.28 crore (previous year: Rs. 22,169.28 crore) in favour of Customs
Department under the Customs Act, 1962. These bonds are of continuing
nature, for which claims may be lodged by the Custom Authorities.
v. (a) Tax provision during the year has been worked in accordance
with the provisions laid down in section 115JB of the I.T Act, 1961.
(b) As per 'Guidance Note on accounting for credit available in respect
of Minimum Alternative Tax under the Income Tax Act,1961' issued by
ICAI, MAT credit has not been recognized as an asset, as there is no
convincing evidence that the company will pay normal tax during the
specified period.
vi. During the year, the company realised Rs. 5.83 crore (previous year:
Rs. 9.32 crore) (net of auction expenses) from auction of undelivered
containers. Out of the amount realized, Rs. 1.34 crore (previous year: Rs.
1.71 crore) is paid/payable as custom duty, Rs. 3.96 crore (previous
year: Rs. 6.35 crore) has been recognised as income and the balance of Rs.
0.53 crore (previous year: Rs. 1.26 crore) has been shown under Current
Liabilities.
vii. Current liabilities include Rs. 2.77 crore (previous year: Rs. 0.23
crore) towards unutilised grant received for acquisition of specific
fixed assets in CONCOR/business arrangements. Amount of Rs. 4.01 crore
(previous year: Rs. 4.25 crore) towards capital grants received &
utilised during the year for acquisition of fixed assets has been
deducted from the gross value of fixed assets.
viii. Wagons and containers damaged in an accident have not been written
off pending settlement of claim. The estimated claim
realized/realizable and provision for loss of wagons totalling to Rs.
1.36 crore (Previous year: Rs. 1.36 crore) is continued to be adjusted in
the accumulated depreciation since FY 2008-09.
ix. Works carried out by Railways/its units for the company are
accounted for on the basis of correspondence / estimates/advice etc.
x. Remittance in foreign currency for dividend: The company has not
remitted any amount in foreign currency on account of dividend during
the year.
xi. The impact of pay revision in respect of custom cost recovery &
security expenses, etc. payable to the Govt. is being accounted for as
and when the claims are finalized.
xii. Provisions relating to disclosure of information as required by
Part II of Revised Schedule VI to the Companies Act, 1956 in case of
companies other than service companies are not applicable, as the
company has no manufacturing, trading and financing activities.
xiii. Company is entitled for Served From India Scheme (SFIS) of the
Government of India. SFIS scrips under the scheme can be utilized
within two years for duty credit for import of capital goods & payment
of excise duty on domestic purchases.
xiv. The Company has, with effect from 1st April, 2007, adopted
Accounting Standard 15, Employee Benefits (revised 2005), issued by the
Institute of Chartered Accountants of India (ICAI). The disclosures as
required as per the above accounting standard are as under:
a) Defined Contribution plans:
1. Employers' contribution to Provident Fund
2. Employers' contribution to Employees Pension scheme, 1995
Company pays fixed contribution to Provident Fund at predetermined
rates to a separate trust, which invests the fund in permitted
securities. The contribution to the fund for the period is recognized
as expense and is charged to the profit & loss account. The obligation
of the company is limited to such fixed contribution. However, the
trust is required to pay a minimum rate of interest on contributions to
the members as specified by Government. During the year, the company
has recognized the following amounts in the profit and Loss Account.
1. Employers' contribution to Provident Fund à Rs. 4.36 crore (previous
year: Rs.3.93 crore)
2. Employers' contribution to Employees Pension scheme, 1995 Ã Rs. 0.84
crore (Previous year: Rs. 0.79 crore)
(b) Defined benefit plans: Gratuity:
The Company has a defined benefit gratuity plan, which is regulated as
per the provisions of Payment of Gratuity Act, 1972. The scheme is
funded by the company and is managed by a separate trust. The liability
for the same is recognized on the basis of actuarial valuation.
Leave Travel Concession:
The company provides LTC facility to its employees, which is regulated
in accordance with the policy framed in this regard. The liability for
the same is recognized on the basis of actuarial valuation.
Leave encashment:
The company has a defined benefit leave encashment plan for its
employees. Under this plan, they are entitled to encashment of earned
leaves and medical leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave
encashment have been provided on the basis of actuarial valuation.
Post Retirement Medical Benefits:
The company has formed a medical trust, which takes care of medical
needs of its employees after their retirement. Their entitlement for
reimbursement of medical expenses is regulated as per the policy in
vogue. The liability for the same is recognized on the basis of
actuarial valuation.
Long-term medical liability
As per the medical policy in vogue, employees are entitled for
reimbursement of medical expenses equivalent to one-month basic pay
plus DA in a calendar year. If in any particular year, the employee
does not spend the full amount, the balance is carried forward to the
subsequent years. The liability for the same is recognized on the basis
of actuarial valuation.
xv. Segment Information as per Accounting Standard-17:
a) Primary Segments:
The company is organized on All-India basis into two major operating
divisions- EXIM and Domestic. The divisions are the basis on which the
company reports its primary segment information. Both EXIM and Domestic
divisions of the company are engaged in handling, transportation &
warehousing activities.
Segment revenue and expenses directly attributable to EXIM and Domestic
segments are allocated to the two segments. Joint revenue and expenses
have been allocated on a reasonable basis. Segment assets include all
operating assets used by a segment and consist principally of
inventories, sundry debtors, cash & bank balances, loans & advances,
other current assets and fixed assets net of provisions. Similarly,
segment liabilities include all operating liabilities and consist
principally of sundry creditors, advance from customers, other
liabilities and provisions. Segment assets and liabilities do not,
however, include provisions for taxes. Joint assets & liabilities have
been allocated to segments on a reasonable basis.
Mar 31, 2011
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for (Net of advances) :
(Rs. in Crore)
2010-11 2009-10
a) In relation to joint ventures 20.26 11.97
b) Others 249.56 188.74
2. Contingent liabilities not provided for:
a) Outstanding Letters of Credit & bank
guarantees 39.56 44.30
b) Bank guarantees/bid bonds for joint
ventures 126.32 167.92
c) Claims against the Company not acknowledged as debt, net of
advances/payments under protest, arbitration, court orders, etc.
[include claims of Rs. 356.68 crore (previous year: Rs. 311.92 crore)
pending in arbitration/courts pursuant to arbitration awards] 769.50
720.38 Contingent liabilities are disclosed to the extent of claims
received and include an amount of Rs. 11.61 crore (previous year: Rs.10.56
crore), which may be reimbursable to the company. Any further interest
demand on the basic claim is not considered where legal cases are
pending, as the claim itself is not certain. No provision has been made
for the contingent liabilities stated above, as on the basis of
information available, careful evaluation of facts and past experience
of legal aspects of the matters involved, it is not probable that an
outflow of future economic benefits will take place.
d) As per assessment orders under section 143(3) of the Income Tax Act,
1961, the Assessing Officer (AO) disallowed certain claims of the
company, mainly deduction under section 80IA in respect of Rail System
for assessment years 2003-04 to 2007-08 and Inland Ports (ICDs/CFSs)
for assessment years 2003-04 to 2008-09 and raised demands of tax and
interest totalling to Rs. 423.30 crore. In appeal, for AY 2003-04 to
2007-08, CIT (A) allowed claim u/s 80IA towards Rail System, whereas,
for Inland Ports, the claim has been disallowed. On this matter, the
decision of CIT (A) has been upheld by ITAT for AY 2003-04 to 2005- 06
& the company has already filed appeal(s) against the orders of ITAT in
Hon'ble Delhi High Court. On the similar issue for AY 2006-07 &
2007-08, the decision of AO has been upheld by CIT (A) & the company
has now filed appeal(s) against the orders of CIT (A) in Hon'ble ITAT.
Appeal for AY 2008-09 is pending with CIT (A). The Hon'ble Committee on
Disputes (COD) has granted permission to the company for persuing
appeal on the matter of ICD deduction u/s 80IA before the Hon'ble Delhi
High Court for AY 2003-04 to 2005-06, while the department's
application seeking permission to persue appeal on the matter of rail
system deduction u/s 80IA before the Hon'ble Delhi High Court for AY
2003-04 to 2005-06 has been rejected.
e) CIT (A) upheld the orders of AO imposing and thereby recovering
penalty of Rs. 26.70 crore against the company's claim of deduction in
respect of Inland Ports for AY 2003-04 to 2005-06. Appeal(s) filed with
the Hon'ble ITAT against the above orders of CIT (A) have been decided
in company's favour vide orders dated 17th June, 2011. On the similar
issue for AY 2006-07 & 2007-08, AO has imposed/recovered a penalty of Rs.
41.94 crore against which the company has filed an appeal with CIT (A).
3. The company entered into a contract for supply of 1320 wagons by
Hindustan Engineering and Industries Ltd (HEI). After the supply of
1050 wagons, the contract was terminated during FY 2004-05, for
non-fulfilment of obligations on the part of HEI. Company invoked the
bank guarantee of Rs. 5.99 crore for refund of unadjusted advance and Rs.
7.37 crore towards performance guarantee for non-fulfilment of terms of
contract on the part of HEI. The matter has been referred to an
Arbitration Tribunal and arbitration proceedings are in progress. The
amount realized from invocation of performance guarantee stands
credited to "Current Liabilities".
4. The Company has executed "Custodian cum Carrier Bonds" of Rs.
22,169.28 crore (previous year: Rs. 20,866.00 crore) in favour of Customs
Department under the Customs Act, 1962. These bonds are of continuing
nature, for which claims may be lodged by the Custom Authorities.
5. As in earlier years, provision for tax for the year is after
considering tax deduction of Rs. 164.64 crore (previous year: Rs. 118.00
crore) under section 80IA of the Income Tax Act, 1961 in respect of
Rail System & Inland Container Depots (Inland Ports).
6. Haulage charges for transportation of containers by rail upto
30.07.2010 were paid on fortnightly basis to Indian Railways at the
rates prescribed by the Ministry of Railways (MOR) from time to time.
However, w.e.f 31.07.2010, Indian Railways have introduced Terminal
Management System (TMS), where the Haulage charges are paid upfront on
generation of Railway Receipts (RRs) from the TMS. Reconciliation of
the amount paid/payable to railway is done on an ongoing basis
periodically and difference, if any, is adjusted in the payments for
the ensuing periods and/or claims is preferred against railways.
7. i) Income from operations consists of revenue from freight,
handling, terminal service charges, demurrage and other operating
income and is net of waivers of Rs. 0.08 crore (previous year: Rs. 0.50
crore).
ii) Terminal & other service charges include expenses for rail freight,
handling, road transportation and other operating expenses. These also
include Rs.14.03 crore (previous year Rs. 14.99 crore) and Rs. 2.67 crore
(previous year Rs. 2.29 crore) towards power & fuel and consumption of
stores & spare parts respectively.
8. i) Loans and Advances include Rs. 1.17 crore (previous year: Rs. 1.11
crore) given to Customs & Port Trust.
ii) Loans to employees include Rs. 0.09 crore (previous year: Rs. 0.12
crore) being amount due from Directors and officers of the company.
Maximum outstanding balance during the year was Rs. 0.11 crore (previous
year: Rs. 0.12 crore).
9. During the year, the company realised Rs. 8.99 crore (previous year:
Rs. 18.22 crore) (net of auction expenses) from auction of undelivered
containers. Out of the amount realized, Rs. 1.71 crore (previous year: Rs.
4.13 crore) is paid/payable as custom duty, Rs. 6.02 crore (previous
year: Rs. 10.25 crore) has been recognised as income and the balance of Rs.
1.26 crore (previous year: Rs. 3.84 crore) has been shown under Current
Liabilities.
10. Depreciation on assets created on leasehold land is provided in
line with the accounting policy of the company irrespective of the land
lease period, as the leases are likely to be renewed/extended.
11. Current liabilities-others includes Rs. 0.23 crore (previous year: Rs.
0.25 crore) towards unutilised grant received for acquisition of
specific fixed assets in CONCOR/business arrangement. Amount of Rs. 4.25
crore (previous year: Rs. 0.38 crore) towards capital grants received &
utilised during the year for acquisition of fixed assets has been
deducted from the gross value of fixed assets.
12. Book Overdraft represents cheques issued by the company pending
clearance against the flexi/other deposits with the banks.
13. During the year 1998-99, the company gave loan of Rs. 2.00 crore to
Indian Railway Welfare Organization (IRWO) at simple interest of 8.5%
p.a. in terms of Presidential Directives received from the Ministry of
Railways. The amount is being repaid as per schedule and the amount of
loan outstanding as at 31.03.2011 is Rs. NIL (previous year: Rs. 0.20
crore).
14. a) During the year, the company changed its accounting policy for
revenue recognition from "Freight, Handling income and related expenses
are accounted for at the time of booking of containers. Terminal
service charges and wharfage are accounted for on receipt/ at the time
of release of containers on completed service contract method" to "Rail
Freight Income & related Expenses are accounted for at the time of
issue of RRs by Indian Railways whereas Road Transportation/Handling
Income & related Expenses are accounted for at the time of booking of
containers. Terminal service charges and wharfage are accounted for on
receipt/at the time of release of containers on "completed service
contract method".
Consequent upon such change, income from operations is lower by Rs.
9.82crores; terminal & other service charges are lower by Rs. 7.60 crore
& net profit before tax is lower by Rs. 2.22 crore.
b) During the year, the company changed its accounting policy related
to amortization of capital expenditure on land not belonging to the
company from "Capital expenditure on land not belonging to the company
is written off to the profit and loss account over its approximate
period of utility or over a relatively brief period not exceeding five
years, whichever is less. For this purpose, land is not considered to
be belonging to the company if the same is not owned or leased/
licensed to the company." to "Capital expenditure on enabling assets,
like roads, culverts & electricity transmissions etc., the ownership of
which is not with the Company are charged off to revenue in the
accounting period of incurrence of such expenditure. However, capital
expenditure on enabling assets, ownership of which rests with the
company and which have been created on land not belonging to the
Company is written off to the P&L Account over its approximate period
of utility or over a period of 5 years, whichever is less. For this
purpose, land is not considered to be belonging to the company, if the
same is not owned or leased/licensed to the company."
Consequent upon such change, depreciation during the year is higher by
Rs. 41.25 lakhs with a matching decline in the profit before tax.
15. (a) Miscellaneous expenses include loss on sale of fixed assets Rs.
94.97 lakhs (Previous Year: Rs. 23.59 lakhs) and exchange fluctuation
(loss) Rs. 0.04 lakhs (previous year: Rs. 0.05 lakhs).
(b) Wagons and containers damaged in an accident have not been written
off pending settlement of claim. The estimated claim
realized/realizable and provision for loss of wagons totalling to Rs.
1.36 crore (Previous year: Rs. 1.36 crore) is continued to be adjusted in
the accumulated depreciation since FY 2008-09.
16. (a) As per the tripartite business arrangement of the company with
Hindustan Aeronautics Ltd. and Mysore Sales International Ltd. for
operating air cargo complex at Bangalore (JWG-ACC), a loss of Rs. 0.45
crore (Previous year: Rs. 0.51 crore) being company's share in the entity
as per audited accounts upto 14th January, 2011 (being the date of exit
by CONCOR) has been accounted for under 'Miscellaneous Expenses.'
Consequent upon such exit, CONCOR's share of investment in the business
arrangement stands debited to "Loans & Advances".
(b) HALCON is a business arrangement of the company with Hindustan
Aeronautics Ltd. for operating an Air Cargo Complex and ICD at Nasik. A
profit of Rs. 0.08 lakhs (Previous year: Rs. 10.89 lakhs) being company's
share in the entity as per unaudited accounts for the year ended 31st
March, 2011 has been accounted for under 'Miscellaneous Income'.
17. Works carried out by Railways/its units for the company are
accounted for on the basis of correspondence / estimates/advice etc.
18. Land license fee paid/payable to the Indian Railways (IR) is
calculated on the basis of number of twenty feet equivalent units
(TEUs) handled in terms of instructions issued by Ministry of Railways
from time to time. The company lodged claim of Rs. 2.82 crore towards
land license fee paid to Indian Railways for internal movement of empty
containers during the years 1999-2000 to 2003-04. The case is being
continuously followed up with Railway authorities for its recovery.
However, as a matter of prudence, the same will be accounted for on
receipt/acceptance.
19. Stores & spare parts include items costing Rs. 2.01 crore (previous
year: Rs. 2.16 crore), which have not been consumed during last three
years. These items by their very nature are essentially to be kept and
are fit for their intended use.
20 Remittance in foreign currency for dividend:
The company has not remitted any amount in foreign currency on account
of dividend during the year.
21. The Company has not received any intimation from the suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 as at the Balance Sheet date and therefore no
such disclosures under the said Act have been made.
22. a) As per Presidential Directives received during FY 2008-09,
Employee's Salaries and Perquisites have been revised w.e.f 1st
January, 2007. Disbursement pursuant to such directives was/is being
made to the eligible employees.
b) Pursuant to DPE circular in respect of 2nd pay committee
recommendations, the company is in the process of framing a pension
scheme for its employees. Pending finalization of the scheme, a
provision of Rs. 4.03 crore
(Previous year: Rs. 0.50 crore) has been made on the basis of actuarial
valuation towards company's contribution to the Scheme.
c) The impact of pay revision in respect of custom cost recovery &
security expenses, etc. payable to the Govt. is being accounted for as
and when the claims are finalized.
23. Provisions relating to disclosure of information as required by
other sub-clauses of Clause-3 of Part-II of Schedule VI to the
Companies Act, 1956, are not applicable, as the company has no
manufacturing activity.
24. During FY 2009-10, company received duty credit entitlement scrips
amounting to Rs. 82.46 crore (Rs. 29.75 crore in May 2009 and Rs. 52.71 crore
in February, 2010) under the Served From India Scheme (SFIS) of the
Govt. of India. As per the scheme, the scrips can be utilized within
two years for duty credit for import of capital goods & payment of
excise duty on domestic purchases. During the current financial year
2010-11, an amount of Rs. 14.24 crore (previous year: Rs. 8.28 crore) has
been utilized for custom duty credit on import of capital goods and Rs.
17.41 crore (Previous year: Rs. 7.87 crore) for excise duty credit on
domestic purchase, leaving a balance of Rs. 34.66 crore as on
31.03.2011.During the year, there is no expired amount, which remained
unutilized (Previous year: Rs. 33.12 crore).
During the current financial year 2010-11, company received additional
SFIS scrips amounting to Rs. 99.18 crore in September 2010; thus leaving
a cumulative balance of Rs. 133.84 crore as on 31.03.2011(Previous year:
Rs. 66.31 crore)
25. The Govt. has imposed cess on building and other construction
works under the provisions of the Delhi Building and Other Construction
Workers (Regulation of Employment and Conditions of Service) Rules,
2002, Building and other Construction Workers Welfare Cess Act, 1996
and Building and Other Construction Workers Cess Rules, 1998. Similar
cess has also been imposed by some other States. During FY 2008-09, a
notice was received from the Labour Department at Delhi for payment of
Rs. 46.05 lakhs towards this cess from 1996 onwards. Since the Gazette
notification for levy of cess has been issued in August 2005, the
liability from that date amounting to Rs. 4.13 Lakh has been deposited in
FY 2008-09, which is recoverable from the contractors.
26. The Company has, with effect from 1st April, 2007, adopted
Accounting Standard 15, Employee Benefits (revised 2005), issued by the
Institute of Chartered Accountants of India (ICAI). The disclosures as
required as per the above accounting standard are as under:
(a) Defined Contribution plans:
(i) Employers' contribution to Provident Fund
(ii) Employers' contribution to Employees Pension scheme, 1995
Company pays fixed contribution to Provident Fund at predetermined
rates to a separate trust, which invests the fund in permitted
securities. The contribution to the fund for the period is recognized
as expense and is charged to the profit & loss account. The obligation
of the company is limited to such fixed contribution. However, the
trust is required to pay a minimum rate of interest on contributions to
the members as specified by Government. During the year, the company
has recognized the following amounts in the profit and Loss Account.
(i) Employers' contribution to Provident Fund Rs. 3.93 crore (previous
year: Rs. 4.42 crore)
(ii) Employers' contribution to Employees Pension scheme, 1995 Rs. 0.79
crore (Previous year: Rs. 0.78 crore)
(b) Defined benefit plans:
Gratuity:
The Company has a defined benefit gratuity plan, which is regulated as
per the provisions of Payment of Gratuity Act, 1972. The scheme is
funded by the company and is managed by a separate trust. The liability
for the same is recognized on the basis of actuarial valuation.
Leave Travel Concession :
The company provides LTC facility to its employees, which is regulated
in accordance with the policy framed in this regard. The liability for
the same is recognized on the basis of actuarial valuation.
Leave Encashment :
The company has a defined benefit leave encashment plan for its
employees. Under this plan, they are entitled to encashment of earned
leaves and medical leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave
encashment have been provided on the basis of actuarial valuation.
Post Retirement Medical Benefits :
The company has formed a medical trust, which takes care of medical
needs of its employees after their retirement. Their entitlement for
reimbursement of medical expenses is regulated as per the policy in
vogue. The liability for the same is recognized on the basis of
actuarial valuation.
Long-term Medical Liability :
As per the medical policy in vogue, employees are entitled for
reimbursement of medical expenses equivalent to one-month basic pay
plus DA in a calendar year. If in any particular year, the employee
does not spend the full amount, the balance is carried forward to the
subsequent years. The liability for the same is recognized on the basis
of actuarial valuation.
27. Segment Information as per Accounting Standard-17:
(a) Primary Segments:
The company is organized on All-India basis into two major operating
divisions- EXIM and Domestic. The divisions are the basis on which the
company reports its primary segment information. Both EXIM and Domestic
divisions of the company are engaged in handling, transportation &
warehousing activities.
Segment revenue and expenses directly attributable to EXIM and Domestic
segments are allocated to the two segments. Joint revenue and expenses
have been allocated on a reasonable basis. Segment assets include all
operating assets used by a segment and consist principally of
inventories, sundry debtors, cash & bank balances, loans & advances,
other current assets and fixed assets net of provisions. Similarly,
segment liabilities include all operating liabilities and consist
principally of sundry creditors, advance from customers, other
liabilities and provisions. Segment assets and liabilities do not,
however, include provisions for taxes. Joint assets & liabilities have
been allocated to segments on a reasonable basis.
28. The disclosure, in terms of clause 32 of the listing agreement is
as under:
a) Loan to wholly owned subsidiary, M/s Fresh & Healthy Enterprises
Ltd. (FHEL): Rs. 28.14 crore (previous year: Rs. 33.64 crore). Maximum
amount outstanding during the year is Rs. 33.64 crore (previous year: Rs.
38.64 crore).
29. a) Unless otherwise stated, the figures are in rupees crores.
b) Previous year's figures have been recast/regrouped/rearranged
wherever considered necessary to conform to this year's classification.
Mar 31, 2010
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for (Net of advances):
(Rs. crore)
2009-10 2008-09
a) In relation to joint ventures 11.97 35.66
b) Others 188.74 147.03
2. Contingent liabilities not provided for:
a) Outstanding Letters of Credit & bank
guarantees 44.30 14.91
b) Bank guarantees/bid bonds for joint
ventures 167.92 220.47
c) Claims against the Company not acknowledged as debt, net of
advances/payments under protest, arbitration, court orders, etc.
[include claims of Rs. 311.92 crore (previous year: Rs. 413.71 crore)
pending in arbitration/courts pursuant to arbitration awards] 720.38
627.06
Contingent liabilities are disclosed to the extent of claims received
and include an amount of Rs.8.88 crore (previous year: Rs. 9.91 crore)
which may be reimbursable to the company. Any further interest demand
on the basic claim is not considered where legal cases are pending, as
the claim itself is not certain. No provision has been made for the
contingent liabilities stated above, as on the basis of information
available, careful evaluation of facts and past experience of legal
aspects of the matters involved, it is not probable that an outflow of
future economic benefits will take place.
d) As per assessment orders under section 143(3) of the Income Tax Act,
1961, the Assessing Officer (AO) disallowed certain claims of the
company, mainly deduction under section 80IA in respect of Rail system
and Inland Container Depots (Inland Ports) for assessment years 2003-04
to 2007-08 and raised demands of tax and interest totalling to Rs. 361.05
crore. The company filed appeals before the Commissioner of Income Tax
(Appeals)[CIT (A)] against the said assessment orders. For AY 2003-04
to AY 2006-07, CIT (A) allowed claim u/s 80IA towards Rail System,
whereas for Inland Ports the claim has been disallowed. The decision of
CIT (A) for80IA deduction has been upheld by Income Tax Appellate
Tribunal (ITAT) for AY 2003-04 to AY 2005-06. The company filed appeals
before the Honble Delhi High Court against the orders of the ITAT for
AY 2003-04 to AY 2005-06. Appeals filed with the Honble Delhi High
Court have been dismissed for want of COD approval, with the liberty to
revive them on grant of such approval. COD has directed to sort out
this matter administratively, which would be examined by them in case
amicable settlement is not reached. The Honble COD has rejected the
departments application seeking permission to persue appeal on the
matter of rail system deduction u/s 80IA before the Honble Delhi High
Court. The companys appeal for AY 2006-07 & AY 2007-08 are pending
with appellate authorities.
e) The Assessing officer (AO) has imposed and recovered from the
refunds due, penalties of Rs. 26.70 crore against the companys claim of
deduction u/s 80IA in respect of Inland Ports for AY 2003-04 to AY
2005-06. The company filed appeals before the CIT (A) against the said
orders. Against the order(s) of CIT (A) confirming levy of penalties,
appeal(s) have been filed with ITAT.
3. a) In the matter of dispute with Cimmco Birla Ltd. (CBL), during
the year, a MOU had been signed between CONCOR and CBL in which it has
been agreed that Rs. 19.88 Crore already paid by CONCOR is towards the
full satisfaction of award & that the respective objections filed before
the Honble Delhi High Court will be withdrawn. Accordingly, the Honble
Delhi High Court has disposed off the petition(s) filed by CBL & CONCOR
and hence nothing is due or receivable from CBL.
b) The company entered into a contract for supply of 1320 wagons by
Hindustan Engineering and Industries Ltd (HEI). After the supply of
1050 wagons, the contract was terminated during FY 2004-05, for non-
fulfilment of obligations on the part of HEI. The company invoked the
bank guarantee of Rs. 5.99 crore for refund of unadjusted advance and Rs.
7.37 crore towards performance guarantee for non-fulfilment of terms of
contract on the part of HEI. The matter has been referred to an
Arbitration Tribunal and arbitration proceedings are in progress. The
amount realized from invocation of performance guarantee stands
credited to "Capital Work In Progress."
4. The Company has executed "Custodian cum Carrier Bonds" of Rs.
20,866.00 crore (previous year: Rs. 19,048.00 crore) in favour of Customs
Department under the Customs Act, 1962. These bonds are of continuing
nature, for which claims may be lodged by the Custom Authorities.
5. As in the earlier years, provision for tax for year is after
considering tax deduction of Rs. 118.00 crore (previous year: Rs. 110.78
crore) under section 80IA of the Income Tax Act, 1961 in respect of
Rail system & Inland Container Depots (Inland Ports).
6. Haulage charges for transportation of containers by rail are paid
on fortnightly basis to Indian Railways at the rates prescribed by the
Ministry of Railways (MOR) from time to time. Reconciliation of the
amount paid/payable is done on an ongoing basis periodically and
difference, if any, is adjusted in the payments for the ensuing
periods.
7. i) Income from operations consists of revenue from freight,
handling, Terminal Service Charges, demurrage and other operating
income and is net of waivers of Rs.0.50 crore (previous year: Rs.0.22
crore).
ii) Terminal & other service charges include expenses for rail freight,
handling, road transportation and other operating expenses.
8. i) Loans and Advances include Rs. 1.11 crore (previous year: Rs. 1.08
crore) given to Customs & Port Trust.
ii) Loans to employees include Rs. 0.12 crore (previous year: Rs. 0.08
crore) being amount due from Directors and officers of the company.
Maximum outstanding balance during the year wasRs. 0.12 crore (previous
year: Rs.0.14 crore).
9. During the year, the company realisedRs. 18.22 crore (previous year:
Rs.13.16 crore) from auction of undelivered containers. Out of the amount
realized, Rs. 4.13 crore (previous year: Rs.3.48 crore) is paid/payable as
custom duty, Rs. 10.25 crore (previous year: Rs. 7.63 crore) has been
recognised as income and the balance of Rs. 3.84 crore (previous year:
Rs.2.05 crore) has been shown underCurrent Liabilities.
10. Depreciation on assets created on leasehold land is provided in
line with the accounting policy of the company irrespective of the land
lease period, as the leases are likely to be renewed/extended.
11. Current liabilities-others includes Rs. 0.25 crore (previous year: Rs.
1.57 crore) towards unutilised grant received for acquisition of
specific fixed assets in CONCOR/business arrangement. The amount of
grants received during the year is Rs. 0.38 crore (previous year: Rs. 2.56
crore).
12. Book Overdraft represents cheques issued by the company pending
clearance against the flexi/other deposits with the banks.
13. Balances of Sundry Debtors, Loans & Advances, Deposits, Sundry
Creditors (including Indian Railways), etc. are subject to
confirmation/reconciliation.
14. During the year 1998-99, the company gave loan of Rs. 2.00 crore to
Indian Railway Welfare Organization (IRWO) at simple interest of 8.5%
p.a. in terms of Presidential Directives received from the Ministry of
Railways. The amount is being repaid as per schedule and the amount of
loan outstanding as at 31.03.2010 is Rs.0.20 crore (previousyear:
Rs.0.40crore).
15. The auditorsremuneration includes an amount of Rs. Nil (previous
year: Rs.0.01 crore), relating to earlieryears.
16. (a) Miscellaneous expenses include loss on sale of fixed assets-Rs.
0.24 Lakh (Previous Year: Rs. 6.27 lakh), provision for damage of fixed
assetsRs. Nil (Previous Year: 0.44 Lakh) and exchange fluctuation (loss)
Rs.0.05 lakh (previousyear:Rs.0.10lakh).
(b) Wagons and containers damaged in an accident have not been written
off pending settlement of claim. The estimated claim
realized/realizable and provision for loss of wagons totalling to Rs.
1.36 crore is continued to be adjusted in the accumulated depreciation
since FY 2008-09.
17. (a) As per the tripartite business arrangement of the company with
Hindustan Aeronautics Ltd. and Mysore Sales International Ltd. for
operating air cargo complex at Bangalore (JWG-ACC), a loss of Rs. 0.51
crore (Previous year: Rs. 1.91 crore profit shown in Other Income)
being companys share in the entity as per unaudited accounts for the
year ended 31st March, 2010 has been accounted for under Miscellaneous
Expenses.
(b) HALCON is a business arrangement of the company with Hindustan
Aeronautics Ltd. for operating an Air Cargo Complex and ICD at Nasik. A
profit ofRs. 10.89 lakh (Previous year: Rs.21.61 Lakh loss shown under
Miscellaneous Expenses) being companys share in the entity as per
unaudited accounts for the year ended 31st March, 2010 has been
accounted for underMiscellaneous Income.
18. Works carried out by Railways/its units for the company are
sometimes accounted for on the basis of correspondence/estimates/advice,
etc.
19. Land license fee paid/payable to the Indian Railways (IR) is
calculated on the basis of number of twenty feet equivalent units
(TEUs) handled in terms of instructions issued by Ministry of Railways
from time to time. The company lodged claim of Rs.2.82 crore towards land
license fee paid to Indian Railways forinternal movement of empty
containers during the years 1999-2000 to 2003-04. However, as a matter
of prudence, the same will be accounted foron receipt/acceptance.
20. Stores & spare parts include items costing Rs. 2.16 crore (previous
year: Rs. 2.29 crore), which have not been consumed during last three
years. These items by their very nature are essentially to be kept and
are fit for their intended use.
21 Remittance in foreign currency for dividend:
The company has not remitted any amount in foreign currency on account
of dividend during the year.
22. (a) Information with regard to amount due to SSI units has been
determined on the basis of information available with the Company and
relied upon by auditors. To the extent of information available, there
are no Small Scale Industrial Undertakings to whom company owes an
amount, which is outstanding for more than 30 days (Previous year:
NIL).
(b) The Company has not received any intimation from the suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 as at the Balance Sheet date and therefore no
such disclosures underthe said Act have been made.
23. a) As per Presidential Directives received during FY 2008-09,
Employees Salaries and Perquisites have been revised w.e.f 1st
January, 2007. Disbursement pursuant to such directives was/is being
made to the eligible employees.
b) Pursuant to DPE circular in respect of 2nd pay committee
recommendations, the company is in the process of framing a pension
scheme for its employees. Pending finalization of the scheme, an amount
of Rs. 0.50 crore (Previous year: Rs. 0.50 crore) has been provided on
adhoc basis towards companys contribution to the Scheme.
c) The impact of pay revision in respect of custom cost recovery &
security expenses, etc. payable to the Govt. is being accounted for as
and when the claims are finalized.
24. Provisions relating to disclosure of information as required by
other sub-clauses of Clause-3 of Part-II of Schedule VI to the
Companies Act, 1956, are not applicable, as the company has no
manufacturing activity.
25. During September 2007, company received duty credit entitlement
scrips amounting to Rs. 125 crore under the Served From India Scheme
(SFIS) of the Government of India. As per the scheme, the scrips can be
utilized within two years for duty credit for import of capital goods &
payment of excise duty on domestic purchases. During the year, an
amount of Rs. 6.00 crore (previous year: Rs. 30.16 crore) has been utilized
for custom duty credit on import of capital goods and Rs. 8.98 crore
(previous year: Rs. 33.29 crore) for excise duty credit on domestic
purchase. Balance scrips of Rs. 33.12 crore expired on 24.09.2009, thus
out of the total credit of Rs.125 crores there is a Nil balance of
unutilized scrips as on 31.03.2010 (previousyear: Rs.48.10 crore).
During the current financial year, company received additional SFIS
scrips amounting to Rs. 82.46 crores (Rs. 29.75 crore in May 2009 andRs.
52.71 crores in February 2010). Out of this, an amount ofRs. 8.28 crore
has been utilized for custom duty credit on import of capital goods and
Rs. 7.87 crore for excise duty credit on domestic purchase during the
year, leaving a balance of Rs. 66.31 crore as on 31.03.2010.
26. The Govt. has imposed cess on building and otherconstruction works
underthe provisions of the Delhi Building and Other Construction
Workers (Regulation of Employment and Conditions of Service) Rules,
2002, Building and other Construction Workers Welfare Cess Act, 1996
and Building and Other Construction Workers Cess Rules, 1998. Similar
cess has also been imposed by some other States. During FY 2008-09, a
notice was received from the Labour Department at Delhi for payment of
Rs. 46.05 lakhs towards this cess from 1996 onward. Since the Gazette
notification for levy of cess has been issued in August 2005, the
liability from that date amounting to Rs.4.13 Lakh has been deposited in
FY 2008-09, which is recoverable from the contractors.
27. The Company has, with effect from 1st April, 2007, adopted
Accounting Standard 15, Employee Benefits (revised 2005), issued by the
Institute of Chartered Accountants of India (ICAI). The disclosures as
required as perthe above accounting standard are as under:
(a) Defined Contribution plans:
i) Employers contribution to Provident Fund
ii) Employers contribution to Employees Pension scheme, 1995
Company pays fixed contribution to Provident Fund at predetermined
rates to a separate trust, which invests the fund in permitted
securities. The contribution to the fund for the period is recognized
as expense and is charged to the profit & loss account. The obligation
of the company is limited to such fixed contribution. However, the
trust is required to pay a minimum rate of interest on contributions to
the members as specified by Government. During the year, the company
has recognized the following amounts in the profit and Loss Account.
(i) Employerscontribution to Provident Fund-
Rs.4.42crore(previousyear:Rs.2.31 crore)
(ii) Employerscontribution to Employees Pension scheme, 1995-
Rs.0.78crore (Previousyear: Rs.0.74crore)
(b) Defined benefit plans: Gratuity:
The Company has a defined benefit gratuity plan, which is regulated as
per the provisions of Payment of Gratuity Act, 1972. The scheme is
funded by the company and is managed by a separate trust. The liability
for the same is recognized on the basisof actuarial valuation.
Leave Travel Concession:
The company provides LTC facility to its employees, which is regulated
in accordance with the policy framed in this regard. The liability for
the same is recognized on the basis of actuarial valuation.
Leave encashment:
The company has a defined benefit leave encashment plan for its
employees. Under this plan, they are entitled to encashment of earned
leaves and medical leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave
encashment have been provided on the basis of actuarial valuation.
28. Segment Information as per Accounting Standard-17:
(a) PrimarySegments:
The company is organized on All-India basis into two major operating
divisions- EXIM and Domestic. The divisions are the basis on which the
company reports its primary segment information. Both EXIM and Domestic
divisions of the company are engaged in handling, transportation &
warehousing activities.
Segment revenue and expenses directly attributable to EXIM and Domestic
segments are allocated to the two segments. Joint revenue and expenses
have been allocated on a reasonable basis. Segment assets include all
operating assets used by a segment and consist principally of
inventories, sundry debtors, cash & bank balances, loans & advances,
other current assets and fixed assets net of provisions. Similarly,
segment liabilities include all operating liabilities and consists
principally of sundry creditors, advance from customers, other
liabilities and provisions. Segment assets and liabilities do not,
however, include provisions for taxes. Joint assets & liabilities have
been allocated to segments on a reasonable basis.
29. Related Party Disclosures as per Accounting Standard-18:
a) Key Management Personnel: Directors of the Company:
b) Joint Ventures:
i. Star Track Terminals Pvt. Ltd.
ii. Trident Terminals Pvt. Ltd.
iii. Albatross CFS Pvt. Ltd.
iv. Gateway Terminals India Pvt. Ltd.
v. JWG-Air Cargo Complex (a business arrangement)
vi. Himalayan Terminals Pvt. Ltd. (Foreign Joint Venture)
vii. CMA-CGM Logistics Park (Dadri) Pvt. Ltd.
viii. HALCON (a business arrangement)
ix. India Gateway Terminal Pvt. Ltd.
x. Integrated Infra Log Pvt. Ltd.
xi. Infinite Logistics Solutions Pvt. Ltd.
xii. Hind CONCOR Terminals (Dadri) Pvt. Ltd.
xiii. Container Gateway Limited
xiv. Allcargo Logistics Park Pvt. Ltd.
xv. CONYK Cartrac Pvt. Ltd.
30. In the opinion of the management, during the year there are no
indications that impairment of any asset has taken place. Accordingly,
no provision for impairment of assets is required as per Accounting
Standard 28.
21. Pending issuance of notification under Section 441A of the
Companies Act, 1956, no provision has been made towards cess on the
turnover of the company.
32. The disclosure, in terms of clause 32 of the listing agreement is
as under:
a) Loan to wholly owned subsidiary, M/s Fresh & Healthy Enterprises
Ltd. (FHEL): Rs. 33.64 crore (previous year Rs. 27.64 crore). Maximum
amount outstanding during the year isRs.38.64 crore (previous year:
Rs.45.15 crore).
33. a) Unless otherwise stated, the figures are in rupees crores.
b) Previous years figures have been recast/regrouped/rearranged
wherever considered necessary to conform to this years classification.
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