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Notes to Accounts of Container Corporation of India Ltd.

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 software’s 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 Act”)

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 – 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 Liabilities”.

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 – Rs. 4.36 crore (previous year: Rs.3.93 crore)

2. Employers' contribution to Employees Pension scheme, 1995 – 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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