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Contents Page No.

Mission and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . 3

Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Director’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-16

Project of MUTP (Rail-Component) . . . . . . . . . . . . . . . . 17

Financial Highlights for last ten years . . . . . . . . . . . . . 18

Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-20

Annexure to Auditor’s Report. . . . . . . . . . . . . . . . . . . . 21

Comments of the C & AG of India . . . . . . . . . . . . . . . . 23

Balance Sheet & Income & Expenditure A/c. . . . . . 24-40

(With Notes)

1

Annual Report2010-11

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2

indianrailways.gov.in

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D.

Notice

NOTICE OF THE TWELFTH ANNUAL GENERAL MEETING

Notice is hereby given that the twelfth Annual General Meeting of Mumbai Railway Vikas Corporation

Limited will be held on 26th September, 2011 (Monday) at 13.00 hrs. at the Registered Office of the

Corporation at 2nd Floor, Churchgate Station Bldg., Mumbai - 400 020 to transact the following business:

Ordinary Business:-

1) To receive, consider and adopt the Audited Income and Expenditure Account for the year ended

31st March, 2011 and the Balance Sheet as at that date together with the Directors' and Auditors'

Report thereon and the comments of C & AG on the Accounts of the Corporation.

2) To fix the remuneration of Statutory Auditors to be appointed by the Comptroller and Auditor

General of India pursuant to Sections 224 (8) (aa)/619 of the Companies Act, 1956 for the financial

year 2011-12 by passing with or without modifications the following resolution as an Ordinary

Resolution.

"RESOLVED THAT pursuant to Section 224 (8) (aa) of the Companies Act 1956 the Managing

Director and/or Director (Finance) of the Corporation be and is hereby authorized to fix the

remuneration of Statutory Auditors for the financial year 2011-12 in consultation with them".By order of the Board of Directors

(Vijay g. Angane)Company Secretary

Place : Mumbai Date : 26th August 2011

NOTE1.` A member entitled to attend and vote at the meeting,. is entitled to appoint ,a Proxy to attend and

vote instead of himself and a Proxy need not be a member of the corporation.2. Instrument appointing a Proxy or other authority, if any, shall in order to be effective be deposited

at the Registered Office of the Corporation not less than 48 hours before the meeting.3. Kindly note that if at the Twelfth Annual General Meeting, quorum (i.e. minimum 5 members

personally present other than proxy) is not present within half an hour from the time appointed

for holding the meeting, the meeting will be adjourned for half an hour and the members present

at the adjourned meeting (minimum 2 members) may transact the business for which meeting is

called.

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5

V. N. Tripathi Chairman

( From 7.10.2010 to 30.06.2011)

B. N. Rajasekhar Part Time Official

Director (IR)

stMRVC has reported surplus of ̀ 10.37 crore for the financial year ended 31 March 2011 as against ` 25.80 crore for the previous financial year ended 31.03.2010. The total

stincome of the company for the year ended 31 March 2011 is ̀ 29.12 crore as against ̀ 41.84 crore last year. The interest income from the bank deposit is ` 19.10 crore as against the corresponding figure of ` 27.20 crore last year and Direction and General Charges ̀ 9.47 crore for the year 2010-11 as against ̀ 14.28 crore for the year 2009-10.

stThe total net worth of the Company as on 31 March 2011 stood at ̀ 117.64 crore as against ` 107.27 crore in the last year. This performance is achieved inspite of lower interest rate regime prevailing during the entire financial year. The total expenditure is

st` 18.39 crore for the year ended 31 March, 2011 vis-à-vis ̀ 16.00 crore last year.

No provision of Income Tax and Fringe Benefit Tax has been made since the Company has obtained exemption under Section 12A of the Income Tax Act, 1961. Company ploughs back its surplus for the furtherance of the objectives of the Company within a period of 5 years of accrual of such profit in compliance of Income Tax Act, 1961.

stMUTP (Rail Component) Project expenditure during the financial year ended 31 March 2011 was ̀ 552.05 crore as against ̀ 1013.83 crore in the previous financial year ended

st31 March 2010.

The financing model of MRVC is Public-Public-Participation. The cost of the project is being shared equally by Ministry of Railways and Government of Maharashtra. Approximately 50% of the project cost is raised through World Bank loan. The repayment of the loan to World Bank is done by Ministry of Railways and Government of Maharashtra in equal ratio by levying surcharge on the existing fares.

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D.

Director’s Report

Income 29.12 41.84

Expenditure 18.39 16.00

Excess of Income over Expenditure before prior

period Items & Taxes 10.73 25.84

Less/(Add) – Prior period adjustment (Net) 0.36 0.04

Excess of Income over Expenditure for the year 10.37 25.80

Brought forward Surplus from previous year 107.27 81.48

Balance carried to Balance Sheet 117.64 107.27

Earnings per Share

(in Rupees) – Face Value of Share `1,000 429.06 1033.61

Ladies/Gentlemen,

The Directors of Mumbai Railway Vikas Corporation Limited (MRVC) have great pleasure in presenting the Twelfth Annual Report on the business and operations of the Company and

stStatements of Accounts for the year ended 31 March 2011.

(1) Financial Results:

stThe salient features of the financial results of the Corporation for the year ended 31 March, 2011 are as under:

( ` in crores)

Particulars Year Ended

31.03.2011

Year Ended

31.03.2010

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The list of projects being executed under MUTP along with the financial progress of the projects is given at Annexure 'A'.

3) Works handled by MRVC

Some of the major works handled by MRVC during the year under review are as follows :

(a) EMU Procurement / Manufacture :

The procurement and manufacture of EMU rakes has been the major and important component of MUTP I. It is a matter of pride that all 101/9-car rakes (909 coaches) under MUTP–I has been received. Total 128 EMU rakes (114/12-Car & 14/9-car) i.e. 1521 coaches including GP-194 contract have been received in Mumbai city. After receipt of the new rakes total of 418 additional services have been introduced on Central & Western Railway and 973 services have been augmented from nine-car rakes to twelve-car. More than 31% additional carrying capacity has been generated and also over-crowding level has come down by more than 20% for the first time in Mumbai Suburban Rail Network.

(b) DC to AC Conversion :

MRVC has executed power supply arrangement for 25 kV AC as a part of DC-AC conversion at BVI-CCG section on WR. MRVC has erected and commissioned Traction Sub-Station at Jogeshwari, Bandra & Mahalaxmi and Power supply has been taken at 110 kV from M/s. TATA for which the cabling works have been completed.

(c) Procurement of EMU Bogies :

(d) Performance of MoU 2010-11 :

(e) Virar Car Shed :

MRVC has almost completed first phase 'state-of-the-art', EMU car shed at Virar for maintenance of new design EMU rake with a installed capacity of 30 EMU rakes. The capacity will be enhanced to the 60 EMU rakes in the second phase. The work of second phase has also commenced and likely to be completed by 2014.

th(f) 5 Line between Mahim-Santacruz :thThe offline works for 5 line between Mahim have been completed. The laying of

thtrack has been planned under Phase II alongwith laying of 6 line.

(g) Virar-Dahanu Road Track Center Work :

Virar-Dahanu Road track centering work required for existing EMU services upto Dahanu Road being executed by MRVC has been completed. Western Railway would plan running of EMU services upto Dahanu Road based on the availability of the EMU rakes.

The contract for procurement of 108 new design EMU bogies has been signed with M/s. Siemens Transportation System GmBH & Co KG, Graz, Austria on 18.12.2008. The prototype inspection and testing of the first rake set was witnessed by RDSO in January 2010 and one nine car rake equipped with these prototype bogies have been received in Mumbai. Oscillation and Braking Distance Trials by RDSO & Siemens team are in progress in Mumbai Area. These are expected to be completed by August 2011 end.

Based on the evaluation of performance MoU for the year 2009-10, the rating of MRVC has been confirmed as 'Excellent' by Department of Public Enterprises (DPE). The provisional evaluation of performance of MoU for the year 2010-11 is also expected to be 'Excellent'. This would be the third consecutive year when MRVC is getting 'Excellent' MoU rating. Further MRVC was presented MoU Excellence Certificate 2008-09 for Excellent Achievements in MoU Targets by Dr.Manmohan

thSingh, Hon'ble Prime Minister of India on 15 December, 2010 at New Delhi.

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D. (h) Study for running 15 car trains :

(i) MUTP Phase II works :

World Bank funded projects :

MUTP Phase II has been bifurcated into two parts, i.e. MUTP 2A & MUTP 2B. MUTP 2A involves financing from the World Bank.

Loan of USD 430 million from World Bank :

World Bank has sanctioned the loan of USD 430 million (INR 1910 crores). The loan agreement has been signed between Government of India & World Bank and also Project Agreements have been signed between GoM and World Bank and also between MRVC and World Bank.

The progress of major infrastructure works under MUTP Phase II is as follows :

(1) Procurement of EMU rakes :

Under MUTP Phase II, 72/12 car rakes have been planned to be procured. The bids have been successfully opened on 07.12.2010 and are under finalisation.

(2) Supply and laying 110 kV cables :

(3) Other World Bank funded Contracts:

(4) Andheri-Goregaon Extension of harbour line :

Earthwork, retaining wall and bridge works are in progress. The bids for Andheri, Goregaon and Jogeshwari station building have been awarded and the works are in progress. Yards plan are in process of approval by WR.

(5) Stabling lines :

The contracts for all 46 nos. stabling sidings on WR including OHE, Signaling have been awarded and work is in progress.

(j) Award for MRVC :

Following awards have been received by MRVC and MD/MRVC during the year 2010-11 :

MRVC had given a consultancy to M/S. RITES Ltd for running of 15 car trains on Mumbai Suburban sections of Western Railway. The final report has been submitted by M/S RITES Ltd. Based on the report, Western Railway has introduced running of 15 car EMU services between Churchgate & Virar. Another consultancy for running 15 car trains on Mumbai Suburban section of Central Railway, has been given to M/s.RITES Ltd. recently (in June 2011). Final Report is expected to be submitted within a year.

The contract for 110 kV cable supply and laying from TATA receiving centres to Traction Sub-stations (TSS) at SION and Chinchpokli has been awarded. The work has also been commenced. For another work of cable supply and laying from TATA receiving stations to TSS at Mankhurd and Thane, bids

rdhave been opened on 3 August 2011.

The bids for supply, installation and commissioning of Digital Axle Counter (DAC) and design, supply and installation commissioning to 110 kV/25 kV traction, sub-station alongwith switching posts were opened on 12.10.2010 & 12.01.2011 respectively and contracts have been awarded. The work against both these contracts will commence shortly.

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Name of the Award Organization Year

“Dainik Bhasker India Pride Award 2010” Dainik 2010

- Corporate Social Responsibility Bhaskar

Award – in Gold Group

“Dainik Bhasker India Pride Dainik 2010

Award 2010” - Infrastructure Bhaskar

Development Award – in Silver Group

(4) Future Plans of MRVC:

MRVC has also taken the initiative to launch future MUTP Phase III. The major works identified are :-

? New Suburban line on Virar-Vasai-Diva-Panvel section.

rd th? 3 and 4 Line Virar-Dahanu Road.

? Running of 12 –coach trains on Harbour Line.

th th? 5 & 6 Lines Borivali-Virar.

? Extension of Harbour Line from Goregaon to Borivali.

? Introduction of 15-coach trains on Central and Western Railways mainline.

? Improved signalling system for headway reduction.

? Provision of fast corridor on Harbour Line.

(5) Change in the Board of Directors:

i) Shri A. K. Goyal, Member Staff, Railway Board and Part-time Chairman of the Company relinquished the office of Part-time Chairman, MRVC, w.e.f. 09.08.2010 on account of voluntary retirement from Indian Railway Service.

ii) Shri A. K. Tiwari, Additional Member (Planning), Railway Board & Part-time Official Director of the Company relinquished the office of Part-time Official Director, MRVC w.e.f. 31.08.2010 on account of his retirement from Indian Railway Service.

iii) Shri V. N. Tripathi, Member (Staff), Railway Board was appointed as Part-time Chairman of the Company w.e.f. 07.10.2010 and he relinquished the said office w.e.f. 30.06.2011 on account of his retirement from Indian Railway Service.

iv) Shri B. N. Rajasekhar, Additional Member (Planning) Railway Board was appointed as Part-time Official Director of the Company w.e.f.12.11.2010.

v) Dr. P. C. Sehgal, Managing Director of the Company relinquished the office w.e.f. 30.04.2011 on account of his retirement from Indian Railway Service.

The future plans of MRVC include increasing the number of 15 car train on the suburban system of Western Railway and introduction of 15 car trains on suburban system of Central Railway besides introduction of modern signalling system to create additional capacity.

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D. vi) Shri P. K. Sharma, Director (Projects) of the Company was entrusted the additional

charge of Managing Director w.e.f. 03.05.2011 .

(6) Directors' Responsibility Statement:

In terms of Section 217 (2AA) of the Companies Act, 1956, it is stated:

(I) that in preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departure.

(ii) that the Company has selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Income and Expenditure account of the company of that period.

(iii) that the Company has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) that these Annual Accounts have been prepared on a going concern basis.

7. Corporate Governance:

The Board of Directors of the Company has adopted Corporate Governance Guidelines prescribed by DPE (Government of India) effective from 01.04.2011. They are applicable for financial year 2011-12 and onwards. Considering the unique structure of the Company, certain guidelines are not practicable to implement.

rd1. Composition of BoD with 1/3 of Independent Directors.

2. Composition of Audit Committee consisting of all Independent Directors.

3. Preparation and submission of quarterly financial statement to Audit Committee/BoD.

Hence, the formal report on Corporate Governance will be annexed to the Directors' Report next year onwards.

However, certain details which are part of Corporate Governance are reported in this report.

(8) Audit Committee:

The Audit Committee of the Board, inter-alia, provides reassurance to the Board on the existence of an effective internal control environment. The terms of reference of the Audit Committee as per the guidelines set out in section 292 A of the Companies Act, 1956 and it inter-alia includes the following:

? To review compliance with internal control systems.

? To hold periodic discussions with the Statutory Auditors of the Company concerning the accounts of the Company, internal control systems, scope of audit and observations of the Audit.

? To review the half-yearly and annual financial results of the Company before submission to the Board.

? To make recommendations to the Board on any matter relating to the financial management of the Company.

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? To investigate into any matter relating to financial management including the audit report.

The Audit Committee comprises of Shri A.K. Tiwari, AM (Planning), Railway Board & Part-time Official Director/ MRVC as the Chairman of the Audit Committee till 31.08.2010 and Shri B.N.Rajasekhar, Additional Member (Planning), Railway Board & Part –time Official Director MRVC, since 31.12.2010, Shri T.C. Benjamin, Principal Secretary-I, UDD, GoM, Part-time Official Director/MRVC as the Member of the Audit Committee and Shri Naresh Chandra, Director (Technical)/MRVC as Member Audit Committee. Shri Vijay Angane, Company Secretary/MRVC is the Secretary of the Audit Committee. The composition of the Audit Committee meets the requirements of Section 292 A of the Companies Act, 1956.

Meetings and attendance at the Audit Committee –

During the financial year ended 31.03.2011, two meetings of the Audit Committee were held. The attendance of the Committee Members at the Meetings was as follows:

Name of Member Status

No. of

Meetings

Held

No.of

meetings

required to

be attended

No. of

Meetings

Attended

Shri A.K.Tiwari Chairman (upto 31. 08. 2010) 2 1 1

Shri T.C.Benjamin Member 2 2 Nil

Shri Naresh Chandra Member 2 2 2

Shri B.N.Rajasekhar Chairman (since 31.12.2010) 2 1 1

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D. (9) Board of Directors Meetings:

MRVC held 4 meetings of Board of Directors during the financial year 2010-11. Details of attendance of the Members of Board of Directors are as follows:-

Year Name/Category of Director Total number

of meetings of

BOD held

in a year

Number of

meetings

attended by

the Directors

Number of meetings

required to be attended

Whether

AGM attended

by the Director

2010-11 A. Functional or Executive Directors

1. Dr. P.C. Sehgal 4 4 4 Yes- MD

2. Shri P. K.Sharma 4 4 4 Yes– DP

3. Shri Naresh Chandra 4 3 4 Yes– DT

4. Shri N. M. Misra 4 4 4 Yes– DF

5. Shri. S. V.R. Srinivas D 4 3 4 Yes- (R&R)

6. Shri PRK Murthy D 4 2 4 No- (I&CD)

B. Government Directors1. Shri A.K. Goyal 4 0 4 NA

- Part-time-Chairman (upto 09.08.2010)

2. Shri V.N.Tripathi 4 1 2 NA Part-time Chairman(from 07.10.2010 to 30.06.2011)

3. Shri A.K. Tiwari 4 2 4 NA- Part Time Official Director ( Upto 31.08.2010)

4. Shri B.N.Rajasekhar 4 2 2 NAPart-time official Director (MoR) (since 12.11.2010)

5. Shri. T.C.Benjamin 4 0 4 No- Part Time Official Director (GoM)

C. Non-Executive NA NA NA NADirectors

1. 2 posts vacant

(10) Auditors:(i) M/s. Joshi Nair & Associates, Chartered Accountants, Mumbai were re-appointed by the

Comptroller & Auditor General of India, New Delhi as the Statutory Auditors for MRVC Ltd. for the financial year 2010 –11.

(ii) The Comptroller and Auditor General of India has entrusted the Govt. Audit of Mumbai Railway Vikas Corporation Ltd. to the Principal Director of Commercial Audit and Ex-officio Member, Audit Board – 1, Mumbai.

(iii) M/s. Devdhar Joglekar & Srinivasan, Chartered Accountants, Mumbai were Internal Auditors of the Company for the financial year 2010-11.

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(11) Auditors’ Report:

There is no qualification in the Reports of the Statutory Auditors issued by M/s. Joshi Nair & Associates, Chartered Accountants, Mumbai on the accounts of the company for the financial year

stended 31 March 2011.

C&AG (through Principal Director of Commercial Audit and Ex-officio Member, Audit Board – 1, Mumbai) has conveyed their NIL comments on the accounts of the company. “NIL” comment certificate issued by C&AG forms part of the accounts of the company.

(12) Particulars of employees u/s 217(2A) of the Companies Act, 1956:

During the year under review, the particulars of employees to be disclosed under section 217(2)(A) of the Companies Act, 1956 and the Companies (particulars of employees) Rules, 1975 and amendments thereof from time to time may be treated as “Nil”.

(13) Particulars relating to conservation of energy and technology absorption and foreign exchange earnings and outgo.

The Company is presently engaged in providing services relating to executing the rail infrastructure projects in Mumbai Suburban section under MUTP. It does not directly contribute towards conservation of energy and as such the information under the applicable provision u/s 217(1)(e) of the Companies Act, 1956 is not applicable.

The Company has not earned any foreign exchange during the year under report. The Company incurred an expenditure of ` 79.03 crore (previous year 222.67 crore) on account of payment towards capital goods for projects (CIF Basis), ` 0.58 crore on consultancy (previous year ` 1.08 crore) on travelling ̀ 0.05 crore (previous year ̀ 0.07 crore) and on others NIL crore (previous year ` 0.0036 crore) in foreign currency during the year.

(14) Corporate Social Responsibility (CSR):

Company has created CSR Budget equal to 3% of its previous year profit for the year 2010-11 to begin with. CSR Committee consisting of 3 members of the Board of Directors has been constituted for implementing and monitoring CSR activities as per guidelines of DPE (Government of India).

Besides, MRVC has been actively contributing in the area of Corporate Social Responsibility in and around the periphery of Mumbai Suburban area. During last 5 years, the Company’s activities have gained momentum and the following contributions by the Company has been made.

(i) Social Upgradation:

With removal of encroachments, 3.2 lakhs sq. meter of encroached railway land both on Central and Western Railways has been vacated. Resettlement of 15,000 project affected households with proper houses was completed by MRVC.

(ii) Energy Conservation and pollution control:

In the new design of EMU rakes, 25000V AC traction system is used. With the electronic equipments, 25000V is converted to Variable Voltage Variable Frequency AC supply, which is then fed to the 3 – Phase induction motors fitted in the motor coaches. During braking, traction motors work as generators and 30% of electric energy is pumped back to traction system due to use of re-generative braking. It is estimated that when all the new design trains are put into service, there will be energy saving of 20 Crore units, which will enable less production of 2 Lakh tonne of CO2 emission in the power stations. The World Bank has already identified this project under “Clean Development Mechanism” for generation of carbon credits under ‘KYOTO PROTOCOL’. MRVC has been awarded gold

`

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D. medal for “Excellence in Environment” for service category by Greentech Foundation,

New Delhi.

(iii) Noise Reduction:

With the use of step-less speed control and re-generative braking system, jerks are avoided and noise levels have been brought down. By provision of resilient spring mounting for the compressor and use of AC Carriage forms, noise level in the coaches has been reduced significantly thus improving overall environmental conditions.

(iv) Afforestation:

For laying of additional tracks between Borivali – Virar and Kurla – Thane, 3500 mangroves were cut. MRVC has taken up the responsibility to upgrade the environment and planted 13,000 mangroves. The survivability of these trees is checked every six months. The survival rate of such mangroves is 80%. In addition, approximately 5000 mangroves have been planted in advance for MUTP-II works.

(v) Rain Water Harvesting:

MRVC is doing rain water harvesting in the resettlement colonies developed by it for project affected people.

(vi) Passenger Amenities Upgradation:

In order to bring tangible improvements in the EMU trains, after getting feedback from the commuters the following additional features have been added to improve the passenger amenities:

Improved Ventilation:

ASHRAE standard has been adopted by restricting the CO2 level inside the coaches up to 700 ppm above ambient. In each coach, 15000 cu. m. of fresh air is being pumped per hour. With this, the CO2 level has come down from 2500 ppm to 1400 ppm. In addition, larger windows are also provided to ensure better ventilation.

Improved illumination level inside the coaches:

The lighting inside the coaches has been improved to 300 lux from present 120 lux.

Improved Seats:

In place of wooden seats, polycarbonate seats have been provided inside the coaches and seats with PU cushion have been provided in the first class.

Passenger Information System:

GPS based passenger information system has been provided in all the coaches with facilities like Automatic announcement of approaching stations in three languages, i.e. Marathi, Hindi and English, Platform indicator, Emergency announcement by control and LED based head code.

Pneumatic Suspension:

Pneumatic suspension has been used to improve the riding index.

Interiors:

To give aesthetic look and improve strength, stainless steel partition and grab handles have been used inside the coaches and FRP interior panels have been used.

Improved Colour Scheme:

Switched over to new colour scheme with purple and white colour, with polyurethane paint. The appearance of motorman’s cabin has also been improved for better visibility.

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(15) Human Resources Management Review:

a) Manpower Availability

In the year 2010-11, there has been lot of inflow and outflow of manpower as 17 deputationists were repatriated, having completed their deputation tenure. Despite this, manpower accusation was done from deputationists and from other sources, thereby keeping availability of manpower at the stipulated limit of 200 as per MOU targets.

b) Learning and Development

Learning and development has remained a prime focus area of the organization. A Management Development Programme (MDP) on World Bank Procedures was got conducted through National Institute of Finance Management (NIFM), Faridabad, at MRVC premises for a week which was well received by all participants of MRVC and was well covered by the media. In all, training of 106 officials were organized including 6 foreign visits.

c) Employee Engagement

Many progressive policies with respect to staff welfare were adopted as a measure of sustained employee engagement. Annual Day Celebrations, family get-togethers, Diwali Celebrations by all MRVC officials, recognition through various awards as well as on the spot award and open door policy of the higher management kept employee spirit at all time high.

(16) ISO Certification:

MRVC has obtained ISO 9001, ISO 14001 and OHSAS 18001 certifications evidencing its commitment to the quality consciousness in its operations.

(17) Employment of Women, Use of Official Language etc.

There is adequate representation of women employees in the Company. Further Company is following the guidelines of the Official Language Act. The Annual Report is published bi-lingually in English and Hindi. The Company would progressively increase the use in Hindi in accordance with the official language policy of the Government. The officers and staff possess working knowledge in Hindi for their day to day work. The Company had observed

th th‘Rajbhasha Saptah’ during the period from 13 September to 17 September, 2010. In-house Hindi magazine “Vikas Path” is issued every quarter by the Corporation.

(18) Vigilance

MRVC has full-fledged vigilance Department. MRVC observed Vigilance Awareness period from 25.10.2010 to 01.11.2010. On this occasion Essay competition on the topic “Corruption can be removed in our country only by three people namely Father, Mother and Elementary School Teacher” was launched with the prizes to winners. Debate was also organised on the topic “Corruption is a bottleneck in our country in rapid economic development of India”. An anti-corruption film “Corruption free India – the way ahead” was made in- house for sensitising the MRVC Officers and Staff.

In order to bring more transparency, to avoid the corrupt practices and to implement the accountability the policy of Governance and Accountability Action Plan (GAAP) has been implemented in Organisation on the recommendation of the World Bank. The following two policies have been introduced and hosted on MRVC website with the approval of M.D.

i) Incentive policy for staff/public those report bribery or corrupt cases in MRVC.

ii) Banning of business with the firms/contractors/suppliers who are engaged in fraudulent/

16

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D. misrepresentation activities/corrupt practices.

(19) Capital Structure:

stAs on 31 March 2011 paid up capital of the Corporation stood at ` 25 crores. The Government of India holds 51% of the paid up share capitals amounting to ` 12.75 crores and Government of Maharashtra holds 49% of the paid up share capitals amounting to ` 12.25 crores of the Corporation. During the year, there was no change in the paid up share capitals.

(20) Right to Information Act 2005:

The Right to Information Act 2005 seeks to provide for setting out the practical regime of Right to Information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority. The company has in the capacity as Government Company and deference to the spirit behind the law appointed Public Information Officers to take care of compliance of Right to Information Act 2005.

(21) Remuneration to Directors:

MRVC being a Government Company under the Companies Act 1956, the whole time Directors of the Company are appointed by President of India through Ministry of Railways and Governor of Maharashtra State. The Functional Directors appointed by Government of India, Ministry of Railways draw remunerations under Industrial Dearness Allowance (IDA) & CDA pattern of pay scale pre-determined by the Government and as per the terms and conditions issued by Government of India from time to time.

The Directors appointed by Government of Maharashtra does not draw any remuneration from MRVC. The Part-time Official Directors (Government nominee) on the Board of the Company do not draw any remuneration from the company. The Part-time Non-Official Directors are paid sitting fee of ̀ 5,000/- per meeting attended.

(22) Means of Communication:

The audited annual financial results are displayed on MRVC web site www.mrvc.indianrailways.gov.in. Tenders/Expression of Interest (EoI), details of tenders/contractors awarded, corporate mission and other details are posted on the website of the company and are updated from time to time.

(23) Acknowledgement:

The Board of Directors gratefully acknowledge the co-operation and guidance received from the Ministry of Railways, Govt. of Maharashtra, MMRDA and the Central and Western Railways from time to time.

The Board of Directors also place on record their appreciation of the valuable services rendered by the officers and employees of the Corporation during the year under review.

For and on behalf of the Board of Directors

(N.M. Misra) ( P.K.Sharma)Director (Finance) Director (Projects)

& Officiating Managing Director Place : MumbaiDate : 23rd August 2011

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.Projects of MUTP ( Rail Component)

1 Phase - I ANNEX - A ` in Crores

Sr. Projects Original Cost Reconstructed CumulativeNo. (Base Year) 2001 cost Expenditure

(Upto 31.03.2011)

1 Provision of 5th line Western Railway 59.00 62.00 48.99

2 5th & 6th line between Kurla - Thane 166.00 222.80 256.89

3 Borivali - Virar Quadrupling 436.00 505.00 585.62

4 Optimisation of Western Railway 50.10 94.80 78.77

5 Optimisation of Central Railway 99.50 102.85 90.15

6 Optimisation of Harbour line 19.70 21.80 25.68

7 DC to AC Conversion. 380.40 558.60 562.93

8 Virar Car Shed 73.00 226.45 229.01

9 EMU Procurement/ manufacture/ retrofitment 1359.20 1751.00 1679.10

10 EMU Maintenance facilities. 64.30 63.20 72.65

11 Stabilising lines for EMUs. 48.50 54.20 62.94

12 Procurement of Track Machines 31.30 36.50 36.61

13 Technical Assistance. 40.40 36.80 42.91

14 Resettlement & Rehabilitation 290.00 410.00 429.21

15 Capital expenditure for setting up of MRVC 7.79 28.40 0.61

Total 3125.19 4174.40 4202.06

2 Phase - II ` in Crores

Sr. Original Cost Completion Cost Cumulative No. Projects (March 2008) (2013) Expenditure

(Upto 31.03.2011)

1 Kurla - CSTM 5th & 6th line 537.00 659.00 2.03

2 Thane - Diva additional pair of lines. 115.00 133.00 27.91

3 Borivali - Mumbai Central 6th line. 430.00 522.00 1.16

4 Extension of Harbour Line to Goregaon 88.00 103.00 31.14

5 DC to AC Conversion 237.00 293.00 120.88

6 EMU Procurement / Manufacture 2324.00 2930.00 0.00

7 EMU Maintenance facilities. 167.00 205.00 9.03

8 Stabilising Lines for EMUs. 111.00 141.00 46.32

9 Technical Assistance & Institutional Strenghtening 52.00 62.00 0.06

10 Resettlement & Rehabilitation. 109.00 124.00 0.00

11 Station Improvement & Trespassing Control 111.00 128.00 1.04

TOTAL 4281.00 5300.00 239.57

Total (Phase-I & II) 4441.63

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D.

TO THE MEMBERS OF MUMBAI RAILWAY VIKAS CORPORATION LIMITED

1. We have audited the attached Balance Sheet of MUMBAI RAILWAY VIKAS CORPORATION

LIMITED (the Company) as at 31st March 2011 and also the Income and Expenditure Account

for the year ended on that date annexed thereto. These financial statements are the responsibility

of the Company's management. Our responsibility is to express an opinion on these financial

statements based on our audit.

2. We conducted our audit in accordance with Auditing Standards generally accepted in India.

Those Standards require that we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial

statements. An audit also includes assessing the accounting principles used and significant

estimates made by management, as well as evaluating the overall financial statement

presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies

(Auditor's Report) (Amendment) Order, 2004 (together the 'Order') issued by the Central

Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the

'act') and on the basis of such checks of the books and records of the Company as we considered

appropriate and according to the information and explanations given to us, we enclose in the

Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. We report that:

(i) We have obtained all the information and explanations, which to the best of our

knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the

Company so far as appears from our examination of those books;

(iii) The Balance Sheet and Income and Expenditure Account dealt with by this report are in

agreement with the books of account;

(iv) In our opinion, the Balance Sheet and the Income and Expenditure Account dealt with by

this report comply with the Accounting Standards referred to in sub-section (3C) of

section 211 of the Companies Act, 1956;

(v) We have been informed that the provisions of Section 274(1)(g) of the Companies Act,

1956 are not applicable to a Government company in view of the notification issued in this

behalf: and

(vi) In our opinion and to the best of our information and according to the explanations given

to us, the said accounts read together with the Significant Accounting Policies in Schedule

'A' and

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Auditor’s Report

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D. a) Note 8 of Schedule “B” regarding reliance being placed on audited / unaudited

statements pertaining to expenditure incurred on various projects by Central

Railway, Western Railway and Mumbai Metropolitan Regional Development

Authority (MMRDA), and the resultant Direction and General Charges (D&G) and

other Notes on Accounts in Schedule “B” thereon give the information required by

the Companies Act, 1956, in the manner so required and give a true and fair view in

conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st

March, 2011; and

(b) in the case of the Income and Expenditure Account, of the excess of income

over expenditure of the Company for the year ended on that date.

For Joshi Nair & Associates. Chartered Accountants

Firm Regn. No. 119585W

H.G.Nair(Partner)

Membership. No. 039546Place : Mumbai Date : 21st JUNE, 2011.

Annexure To Auditors’ Report

(Referred to in paragraph 3 of our report of even date to the members of Mumbai Railway Vikas stCorporation Limited on the financial statements for the year ended 31 March, 2011)

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) According to the information and explanations given to us, all the assets have been physically verified, at intervals, by the management during the year, which in our opinion is reasonable, having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) In our opinion, a substantial part of the fixed assets has not been disposed off by the company during the year.

(ii) The company in the normal course of business does not hold any inventory. Accordingly clause 4(ii) of the Order is not applicable.

(iii) (a) The company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly sub-clauses (a), (b), (c), and (d) of clause 4(iii) of the Order are not applicable.

(b) The Company has not taken any unsecured loan from companies covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly sub-clauses (e), (f) and (g) of clause 4(iii) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of fixed assets, inventory for project and sale of services. The activities of the Company do not involve sale of goods. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any instance of major weaknesses in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanations given to us, there were no transactions that need to be entered into the register to be maintained under section 301 of the Companies Act, 1956. Accordingly sub-clause (b) of clause 4(v) of the order is not applicable.

(vi) The Company has not accepted any deposits from public within the meaning of the provisions of Sections 58A and 58AA or any other relevant provisions of the act, and the rules framed there under. Accordingly clause 4(vi) of the Order is not applicable.

(vii) In our opinion, the Company has an adequate internal audit system commensurate with the size and nature of its business.

(viii) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 in respect of services carried by the Company.

(ix) (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employee’s state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues as applicable, with the appropriate authorities. Based on our audit procedure and according to the information and

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D. explanations given to us, no undisputed dues payable in respect of provident fund,

investor education and protection fund, employee’s state insurance, income tax, sales tax, stwealth tax, service tax, customs duty, excise duty and cess were in arrears, as at 31 March,

2011 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess which have not been deposited on account of any dispute.

(x) The Company has no accumulated losses and has not incurred any cash losses during the current financial year and in the immediately preceding financial year.

(xi) The Company has neither taken any loans from a financial institution, bank nor issued any debentures. Accordingly clause 4(xi) of the Order is not applicable.

(xii) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly clause 4(xii) of the Order is not applicable.

(xiii) The Company is not a chit fund, nidhi or mutual fund or a society. Accordingly clause 4(xiii) of the Order is not applicable.

(xiv) According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debentures and other investments. Accordingly clause 4(xiv) of the Order is not applicable.

(xv) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions. Accordingly clause 4(xv) of the Order is not applicable.

(xvi) The Company has not taken any loans. Accordingly clause 4(xvi) of the Order is not applicable.

(xvii) The Company has not raised any funds. Accordingly clause 4(xvii) of the Order is not applicable.

(xviii) According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. Accordingly clause 4(xviii) of the Order is not applicable.

(xix) The company has not issued any debentures. Accordingly clause 4(xix) of the Order is not applicable.

(xx) The company has not raised any money by public issue during the period. Accordingly clause 4(xx) of the Order is not applicable.

(xxi) During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For Joshi Nair & Associates.Chartered Accountants

Firm Regn. No. 119585W

H.G. Nair(Partner)

Membership. No. 039546Place: Mumbai Date: 21st JUNE 2011.

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23

Comments of the C & AG of India

OMMENTS OF THE COMPTROLLER AND AUDITOR

GENERAL OF INDIA UNDER SECTION 619(4) OF THE

COMPANIES ACT, 1956 ON THE ACCOUNTS OF MUMBAI

RAILWAY VIKAS CORPORATION LIMITED FOR THE

YEAR ENDED 31 MARCH 2011.

The preparation of financial statements of Mumbai Railway Vikas

Corporation Limited for the year ended 3 I March 2011 in accordance with

the financial reporting framework prescribed under the Companies Act,

1956 is the respol1sibility of the management of the company. The

statutory auditor appointed by the Comptroller and Auditor General of

India under section 619(2) of the Companies Act. 1956 is responsible for

expressing opinion on these financial statements (under section 227 of the

Companies Act, 1956 based on independent audit in accordance with the

auditing and assurance standards prescribed by their professional body

the Institute of Chartered Accountants of India. This is stated to have been

done by them vide their Audit Report dated 21 June 2011.

I on the behalf of the Comptroller and Auditor General of India have

decided not to review the report of the Statutory Auditors' on the accounts

of Mumbai Railway Vikas Corporation Limited for the year ended 31

March 20 II and as such have no comments to make under Section 619 (4) of

the Companies Act 1956.

For and on the behalf of the Comptroller and Auditor General of India

(ALKA R. BHARDWAJ)Principal Director of Commercial Audit and Ex-Officio Member Audit Board-I, Mumbai

Place: MumbaiDate : 29.07.2011

C

Particulars Sch. No. `

As at 31.03.2011

`

As at 31.03.2010

`

SOURCES OF FUNDS

Shareholders’ Funds

Share Capital 1 25,00,00,000 25,00,00,000

Reserves and Surplus 2 1,16,86,42,989 1,07,27,31,660

Unsecured Funds For Projects

Total MUTP Funds Received 3 4628,68,74,210 41,23,96,97,135

Less : Total MUTP Funds Utilised 4441,62,63,893 38,89,57,41,234

1,87,06,10,317 2,34,39,55,901

TOTAL 3,28,92,53,306 366,66,87,561

APPLICATION OF FUNDS

Fixed Assets 4

Gross Block 4,19,98,272 4,07,60,882

Less: Depreciation 1,76,70,974 1,45,27,055

Net Block 2,43,27,298 2,62,33,827

Add: Capital Work in Progress 36,00,48,284 27,87,01,580

38,43,75,582 30,49,35,407

Current Assets, Loans and Advances

Cash and Bank Balances 5 2,89,09,81,285 2,86,30,70,672

Loans and Advances 6 77,76,85,177 6,54.22,15,747

SUB TOTAL (A) 3,66,86,66,462 9,40,52,86,419

Less:

Current Liabilities and Provisions 7

Current Liabilities 75,49,20,037 6,04,27,08,300

Provisions 88,68,701 8,25,965

SUB TOTAL (B) 76,37,88,738 6,04,35,34,265

Net Current Assets (A-B) 2,90,48,77,724 3,36,17,52,154

Miscellaneous Expenditure

( to the extent not written off or adjusted.) 8 - -

TOTAL 3,28,92,53,306 3,66,66,87,561

The schedules referred to above and the notes attached form an integral part of the Accounts

As per our report of even dateFor Joshi Nair & Associates For and on behalf of Board of Directors of Chartered Accountants MUMBAI RAILWAY VIKAS CORPORATION LTD.Firm Regn No. 119585W

(H.G. Nair) (N. M. Misra) (Vijay Angane)Partner Director (Finance) Company SecretaryMembership No. 039546

Date : 21st June, 2011Place : Mumbai

Balance Sheet as at 31st March, 2011

(P. K. Sharma)Director (Projects) &

Officiating Managing Director

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25

Income & Expenditure AccountFor The Year Ended 31.03.2011

Particulars Sch. No.

As at 31.03.2011

`

As at 31.03.2010

`

INCOME

Service Revenue :

Direction and General Charges 94,674,577 142,808,000

Other income :

Indirect Income 190,970,314 272,035,410

(TDS Rs. 17716107/- (Previous year Rs. 9849774/-)

Other Interest (TDS Rs. 421644/- Previous year Rs. Nil) 4,426,164 138,489

Miscellaneous Income 1,132,438 3,393,817

Total 291,203,493 418,375,716

EXPENDITURE

Establishment Expenses 9 126,051,124 107,773,427

Administrative and Operational Expenses 10 54,439,605 48,792,880

Depreciation 3,447,595 3,278,821

Interest - -

Preliminary Expenses Amortised - 129,200

Total 183,938,324 159,974,328

EXCESS OF INCOME OVER EXPENDITURE 107,265,169 258,401,388

FOR THE YEAR

Less/(Add) : Prior Period Adjustments (Net) 11 3,614,582 426,105

EXCESS OF INCOME OVER EXPENDITURE 103,650,587 257,975,283

Brought forward surplus from Previous year 1,072,731,660 814,756,377

Balance carried to Balance Sheet 1,176,382,247 1,072,731,660

Earnings per Share (Basic and Diluted) 429.06 1,033.61

The schedules referred to above and the notes attached form an integral part of the Accounts

As per our report of even dateFor Joshi Nair & Associates For and on behalf of Board of Directors of Chartered Accountants MUMBAI RAILWAY VIKAS CORPORATION LTD.Firm Regn No. 119585W

(H.G. Nair) (N. M. Misra) (Vijay Angane)Partner Director (Finance) Company SecretaryMembership No. 039546

Date : 21st June, 2011Place : Mumbai

(P. K. Sharma)Director (Projects) &

Officiating Managing Director

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D. SCHEDULE 1

As at As at 31.03.2011 31.03.2010

`

SHARE CAPITAL

AUTHORISED SHARE CAPITAL2,50,000 Equity shares of Rs.1000/- each 25,00,00,000 25,00,00,000

ISSUED , SUBSCRIBED AND PAID UP2,50,000 Equity shares of Rs.1000/- each fully paid up 25,00,00,000 25,00,00,000

Total 25,00,00,000 25,00,00,000

Of the above, following equity shares were allotted to :

Ministry of Railways (127,500 Equity Shares ) 12,75,00,000 12,75,00,000 Government of Maharashtra (122,500 Equity Shares) 12,25,00,000 12,25,00,000

Total 25,00,00,000 25,00,00,000

SCHEDULE 2

As at As at 31.03.2011 31.03.2010

` `

RESERVES AND SURPLUSIncome and Expenditure AccountOpening Balance 107,27,31,660 81,47,56,377 Add: Transfer during the year 10,36,50,587 25,79,75,283

1,17,63,82,247 1,07,27,31,660 Less: Transfer to Corporate Social Responsibility Fund 77,39,258 -

Total 1,16,86,42,989 1,07,27,31,660

`

Schedule Forming Part OfBalance Sheet As At 31.03.2011

26

Schedule Forming Part OfBalance Sheet As At 31.03.2011

SCHEDULE 3

As at As at 31.03.2011 31.03.2010

`

Opening Balance 4,1,23,96,97,135 30,84,49,12,078 Amount Received From :Ministry of Railways

MUTP-I * 2,155,273,273 3,83,74,40,894 MUTP-II 1,05,00,00,000 66,98,00,000

Government of Maharashtra :MUTP-I

Rehabilitation and Resettlement ** 5,35,16,798 13,10,90,978 MUTP (Rail Component) * 95,32,77,725 5,35,51,87,403 Surcharge Adjusted Towards Dues 41,01,09,279 40,12,65,782

MUTP-IIMUTP (Rail Component) 42,50,00,000 -

Total 5,04,71,77,075 10,39,47,85,057

Total MUTP Funds Received (A) 46,28,68,74,210 41,23,96,97,135

Amount Utilised/AdjustedOpening Balance 38,89,57,41,234 28,75,73,98,746 Amount Spent By :

Western Railway MUTP-Phase-I 40,09,85,602 48,09,99,537 MUTP-Phase-IIMUTP-2B 11,6,22,502 -

MMRDAMUTP-I (R&R) 5,40,51,966 13,24,01,978

Central Railway MUTP-Phase-I 68,75,02,960 1,68,70,51,000 MUTP-Phase-IIMUTP-2A 48,80,19,110 51,49,21,102 MUTP-2B 3,06,50,274 -

Mumbai Railway Vikas Corporation MUTP-Phase-I # 2,98,97,10,935 6,95,00,48,998 MUTP-Phase-II MUTP-2A 61,28,04,727 1,39,87,916 MUTP-2B 24,51,74,583 35,89,31,957

Total 5,52,05,22,659 10,13,83,42,488

Total MUTP Funds Utilised (B) 44,41,62,63,893 38,89,57,41,234

Unsecured Funds for Project ( A - B) 1,87,06,10,317 2,34,39,55,901

`

# Includes 124,65,55,477 paid directly by World Bank to the Supplier.* An amount of ` 62,32,77,725 is included in Government of Maharashtra (GoM) and an amount of ` 62,32,77,752 is included in Ministry of Railway (MoR) on account of payments made by the World Bank on behalf of GoM and MoR directly to the Supplier.** Direction Supervision and Management (DSM) charges @ 5% on ` 5,09,68,379 is included in Rehabilitation and Resettlement amount of ̀ 5,35,16,798

`

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Sche

dule

s F

orm

ing

Par

t O

fB

alan

ce S

heet

As

At

31.0

3.20

11

Com

pute

rs 1

,59,8

2,6

94

5,7

8,7

37

67,5

00

1,6

4,9

3,9

31

77,5

5,3

12

20,0

6,8

34

32,8

55

97,2

9,2

91

67,6

4,6

40

82,2

7,3

82

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tments

1,0

6,7

0,1

55

93,6

04

2,5

2,7

16

1,0

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43

22,7

8,4

54

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5,2

67

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77,6

9,6

58

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1,7

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Furn

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s 1

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2,2

63

11,9

3,2

26

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7,9

61

1,3

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28

34,8

4,9

53

7,7

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31

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85

40,3

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99

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29

88,7

7,3

10

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icle

s 1

7,4

5,7

70

-

-

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5,7

70

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11,6

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5,7

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34

Sub T

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) 4

,07,6

0,8

82

18,6

5,5

67

6,2

8,1

77

4,1

9,9

8,2

72

1,4

5,2

7,0

55

34,4

7,5

95

3,0

3,6

76

1,7

6,7

0,9

74

2,4

3,2

7,2

98 2

,62,3

3,8

27

Capit

al W

IP (B

) 2

7,8

7,0

1,5

80

8,3

7,3

8,2

60

23,9

1,5

56

36,0

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62

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33

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6,5

56

1,4

5,2

7,0

55

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7,5

95

3,0

3,6

76

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6,7

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ear

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30

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31,9

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62

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71

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8,8

21

10,9

2,8

38

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(in

`)

SC

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FIX

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Year

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SCHEDULE 5 - CASH AND BANK BALANCES

As at As at 31.03.2011 31.03.2010

`

Cash in hand 1,47,923 29,118

Balances with Banks

In Scheduled Banks

a) In Current Accounts 1,45,58,942 2,22,34,977

b) In Term Deposit Account 2,87,62,74,420 2,84,08,06,577

TOTAL 2,89,09,81,285 2,86,30,70,672

SCHEDULE 6- LOANS AND ADVANCES

As at As at 31.03.2011 31.03.2010

` `

(Unsecured, considered good) Advances recoverable in cash or in kind or for the value to be received 35,82,61,116 26,75,85,932

Share of Surcharge due from

Central Railway 4,41,97,130 3,95,27,774

Western Railway 3,32,33,477 4,98,23,847

Balance with Railway

Central Railway 18,06,60,309 2,64,93,95,351

Western Railway 4,74,01,233 3,31,45,23,056

ICF Chennai (Souhthern Railway) 0 12,40,86,650

Tax Deducted at Source 11,39,31,912 9,72,73,137

TOTAL 77,76,85,177 6,54,22,15,747

`

Schedule Forming Part of Balance Sheet As At 31.03.2011

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SCHEDULE 7 - CURRENT LIABILITIES AND PROVISIONS

As at As at 31.03.2011 31.03.2010

`

CURRENT LIABILITIES : Sundry Creditors 46,92,46,272 3,37,22,73,156

Other Liabilities 8,61,50,960 2,49,19,36,943

Liability towards share of surcharge collected (On behalf of Government of Maharashtra) 41,01,09,279 40,12,65,782 Less: Adjusted towards Project Fund due from Govt. of Maharashtra 41,01,09,279 40,12,65,782

- -

Temporary book overdraft 19,95,22,805 17,84,98,201

(A) 75,49,20,037 6,04,27,08,300

PROVISIONS : - Gratuity 11,29,443 8,25,965 - Corporate Social Responsibility Fund 77,39,258 -

(B) 88,68,701 8,25,965

SCHEDULE 8 - MISCELLANEOUS EXPENDITURE

As at As at As at 31.03.2011 31.03.2011 31.03.2010

` ` `

(to the extent not written off or adjusted) Preliminary expenses : Opening balance - 1,29,200 Less : Amortised during the year - 1,29,200

- -

`

Schedules Annexed To And Partof Balance Sheet As At 31.03.2011

SCHEDULE - 9 ESTABLISHMENT EXPENSES

Year Ended 31.03.2011 31.03.2010

`

Salary, Wages & Allowances 12,19,11,736 10,43,35,774

Contribution to Provident Fund and Employees State 5,57,817 3,71,686

Insurance Scheme

Gratuity Provision (in respect of employees on contract) 3,03,478 2,31,954

Staff Welfare Expenses 32,78,093 28,34,013

12,60,51,124 10,77,73,427

SCHEDULE - 10 ADMINSTRATIVE & OPERATIONAL EXPENSES

Year Ended Year Ended 31.03.2011 31.03.2010

` `

Electricity Expenses 3,3,49,392 27,14,531

Repair and Maintenance

Office Premises 16,24,979 13,74,386

Others 9,14,312 15,62,146

25,39,291 29,36,532

Advertisement Charges 78,33,035 67,04,073

Auditor’s Remuneration

(includes Service Tax)

Statutory Audit Fees 1,17,883 1,15,264

Tax Audit Fees 31,022 30,333

Vat Audit Fees 17,500 17,500

1,66,405 1,63,097

Rent Rates and Taxes 11,29,864 14,26,952

Insurance 46,765 75,073

Travelling and Conveyance 84,91,351 86,70,126

Vehicle Expenses 1,09,66,786 98,56,331

Communication Expenses 30,89,501 39,63,597

Training and Seminar expenses 8,60,113 8,14,466

Printing and Stationary 27,02,145 27,32,614

Hospitality Expenses 25,21,826 23,23,848

Legal and Professional Fees 66,68,777 30,48,409

Director’s Sitting fees - 20,000

Loss on Discarded Assets 2,76,874 1,24,483

Books and Periodicals 57,347 1,41,525

Security services 1,0,47,426 6,82,372

Bank Charges 91,797 59,245

Miscellaneous Expenses 26,00,910 23,35,605

Total 5,44,39,605 4,87,92,880

Year Ended

`

Schedules Forming Part of Income & Expenditure Account For The Year Ended 31.03.2011 M

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SCHEDULE - 11- PRIOR PERIOD ADJUSTMENTS (Net)

Year Ended Year Ended 31.03.2011 31.03.2010

`

Air Travel Domestic (33,579) - MACAP Arrears (245,502) - BMC - (15,348)Books and Periodical 6,167 - Accumulated Depreciation (Computers) (30,612) 35,687 Accumulated Depreciation (Furniture) (13,798) - Accumulated Depreciation (Off. Equipment) (12,287) - Office & Administration Expenses - 24,200 Computer Consumables - 91,054 Contractor Service 683,080 - Consultancy Charges 10,934 - Direction & General Charges - 10,292 Ex-Gratia (1,782) 203,508 Entry Fees 10,000 - Electricity Charges (4,777) - Interest on TDS 8,005 - Hospitality (7,952) - Insurance Charges 3,543 - Inspection Charges 10,314 - Internal Audit Fees 8,265 - Interest on Mobilisation Advance - (251,960)Lease Rent (283,562) - LC Charges (32,472)Professional Fees 7,992 - Misc. Expenses 104,557 - Salary & Wages (12,433) - New Pension Employer 107,091 - Outstanding Exp - 20,877 Professional Tax 2,500 - Repairs and Maint Computer (15,211) 125,133 Repairs and Maint Office Equip 17,648 99,817 Repairs and Maint Office Premises 2,455 - Repairs and Maint Furniture 16,280 - Repairs and Maint Vehicle (33,600) - Security Services 42,480 42,480 Subscription Fees 4,249 - Stationery (345) - Telephone Charges (109,085) (11,321)Training Charges - 3,646 VAT Consultancy - 39,045 Vat Liabilities - 1,242 Vehicle Hire Charges 92,934 7,365 Water Charges - 388 House rent Payable (425,993) - Interest 1,541,498 - Multipurpose Advance (41,342) - Prior Period Income 2,238,922 -

Total 3,614,582 426,105

`

Schedules Forming Part of Income & Expenditure Account For The Year Ended 31.03.2011

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Significant Accounting Policies

Schedule – A

SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of Preparation of Accounts

The accounts have been prepared using historical cost convention and on going concern

basis in accordance with the Generally Accepted Accounting Principles (GAAP) in India

on the accrual basis and in accordance with the Accounting Standards referred to in

Section 211(3C) and other requirements of the Companies Act, 1956. Insurance and

other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements requires the management of the company to

make estimates and assumptions that affect the reported amounts of incomes and

expenses of the period, the reported balances of assets and liabilities and the disclosures

relating to contingent liabilities as of the date of the financial statement.

Wherever changes in presentation are made, comparative figures of previous years are

regrouped accordingly.

(ii) Fixed Assets

Fixed Assets are stated at Cost less accumulated depreciation.

Fixed Assets are eliminated from the financial statements either on disposal or when

retired from active use. Such assets are removed from the fixed asset records on

disposal. Generally such retired assets are disposed off soon thereafter.

Expenditure relating to existing fixed assets is added to the cost of the fixed asset where

it increases the performance / life of the asset as assessed earlier.

The Carrying amount of assets is reviewed at each balance sheet date for indicators of

impairment based on internal/external factors. Impairment occurs when the carrying

value exceeds the present value of the future cash flows expected to arise from the

continuing use of the assets and its eventual disposal. The impairment loss to be

expensed is determined as the excess of the carrying amount over the higher of the

assets' net sales price or present value as determined above.

(iii) Depreciation

Depreciation has been provided on Straight Line Method at the rates prescribed in

Schedule XIV of the Companies Act, 1956 and on pro-rata basis from the date of addition

in respect of additions during the year.

Depreciation on assets, the individual cost of which does not exceed five thousand

rupees are provided at the rate of 100% in the year put to use.

34

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D. (iv) Foreign Exchange Transactions

Expenditure incurred in foreign currency is accounted at the rates prevalent at the time

when expenditure is incurred.

Foreign currency current assets and liabilities are converted at the contracted year-end

rate, as applicable.

Exchange difference on account of acquisition of fixed assets is expensed through

Income and Expenditure Account. The Exchange difference arising for Project

expenditure is transferred to the respective project. Other exchange differences are

recognized in the Income and Expenditure Account.

The transaction date and invoice date is different due to routing of Invoice through

various departments/division for approval. Company is regularly and consistently

following the same accounting policy.

(v) Retirement Benefits

a) Retirement benefits in respect of employees on deputation from Indian Railways

are provided as per the rules and regulations applicable to the Indian Railways,

also a sample size of employees for valuation on actuarial basis was conducted to

confirm with the AS-15 accounting standard.

b) Retirement benefits in respect of employees on contract are provided as per

actuarial valuation.

(vi) Preliminary Expenses

The provision of revised Accounting Standard (AS-26 Intangible Assets) applies to

Preliminary expenses incurred on or after 01/04/2004. Since Preliminary Expenses are

incurred before 01/04/2004, the company has, as per its original policy amortized

Preliminary Expenses over a period of ten years from the year of incorporation.

(vii) Revenue Recognition

a) The Company provides for Direction and General Charges (D&G) at specified

percentage of expenses incurred on projects executed by the company and as per

the Memorandum of Understanding (MOU) signed between MRVC and

Government of India / Government of Maharashtra acting through Central and

Western Railway and Mumbai Metropolitan Regional Development Authority

(MMRDA) and as certified by them on the ongoing Mumbai Urban Transport

Projects (MUTP).

b) Interest on Term Deposits is accrued as per schemes of various Banks with whom

the deposits have been placed.

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(viii) Project Accounting

The amount spent on projects, which are being implemented by the Company and

covered by separate budgetary allocation in the budget for Indian Railways and

contribution from Government of Maharashtra, are accounted for as “MUTP Funds

Utilized” and miscellaneous receipts on account of sale of tender documents are reduced

from the project funds utilized and share of surcharge received on tickets issued by

Indian Railways pertaining to the Government of Maharashtra (GOM) is disclosed as

MUTP funds received from GOM. In respect of projects executed by MRVC,

miscellaneous receipts on account of sale of tender documents are treated as

miscellaneous income and credited to Income & Expenditure account

(ix) Prior Period and Extraordinary Items

Income and expenditure pertaining to prior period as well as extraordinary items, where

material and affecting the operating results are disclosed separately.

(x) Contingencies and Events occurring after the Balance Sheet date

Accounting for contingencies (gains and losses) arising out of contractual obligations are

made only on basis of mutual acceptance.

Where material events occurring after the date of balance sheet are considered upto the

date of approval of accounts by the Board of Directors.

(xi) Assets of Mumbai Urban Transport Project (MUTP)- Rail Component

MUTP consists of various works, out of which the works pertaining to the rail component

are being executed by different agencies e.g. Western Railway, Central Railway and

MRVC. To execute these works MRVC either gives advance payment to these agencies or

alternatively the amounts spent by these agencies are reimbursed to them on regular

basis.

According to the agreement-dated 13.09.2002 entered by MRVC with Ministry of Railway

(MOR) all the operating assets of Rail Component under MUTP would be the property of

Indian Railways only. Hence all the assets, which are created under the MUTP (Rail

Component Division), whether directly by MRVC or through Western Railway and

Central Railway are the property of the Indian Railways, and hence does not form part of

Fixed Assets of the Company

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D. The amount spent by MRVC directly and through the different agencies viz. Western

Railway and Central Railway has been disclosed in Schedule 3 as “Unsecured Funds for

Projects” under the head “Amount Utilised / Adjusted”.

(xii) Construction of Residential Quarters for staff

MRVC is constructing houses for staff on the land provided by Railway. As per Railway's

guidelines, the ownership of the land and flats will continue to remain with the Indian

Railways and MRVC will bear the entire cost of construction of the flats. Fifty percent

houses would be leased to MRVC for a period of 30 years at nominal license fee of INR

1,000/- (Rupees One Thousand Only) per annum per house. The cost of construction of

the flats on completion of construction would be capitalized as “Leased Flats” to be

amortised over the period of the lease. INR 36,00,48,284/- is spent up to the balance

sheet date, which is shown as Capital WIP under Fixed Assets.

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SCHEDULE B :

NOTES TO ACCOUNTS

1. No provision for Income tax has been made since the company has obtained exemption

under section 12A of the Income Tax Act.

2. The Director of the Office of the Principal Director of Commercial Audit & Ex-Officio

Member Audit Board-I had vide letter dated 6th December 2006, to the company,

advised that the Company get an opinion from the Expert Advisory Committee of the

Institute of Chartered Accountants of India (ICAI) as regards the treatment of projects

being executed by the company departmentally only or including the deposit works

executed through Western Railway, Central Railway and MMRDA. The Company has

accordingly forwarded the matter to the Expert Advisory Committee of ICAI. The opinion

from the Expert Advisory Committee has been received by the company on 04.02.2009.

Expert Advisory Committee has suggested the accounting treatment on the basis of

“Flow of the economic benefit or Service potential of the asset created in the

project”. The accounting policy adopted by the company is correct and in line with the

opinion of the committee as the economic benefit of the asset created after completion of

the project will flow to the Indian railways as per agreement dated 13.09.2002 to whom

the asset will be transferred.

3. The Company does not operate with a profit motive and based on the opinion of two

Chartered Accountant Firms, Income and Expenditure Account is prepared in lieu of

Profit and Loss Account.

4. The company has acquired an office premises under an operating lease deed vide dated

28.6.2001, 01.04.2004, 06.09.2004 of lessor (Western Railways) wherein the tenure of

the lease is not mentioned.

5. The company has provided Foreign Services Contribution (FSC) of INR 86,54,590/- on

estimated basis towards terminal benefits of the Indian Railways employees working on

deputation.

6. No provision for Deferred Tax in accordance with Accounting Standard – 22 issued by the

Institute of Chartered Accountants of India has been made in the accounts, since the

Company has obtained exemption under section 12 A of the Income Tax Act.

7. Particulars of remuneration paid to Directors are as under: (INR)

Particulars As at31.03.2011 As at31.03.2010

Salary and Allowances 73,40,640 55,58,443

Contribution to Railways

(Towards Terminal Benefits) 8,48,685 8,23,966

Others NIL 24,849

Total 81,89,325 64,07,258

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D. 8. The Expenditure incurred by Central Railway, Western Railway, and Mumbai

Metropolitan Regional Development Authority (MMRDA) have been accounted based on

the respective audited / un-audited statements received from the respective zones. The

Direction and General Charges are computed and accounted based on the expenditure

as mentioned above.

9. Expenditure in Foreign Currency is as under:(INR)

Particulars As at31.03.2011 As at31.03.2010

Capital goods for projects (C I F Basis) 79,03,91,039 2,22,67,18,731

Consultancy (Net of TDS) 57,74,864 1,08,12,195

Traveling 5,47,991 7,07,718

Others NIL 36,802

10. a) As per the information available with the Company, there are no outstanding dues

payable to any Small Scale Industrial Undertaking as at 31st March 2011.

b) The company has not received any information from suppliers regarding their

status under the Micro, Small and Medium Enterprise Development Act, 2006 and

hence disclosures, if any, relating to amount unpaid as at the year end together

with interest paid / payable as required under the said Act have not been

furnished.

11. The estimated amount of contracts remaining to be executed by MRVC (excluding the

contracts being executed by the Central Railway, Western Railway & MMRDA) on capital

account and not provided for (net of Advances) INR 140,16,50,513/- (Previous year INR

295,19,61,497/-).

12. Loans and Advances include loan given to director amounting INR Nil (Previous Year INR

NIL). Maximum outstanding during the year is INR NIL (Previous Year INR 13,340/-)

13. The following are the disclosures in respect of the calculation of earning per share for the

year ended 31st March 2011.

Particulars 31.03.2011 31.03.2010

Numerator :Excess of Income over Expenditure after tax and before Prior Period Items (INR) 10,72,65,169 25,84,01,388

Denominator :Weighted Average number of equity share (Nos) 2,50,000 2,50,000

Earnings per Share (Basic and Diluted) (INR)=Numerator/Denominator 429.06 1033.61

14. The balances shown under the head of Unsecured Funds for Project, Loans and

Advances and Current Liabilities are subject to confirmation and reconciliation, if any.

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15. Additional information pursuant to provisions of paragraph 3, 4C and 4D of Part II of

Schedule VI of the Companies Act, 1956 have been given to the extent applicable to the

business of the Company.

16. Previous year’s figures have been regrouped/rearranged and reclassified wherever

necessary to conform the current year’s presentation.

As per our report of even date For and on behalf of Board of Directors Mumbai Railway Vikas Corporation Ltd.For Joshi Nair & AssociatesChartered Accountants Firm Regn. No. 119585W

(H. G. Nair) (N.M. Misra) (P.K Sharma)

Partner Director – Finance Director-Projects & Membership No. 039546 Officiating Managing Director

Place: Mumbai (Vijay Angane)

stDate: 21 June,2011 Company Secretary

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D. Balance Sheet Abstracts and Company's General Business Profile:-

(I) Registration No. : 11-120765

Balance sheet Date : 31.03.2011

State Code : 11

(ii) Capital raised during the year (Amount in Rs. thousands)

(a) Public - Nil

(b) Rights - Nil

Bonds - Nil

(d) Private Placement - Nil

(iii Position of Mobilization and Deployment of Funds (Amount in Rs. Thousands)

Total liabilities - 4053042

Total Assets - 4053042

Sources of Funds

Paid up Capital - 250000

Reserves & Surplus - 1168643

Unsecured Funds for project - 1870610

Secured Loans - Nil

Unsecured Loans - Nil

Application of Funds

Net Fixed Assets - 384375

Net Current Assets - 2904878

Misc. Expenditure - Nil

(iv) Performance of the Company (Amount in Thousands of Rs.)

Service Revenue - 94675

Other Income - 196528

Total Expenses - 183938

Profit before Tax - 107265

Tax adjustments of earlier years - --

Profit after Tax - 107265

Earning per share - 429.06

Dividend Rate % - Nil

(v) General Names of - Not Applicable

Principal product

(c)

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