BA WEJA & KA UL Chartered Accountants Independent Auditor's Report To the Members of Dedicated Freight Corridor Corporation of India Limited Report on the Ind AS Financial Statements We have audited the accompanying Ind AS financial statements of Dedicated Freight Corridor Corporation of India Limited ("the Company"), which comprise the Balance Sheet as at 31" March, 2017, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the statement of changes in equity for the year then ended and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Ind AS Financial Statements The Company's Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the State of Affairs (Financial position), Profit (Financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued there under. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregilarities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. 65h4 - 306 corporate Towers, 85A Zamrudpur, Greater KCadash - 1, New Delhi - 110048. Tel: 29231090,29248587. . lmail' bakauditg1mnailo~fm 9A CC& Baweja & Kaul CharteredAccountant We conducted our audit of Ind AS Financial Statements in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the lud AS financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the State of Affairs (Financial position) of the Company as at 31 March, 2017, and its Profit (Financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date. Emphasis of Matters We draw attention to the following matters in the Notes to the Ind AS financial statements: 1. Note No 9 - Other Non-Current Assets which includes Capital Advances such as Advance for Shifting of Utilities, Advance for ROB/RUB and Advance for Capital Works-Others amounting to Rs.3408.71 Crores (Railways Rs.1633.11 crores , Non Railways Rs. 1775.60 crores). Out of these advances, an amount of Rs 1385.51 crores (Railways Rs.648.25 crores, Non-Railways Rs.737.26 crores) is pending for adjustment / utilization for more than three years. 2. Note No 21- Other Current Financial Liabilities which includes Provisions for Expenses payable, Project expenses payable and expenses payable - SLAO amounting to Rs 212.89 crores (Included in other payables amounting to Rs.487.99 Crores). Out of these provisions, an amount of Rs.0.61 crores remained unadjusted/ unpaid for more than three years. D C Baweja & Kaul Chartered Accountants 3. Note No 41 wherein, it has been stated that the Balances shown under Material issued to Contractors, Claims recoverable, Advance for Capital Expenditure, Advances to Contractors, Recoverable/Payable from/to Ministry of Railways, Sundry Creditors and Deposits/Earnest Money from Contractors are subject to Reconciliationl/Confirmation and respective consequential adjustments. Our ppinion is not modified in respect of matters stated under Emphasis of Matters. Report on Other Legal and ReulatorY ReqUirements 1 As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in the paragraphs 3 and 4 of the Order. 2. The Comptroller and Auditor General of India has issued directions indicating the areas to be examined in terms of sub section (5) of Section 143 of the Companies Act 2013, the compliance of which is set out in "Annexure B". 3. As required by Section 143 (3) of the Act, we report that: a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b. in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; c. the balance sheet, the statement of profit and loss, the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of account; d. in our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rule issued thereunder; e, In terms of Notification No. G.S.R. No. 463(E) dated 5th June, 2015 issued by the Ministry of Corporate Affairs, the provisions of Section 164(2) of the Act regarding disqualification of directors, are not applicable to the Company; f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C"; and D ACC Baweja & Kaul Chartered Accountanis g. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 read with Companies (Audit and Auditors) Amendment Rules 2017, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements. Refer Note No. 32 to Ind AS the financial statements; ii. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; iii. The provision of transferring the amount to the Investor Education and Protection Fund is not applicable to the company. iv. the Company has provided requisite disclosures in its Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 in Note No. 10 to the Ind AS financial Statements. Based on our audit procedures and relying on the management representationi,- we report that the disclosures are in accordance with the books of accounts maintained by the company. For BAWEJA & KAUL Chartered Accountants S a FRN: 005834N CA Samvit K Gurtoo Partner AC M.No.: 090758 Place: New Delhi Dated: 30.06.2017 Baweja & Kaul Chartered Accountants Annexure A to the Independent Auditor's Report The annexure referred to in paragraph 1 under the heading 'Report on Other Legal and Regulatory Requirements' section of our report of even date to the members of Dedicated Freight Corridor Corporation of India Limited on the Ind AS financial statements for the financial year ended on 31 March 2017 i. (a) The company has maintained proper records showing full particulars including quantitative details and situation of Property, Plant and Equipment. (b) The company has a regular program of physical verification of its fixed assets once in three years. In our opinion, this periodicity of physical verification is reasonable having regard to the nature of its assets and the size of the company. During the year the company has conducted Physical Verification of Property, Plant and Equipment for those units for which Physical Verification was to be conducted as per rotation. According to the information and explanations given to us by the management, no material discrepancies as compared to book records were noticed in respect of Property, Plant and Equipment, physically verified during the year. (c) According to the information and explanations given to us by the management and on the basis of our examination of the records of the company, the company does not have any immovable properties in its name except two flats on leasehold basis amounting to Rs 309.34 Lakh (Deemed Cost), as disclosed in Note No. 3 to the Ind AS financial statements, in respect of which leasehold deed is yet to be executed. ii. The company has been incorporated for running and maintaining dedicated freight corridor. Since the railway freight corridors are under construction, it does not hold any physical inventories. Therefore, clause 3(ii) of the Order is not applicable. iii The Company has not granted any loans, secured or unsecured to the companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. In view of this, sub clauses (a), (b), and (c) of clause 3(iii) of the Order are not applicable. iv. In our opinion and according to the information and explanations given to us by the management, the company has not given any loans, investments, guarantees and $ACCO) Baweja & Kaul CharieredAccounltans securities as per section 185 and 186 of the Companies Act, 2013. Accordingly, clause 3(iv) of the Order is not applicable. v. In our opinion and according to the information and explanations given to us by the management, the Company has not accepted any deposits from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under, consequently the directives issued by the Reserve Bank of India and provisions of the Companies Act, 2013 and rules framed there under are not applicable. vi. According to the information and explanations given to us by the management, the Central Government has not prescribed for the maintenance of cost records under sub section (1) of section 148 of the Companies Act, 2013 in respect of any of the activities of the company. vil. (a) In our opinion and according to the information and explanations given to us by the management and on the basis of our examination of the records of the company, amounts deducted / accrued in the books of accounts in respect of undisputed statutory dues including provident fund, income tax, sales tax, service tax, duty of customs , duty of excise, Value added tax, Cess and any other material statutory dues have generally been regularly deposited during the year by the Company, with the appropriate authorities. We have been informed that Employee's State Insurance Scheme is not applicable to the company. According to the information and explanations given to us, no undisputed demand payable in respect of aforesaid statutory dues was in arrears as at 3lt March 2017 for a period of more than six months from the date they became payable. (b) According to the information and explanation given to us by the management and as per the records of the Company, the following dues of income tax and Sales Tax/VAT have not been deposited on account of dispute. Name of the Statute Nature of Dues Amount Year to Forum at which case is (R(s. in which it pending Lakhs) pertains Income Tax Act, Income Tax 16.67 2011-12 ITAT, New Delhi ~ACC3 Baweja & Kaul Chartered Accountants Income Tax Act, Income Tax 142.10 2013-14 CIT (Appeals) Income Tax Act, Income Tax 218.20 2014-15 CIT (Appeals) Income Tax Act, Income Tax 118.06 2015-16 CIT (Appeals) Upto ACIT - TDS, Income Tax Act, TDS 4.65 3 3ptoT New Delhi 1961 31,03.2013 Sales Tax Act Sales 2.97 2013-14 VAT Authority Tax/VAT viii. Based on our audit procedures and according to the information and explanations given to us by the management, the company has not defaulted in repayment of loans and borrowings to any financial institution, bank and government. According to the information and explanation given by the management the company has not issued any debentures and accordingly the information regarding debentures is not applicable. ix. Based on our audit procedures and according to the information and explanations given to us by the management, the company has not raised any funds by way of initial public offer or further public offer (including debt instruments). However, the company has raised the term loans during the financial year ending 31' March, 2017 and the same were applied for the purpose for which those were raised. x. Based on our audit procedures and according to the information and explanations given to us by the management, no fraud by the company or any fraud on the company, by any person including its officers/employees, has been noticed or reported during the year. xi. In view of the exemption given in terms of Notification No. G.S.R. No. 463(E) dated 5h June, 2015 issued by the Ministry of Corporate Affairs, the provisions of Section 197 read with schedule V to the Companies Act, 2013 regarding managerial remuneration are not applicable to the company. xii. According to the information and explanations given to us by the management, the company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the company. A0 Baweja & Kaul Chartered Accowants xiii. According to the information and explanations given to us by the management and on the basis of our examination of the records of the Company, transactions with related parties are in compliance with the provisions of section 177 and 188 of the Companies Act, 2013, wherever applicable and the details of such transactions have been.disclosed in the notes to the Ind AS financial statements as required by the applicable accounting standards. xiv. Based on our audit procedures and according to the information and explanations given to us by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, the provisions of clause 3(xiv) of the Order are not applicable to the company. xv. In our opinion and according to the information and explanations given to us by the management, the company has not entered into any non-cash transactions with directors or persons connected with them. Therefore the provisions of clause 3(xv) of the Order are not applicable to the company. xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Therefore the provisions of clause 3(xvi) of the Order are not applicable to the company. For.BAWEJA & KAUL Chartered Accountants FRN: 005834N CA Samvit K Gurtoo D AcC Partner M.No.: 090758 Place: New Delhi Dated: 30.06.2017 Baweja & Kaul Chartered Accountants Annexure B to the Independent Auditor's Report The Annexure referred to in paragraph 2 under the heading 'Report on Other Legal and Regulatory Requirements' section of our report of even date to the members of Dedicated Freight Corridor Corporation of India Limited on the Ind AS financial statements for the financial year ended on 31st March 2017 S. No. Directions Our Report Whether the company has clear According to information and explanations given to us by title/lease deeds for freehold and the management, the Company does not own any land leasehold land respectively? If not, either on freehold or leasehold basis. However, the please state the area of freehold and company has leasehold rights of two flats of 199.5 sqm. leasehold land for which title/lease each, in respect of which leasehold deed is yet to be deeds are not available. executed. 2 Whether there are any cases of According to information and explanations given to us, waiver/write off of debts/loans/interest there are no cases of waiver/write off of etc., if yes, the reasons therefore and debts/loans/interest etc. the amount involved. 3 Whether proper records are maintained The Company does not maintain any inventories. for inventories lying with third parties According to information and explanations given to us, the & assets received as gift/grant(s) from company has not received any assets as gifts/grant(s) from Government or other authorities? government or other authorities. For BAWEJA & KAUL Chartered Accountant FRN 58394N CA Samvit K Gurtoo A Partner ' C M. No.: 090758 Place: New Delhi Dated: 30.06.2017 Baweja & Kaul Chartered Accountants Annexure C to the Independent Auditor's Report Annexure referred to in paragraph 3(f) under the heading 'Report on Other Legal and Regulatory Requirements' section of our report of even date to the members of Dedicated Freight Corridor Corporation of India Limited on the Ind AS financial statements for the financial year ended on 31st March 2017 Report on the Internal Financial Control under Clause (i) of Sub-section 3 of section 143 of the Companies Act, 2013 ("the Act") We have audited the internal financial controls over financial reporting of Dedicated Freight Corridor Corporation of India Limited ("the Company") as on 31' March 2017 in conjunction with our audit of the Ind AS financial statements of the company for the year ended on that date. Management's Responsibility for Internal Financial Controls The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditors' Responsibility Our responsibility is to. express an opinion on the Company's internal financial controls over financial reporting based on our audit We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. &Co AC Baweja & Kaul Chartered Accountants Our audit in ves performing procedures to obtain audit evidence about the adequacy of the internal finaci controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls sy al reprting included obtaining an understanding of internal financial financial controls over financi ap e risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting. Meaning of Internal Financial Controls Over Financial Reporting A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Id AS financial statements for external Purposes in accordance with generally accepted accounting principles. including the Indian Accounting Standards (Ind AS). A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preParation of d AS financial statements inaccordance with generally accepted accounting Principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of the management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the ind AS financial statements. Inherent Limitations of Internal Financial Controls Over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion in our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating SAG& &D AGO Baweja & Kaul Chartered Accountants effectively as at 31 March, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. For BAWEJA & KAUL Chartered Accountants FRN: 005834N CA Samvit K Gurt Partner M. No.: 090758 C Place: New Delhi Dated: 30.06.2017 Dedicated Freight Corridor Corporation of India Limited Balance Sheet as at 31 March 2017 (AU amounts are in Rupees lacs, uniess othewise statedO NtsA Pt Asat Msat Notes 31 March 2017 31 March 2016 1 Apri 2015 ASSETS Non-current assets Property, plant and equipment 3 1,453.36 1,496.17 1,182,58 Capital work-in-progress 4 886,163.98 568,194.92 321,653.03 Other intangible assets 5 73.88 139.86 41.37 Intangible assets under development 6 1,130.76 989.54 911.88 Financial assets (i) Other non-current financial assets 7 229.98 610.62 561.96 Deferred tax assets (not) 8 2,132.37 776.62 Other non-current assets 9 681,571.25 453,367.19 286,L13 Total non-current assets 1,572,755.58 1 025,574.92 611a2L95 Current assets Financial assets (i) Cash and cash equivalents 10 144,600.88 157,507,81 79,685.71 (ii) Bank balancesother than (i) above 11 218,805.75 2,683.12 3,382.70 (iii) Other current foincial assets 12 4,875.74 5,860.26 1,977.85 current tax a s sets (net) 13 1,538.52 305.08 440.50 currenta assets 14 843.59 343.94 310.49 Total current assets 370,664.48 166,700.21 85,79125 Total assets 1,943,420,06 U219,25.13 697,069.20 EQUITY AND LIABILITIES Equity Equity 15 765,82729 480,266.88 371,566.88 Equity share capit 16 23,434.56 301,416.06 119,710.62 Total equity 789,261.85 781,682.94 491,277.50 Liabilities Non-current liabilities Financial liabilities (i) Borrowings 17 694,545.99 326,899.33 143,988.43 (i) Other nongcurret financial liabilities 18 50,186.44 28,133.96 14,199.07 Long-tern provisions 19 1,456.77 1,031.87 557.60 Other non-current llities 20 32,242.34 5,932.86 5,751.43 Total non-current liabilities 778,431.S4 361,998.02 164,496.53 Current liabilities Financial liabilities (i) Other financial liabilities 21 364,885.58 41,123.84 35,809.57 Other current liabilities 22 10,699.76 7,273.63 5,448.91 Short-term provisions 23 141.33 . 8.63 34,85 Current tax liabilities (net) . 24 7 4 114.07 1.84 Total Current liabilities 375,726.67 48417 41,257 Total liabilities 1,154,158.21 410,592.19 205,791. Total equity and liabilities 1,943,420.06 1,192,215.13 697a9.20 The accompanying notes are an integral part of these financial statements This is the Balance Sheet referred to in our report of even date For Baweja & Kaul For and on beha;!of Board of'Directors ofDedicated Freight Corridor Chartered Accontants Corporation ofIndia Limited ICAIFi No 0583 A *, CAS tAdesh Shara Naresh Salacha Menu Kapoor Catery Managing Director Director - Finance Company Secretary MembershipNo . 090758 \NI-Ip DIN-7022393 DIN 0000843812 ACS-18954 MembrshiNo-0075 AC- Place New De1h Place ;New Delhi Dated 701t-Of Dated: Dedicated Freight Corridor Corporation of India Limited Statement of Profit and Loss for the year ended 31 March 2017 (All amounts are in Rupees lacs, unless otherwise stated) For the year ended For the year ended Notes 31 March 2017 31 March 2016 Revenue Revenue from operations Other income 25 15,138.10 10,082A2 Total income 15,138.10 10,082.42 Expenses Employee beqefits expense 26 Finance costs 27 57.27 - Depreciation and amortisation expense 28 255.25 21110 Other expenses 29 2,999.73 2,387.21 Total Expenses 3,312.25 2,598.31 Profit/ (loss) before tax 11,825.85 7,484.11 Tax expense: 5 - Current tax 5,576.03 (3,408.35 Deferred tax (1,346.52) (774.08) Profit/ (loss) for the year (A) 7,596.34 4,849.84 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurement of defined benefit plans (26.66) (7.35) Income tax relating to remeasurernent of defined benefit plans 9 2.54 Total other comprehensive income for the year (B) (17.43) (4.81) Total comprehensive income for the year (A + B) 7,578.91 8,45.03 Earnings per equity share 30 Basic 9.92 10.33 Diluted 9.92 10.08 The accompanying notes are an integral part of these financial statements .This is the Statement of profit and loss referred to in our report of even date For Baweja & Kaul For and on behWilof Board of Directors of Dedicated Freight Chartered Accountants Corridor Corporation of India Limited ICAI F' eg o. 058 CA Samvit K Gurtoo Adah Sh Naresh Salecha Meenu Kapoor Partner o Managing Director Director - Finance Company Secretary Membership No -090758 DIN -7022393 DIN -0000843812 ACS - 18954 Place :New Delhi Place : New Delhi Dated: Dated : 0 .1 )-* Dedicated Freight Corridor Corporation of India Limited Statement of cash flows for the year ended 31 March 2017 (All amounts are in Rupees lacs, unless otherwise stated) For the year ended For the year ended 31 March2017 31 March2016 A. Cash flow from operating activities 11,825.95 7,484.12 Net Profit before tax Adjustment for:- 25525 211.10 Depreciation (14,550.8) (9,869.17 Interest income on financial assets measured at amortised cost - Flexi deposits (2,469.82) (2,173.95) Operating profit before working capital changes Movements in working capital:- 2,61L38 (1,198.39) (Increase)/ Decrease in other financial assets 356.89 527.30 (Increase)/ Decrease in other assets 311,045.55 (2,793.10) Increase / (Decrease) in other financial liabilities 0.00 (0.00) Increase / (Decrease) in provisions 29,735.62 2,006.15 Increase / (Decrease) in other liabilities 29,79.62 2,619 Cash Generated/ (used in) operations 341,279.62 (3,631.99) Less: Income Tax Paid (not of refunds) 334,356-07(6,792769 Net Cash generated from (used in) operating activities (A) 334,35.07 (C792. B. Cash flow from investing activities Purchase of property, plant & equipments including capital work in progress & asset under development (287,882.70) (219,856.45) Sale of property, plant & equipments 8.36 15.21 Net movement in other bank balances (216,122.61) 699.60 Interest received from bank deposits (Increase)y Decrease in capital advances (228,204.06) (166,446.06) Net Cash Generated / (Used in) Investing Activities (B) C. Cash Flow from Financing Activities Proceeds from Share Application Money 285,560.41 Net proceedsl(Repayment) of Long Term Borrowings 374,014.78 177,788.02 Interest Expense Paid (3,598.87) (1,206.79) Net Cash generated I (used in) Financing Activities C 370,415.91 462,141.64 Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) (12,906.93) 77,822.10 Cash and cash equivalents at the beginning of the year 157,507.81 79,685.71 Cash and cash equivalents at the end of the year 144,600.88 157,507.81 As per our report of even date attached For BaweJa & Kaul For and on behalf of Board of Diredtors Dedicated Fre4kh Chartered Accountants Corridor Corporation Of India Lindied 0CIF e . 0583 ta A aA CA Sanivit K Gurtoo zharma Naresh Salecha Meenu Kapoor Partner $Managing Director Director - Finance Company Secretary -Membership No - 090758 %ODIN -7022393 DIN -0000843812 ACS - 18954 -Place New Delhi Place : New Delhi Dated: Dated:$8 1511,4 q Dedicated Freight Corridor Corporation of India Limited Statement of changes in equity for the year ended 31 March 2017 (All amounts are in Rupees las, unless otherwise stated) (a) Equity share capital As at 31 Marc 2017 As at 31 Marh2016 No. of shares Amount No. of shares Amount Balance at the beginning of thc Year! 48,026,688 480,266.88 37,156,688 371,566.88 Changes in equity share capital during the year . 28,556,041 285,560.41 10,870,000 108,700.00 Balance at the end of the reporting period 6 4 (b)Share application Reserves & surplus ReOeasureqeut Tot money pending Reaie eanig of defined benefit allotment plans Balance at 1 April 2015 108,700.00 11,010.62 119,710.62 Changes in accounting policy / prior period errors Restated balance at the beginning of the reporting period 108,700.00 11,010.62 H19,710,62 Profit for the year 4,849.84 4,849.84 Other comprehensive income/ (loss) for the year (4.81) (4.81) Total comprehensive income for the year 108,100.00 15,860.46 (4.81) 12455_ Shares issued during the year (108,700.00) (108,700.00) Additional share application money received during the year 285,560.41 285,560.41 Balance at 31 March 2016 285,560.41 15,860.46 (4. 1 1,416.06 Changes in accounting policy / prior period errors Restated balance at the beginning of the reporting period 285,560.41 1560.46 (4.81) 301,416.06 Profit for the year other comprehensive income for the year (17.43) (17.43) Total comprehensive income for the year Shares issued during the year (285,560.41) Additional share application money received during the year Balance at 31 March 2017 -23 45 680 (22.24) 23,43456 As per our report of even date attached For Bawoja & Kaul Far and on behf BoaRd ofDiretors Decated Freight CorrTor Corpoa om Chartered Accou n of indbn Limited m oney p endin R e ai e ea ni g la.s .14,84.84N.O,849 & CA SainvitKuitoo Adesh Shamal NarcshSakecha. Macau Kapoor Partner A0 MaaigDrco Director - Finance Company Scetay MembershipNo- 007581 DIN - 7022393 DIN -10000843812 ACS, -18954 place : New Delhi Place :New Delhi Dated: Dated:i - Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 1. Reporting Entity Dedicated Freight corridor Corporation of India Limited (herein after referred as 'DFCCIL' or 'the Company') is domiciled in India. The Company's registered office is at 5th Floor, Pragati Maiclan, Metro Station Building Complex, New Delhi - 110001 DFCCIL has been setup under the administrative control of Ministry of Railway for the construction, maintenance and operation of the Dedicated Freight Corridor. 2. Significant Accounting Policies The Company has consisteitly applied the following accounting policies to all periods presented in the financial statements. (I) Basis of preparation These financial statements have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard ('Id AS'), prescribed under Section 133 of the Companies Act, 2013 read with relevant ules issued thereunder; or by the Institute of Chartered Accountants of India, as applicable and other accounting principles generally accepted in India. The financial statement up to year ended 31 March, 2016 were prepared in accordnce with Generally Accepted Accounting Principles (GAAP) in India and complied with the ap plicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2014 issued by the Central Government and as per relevant provisions of the Companies Act, 2013 read together with Paragraph 7 of The Companies (Accounts) Rules, 2014. The financial statements for the year ended 31 March, 2017 are the first financial statements of the Company prepared under fd AS. An explanation of how the transition to Ind AS has affected the reported financial position, financial performance and cash flows of the Company is provided in note 42. These financial statements were authorised for issue by the Board of Directors on 22.06.2017. (ii) Basis of measurement The financial statements have been prepared on a historical cost basis. (iii) Functional and presentation currency These financial statements are presented in Indian National Rupee ('INR, which is the Company's functional currency. All amounts have been rounded to the nearest lacs, unless otherwise indicated. (iv) Use of judgments and estimates In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. R es are recognised prospectively. AC Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 A. Judgements Information about the judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements have been given below: - Leases: whether an arrangement contains a lease - Classification of leases: Classification of leases under finance lease or operating lease requires judgment with regard to the estimated economic life and estimated cost of the asset. The Company hat analysed each lease contract on a case to case basis to classify the arrangement as operating or finance lease, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the fair value of the asset. B. Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment is included below: - Measurement of defined benefit obligations: key actuarial assumptions; - Recognition of deferred tax assets: availability of future taxable profit against which carry-forward tax losses can be used, - Impairment test: key assumptions underlying recoverable amounts, including the recoverability of development costs; - Useful life of property, plant and equipment and intangible assets . Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources (v) Property, plant and equipment Recognition and measurement The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. In case where the final settlement of bills with contractors is pending, but the'asset is complete and ready to use, capitalisation is done on estimated basis subject to necessary adjustment, including those arising out of settlement of arbitration/ court cases, in the year(s) of final settlement. - Capital Work-in-Progress is carried at Cost. Expenditure during construction "net'of incidental income is capitalized as part of relevant assets. - Capital stores are valued on weighted average cost. If significant parts of Ari item of property, plant and equipment have different useful lives, then they are accounted for as a separate items (major components) of property, plant and equipment. Any gain on disposal of property, plant and equipment is recognised in Profit and loss account. Transition to Ind AS On transition to Ind AS, the Company has ejected to continue with the carrying value of all its property,. plant and equipment recognised as at I April, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment. SubsequentMesrmn Subsequent expenditure is capitalised only if it is probable that the future eco beciated with the expenditure will flow to the company Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 Depreciation -aabssfoi Otedt-O hc Depreciation on property, plant and equipment is charged on pro-rata basis from! upto the date on which the asset is avilable for use/ disposal. d Para 219 of Indian Railway Finance Depreciation on property plant and equipment as peas of Railway Ince Code Volume I which specifies the normal life of the various classes of Railway Assets. In case a particular component of property plant and equipment is not available in the said Pamn 219 of Indian - Ralwa Fianc Coe, hendepreciation on these assets are provided on Straight Line Method using Railway Finance Code, then dle e the Companies Act, 2013 except in case of certain assets the useful life have been determined based on technical evaluation done by the management's expert which are lower than those specified by Schedule II of the Companies Act, 2013, in order to reflect the actual usage of the assets. Property plant and equipment created on Leasehold Land and Leasehold Premises Improvements are depreciated fully over the residual period of lease of respective Land! Leasehold Premises or over the life of respective asset as specified in Schedule I of the Companies Act, 2013, whichever is shorter. Where the life and / or efficiency of an asset is increased due to renovation and modernization, the expenditure thereon along-with its unamortized depreciable amount is charged prospectively over the revised / remaining useful life determined by technical assessment. Where the cost of the depreciable assets has undergone a change during the year due to price adjustment, change in duties or similar factors the unarnortised balance of such assets is depreciated prospectively over the residual life of such assets. Depreciation methods, useful lives and residual values are reviewed in each financial year end and changes, if any, are accounted for prospectively. (vi) Intangible assets Intangible Assets are stated at cost less accumulated amortization and impairment loss, if any. - Cost of Software is recognised as Intangible Assets and is amortized on Straight Line method over a period of legal right to use or three years, whichever is earlier. Other intangible Assets are amortized on Straight Line Method over the period of legal right to use. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the company. (vii) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign currency forward contracts, cross currency interest rate swaps, interest rate swaps and currency options; and embedded derivatives in the host contract. Financial Assets Initial recognition and measurement All financial assets are recognised initially at fair valuc plus, in the case of ass trecorded at fair value through :profit or loss, transaction costs that financial asset. D A Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 Classification and subsequent measurement Classifications The company classifies its financial assets as subsequently measured at either amortised cost or fair value depending on the company's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Business model assessment The company makes an assessment of the objective of a business model in which an asset is held at a portfolio level because this best reflects the way the business is managed and infoi7nation is provided to management. Debt instruments at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met: a) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows. b) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. After initial measurement, such financial assets are subsequently measured at amortdsed cost using the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortisation.is included as finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. Debt instrument at fair value through Other Comprehensive Income (FVOCI) Debt instruments with contractual cash flow characteristics that are solely payments of principal and interest and held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets are classified to be measured at FVOCI. Debt instrument at fair value through profit and loss (FVTPL) Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as at FVTPL. I addition, the company may dect to classify a debt instrument, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch'). Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss. Equity Instruments All equity instruments in scope of mId AS 109 are measured at fair value. On initial recognition an. equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in OCI. This election is made on an investment-by-investment basis. All other Financial Instruments are classified as measured at FVTPL. Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 Derecognition Of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the company's balance sheet) when: - The rights to receive cash flows from the asset have expired, or - The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in ful without material delay to a third party under a '-pass-through' arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognize the transferred asset to the extent of the company's continuing involvement. In that case, the company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the company could be required to repay. On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cixmulative gain or loss that had been recognised in OCI is recognised in profit or loss. Impairment of financial assets The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade receivables Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, amortised cost, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of directly attributable transaction costs. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial Liabilities measured at amortised cost After initial recognition, interest-bearing loans and borrowingsy measued amortised cost using the effective interest rate method. Gains and es are r sed inprofit or loss when the liabilities are derecognised as well as through th amorti process. Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 Amortised Cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective rate interest amortisation is included as finance costs in the statement of profit and loss. Financial liabilities at fair value through prof i cud orania losstishldfrtrdn Financial liabilities at fair value through profit or loss nld iaca iblte edfrWdn and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains! loss are not subsequently transferred to P&L. However, the group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. Derecognitioni of financial liabilities The company derecogniseS a financial liability when its contractual obligations are discharged or cancelled, or expire. Modifications of financial assets and financial liabilities Financial assets if the terms of a financial asset are modified, the company evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at pfair value. if the cash flows of the modified asset carried at amortised cost are not substantially different, then the modification does not result in derecognition of the financial asset. In this case, the company recalculates the gross carrying amount of the financial asset and recognises the amount arising from adjusting the gross carrying amount as a modification gain "or loss'in profit or loss. If such a modification is carried out because of financial difficulties of the borrower, then the gain or loss is presented together with impairment losses. In other cases, it is presented as interest income. Financial liabilities The company derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and. the new financial liability with modified terms is recognised in profit or loss. (viii) Revenue/ Other income a) Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, taxes and amounts collected on behalf of third parties. The Company recognises evamount of rdvenue *can be reliably measured, it is probable that future economic b I l the entity. Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 b) Interest income is recognized using the Effective Interest Rate ('EIR') methpd. The EIR is the rate that exactly discounts the estimated future cash receipts through the expected life of the financial instrument or a shorter period, where appropriate to the net carrying amo7dnt of the financial asset. The SIR is computed basis the expected cash flows by considering all the contractual terms of the financial instrument. The calculation includes all fees, transaction costs, and all other premiums or discounts paid or received between parties to the contract that are an integral part of the effective interest rate. c) Other items of Income are accounted for as and when the right to receive is established. d) Service Charges Income is recognized as per the terms of the contracts (ix) Fqreign currency translation Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss. Foreign exchange differences regarded as an adjustment to borrowing costs, in terms of Para 6(e) of Ind AS-23, are presented in the statement of profit and loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within other gains! (losses). (x) Employee benefits i. Short term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or, constructive obligation to pay - this am ount as a result of past service provided by the employee and the obligation can be estimated reliably. Provision/liabilities towards Foreign Service Contribution are made in terms of Government Rules f Regulations for employees on deputation and charged to development account. Ii. Defined contribution plans Obligations for contributions to defined contribution plans are expensed as the related service is provided. The company has following defined contribution plans: a) Provident Fund iii. Defined benefit plans The company net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by a quali using the projected unit credit method. When the calculation results in a potential ass y, t1q recognised asset is limited to the present value of economic benefits available o future Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into accoint any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs. The company has following defined benefit plans: a) Gratuity iv. Other long-term employee benefits The Company's net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Re-measurements are recognised in profit or loss in the period in which they arise. The company has following long term employment benefit plans: a) Earned leave b) Half pay leave c) Leave travel concession Termination benefits Expenses on ex-gratia payments & notice pay under voluntary retirement scheme are charged to revenue at the earlier of the following dates: a) When the Company can no longer withdraw the offer of those benefits; and b) When the Company recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of termination benefits. (xi) Borrowing Costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset -are capitalised during the period of time'that is required to complete and prepare the asset:for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are incurred. ' Ai Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 (xii) Taxation Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or in Other Comprehensive Income Current tax Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if, the Company: a) Has a legally enforceable right to set off the recognised amounts; and b) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assqts and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit nor loss. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves. Unrecognized deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is dieasured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if: a) The entity has a legally enforceable right to set off current tax assets agaiist current tax liabilities; and b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity. (xiii) Provisions, Contingent Liabilities and.Contingent Assets Provisions are recognised when the Company has a present legal or constructive obligation as a result. of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settldment is determined by considering the class of obligations as a whole. A provision is recognised even ifthe likelihood of an outflow with respect to any one item included in the s of obligations may be small. Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current mmarket assessments of the time value of money and the nsks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. A disclosure for Contingent Liability is made when there is a possible obligation ora present obligation that may, but probably will not, require an oufo ofrsucs hnteei &ible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. The provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. Where an inflow of economic benefits is probable, an entity shall disclose a brief description of the nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect. (xiv) Impairment of non-financial assets At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication on impairment. If any such indication exists, then'the asset's recoverable amount is estimated. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGIIs. The recoverable amount of an asset or CGU is the greater of its value in use and itufair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to-thei present value using a pre-tax discount ratq that reflects current market assessments of the time value of money and the risks specific to the asset ot CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment loss in respect of assets other than goodwill is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (xv) Leases Determining whether an arrangement contains lease At inception of an arrangement, the Company determines whether the arrangement is or contains a lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. A lease is classified at the inception date as a finance lease or an operating lease. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessors axe classified as operating lease. Lease payments for assets taken on operating leases are recognized as an expense in the Profit and Loss Account over the lease term on a straight line basis exc e increment in lease rentals is in line with general rate of inflation. A C Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2011 (xvi) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand and short-term money market deposits with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (xvii) Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief, operating decision maker. The Board of Directors of the Company have been identified as being the chief operating decision maker by the Management of the company. Refer note 33 for segment information presented. (xviii) Miscellaneous a) Liquidation damages are recognised at the time of actual recovery. b) Insurance claims are accounted for based on Management best assessment of the quantum of loss & coverage thereof in terms of Insurance policy. Any shortfall excess are adjusted on the settlement of claims. Claim towards loss of CWIP, for which Insurance are obtained by Contractors under the provisions of respectve contract agreement, are not accounted in the books of the company. c) Liabilities for goods in transit/ Capital works executed but not certified are not provided for, pending inspection and acceptance by the corporation. d) Claims including price variation are accounted for on acceptance. XtACr- 一：·、价｛一＿＿二 __―一―------------―一一 -Dedicated Freight Corridor Corporation Of India I.Aralted Notes to the financial stateme ta for the year ended 31 March 2017 (All amounts are in Rupees lacs, u"Iess otherwise stated) 4. Capital work-lu- progress As at Additions Capitalized Deletionst As ad Particulars I April 2015 during the year durinz the year adjustments 31 Mumb 2016 during the ear Earthwork 25,780.66 2,793.59 28,574.25 Bridges Under Progress 141,906.83 32,632.62 939.44 173,700-01 Tracks 38,03133 168,024.12 1,136.26 204,919.39 Other Project Expenditum 55,683.60 20,642.67 652.87 75,673.40 Formation 170.72 17.67 12.50 175,99 Overhead Eloctrio Equipment 81.11 2,131,06 2,212.17 Compensatory Afforestation Expenses Z185.69 8,-298.27 37.79 io,446.17 Material Issued to Contractors 10,396.39 165.46 '10,561.95 Expenditure During Construction Period 47,397.50 25,096.14 72,493.64 Total (A) 321 259,801.60 40.71 568,194.92 Tangible assets under develo pruent Leasehold Improvements Under Progress 8.19 88,59 96.79 0.00 office Equipments under Installation 10.81 - 10.81 0.00 Total (B) 19.01 88.59 107.59 Total (A+H) 32 653.03 259 990.19 107S9 13,2 .92 As at Additions Capitalized Wetions/ A$ at Particulars adjustments 31 March 2017 31 Mwvh 2016 during the year duringtheyear durftthe year Earthwork '28,574.25 1,349.04 29,923.29 Bridges Under Progress 173,700.01 30,607.28 489.89 203,817.40 Tracks 204,919.39 221,760.81 2,015.65 424,66455 Other Project Expenditurr. 75,673.40 33,745.98 1,432.54 107,986.84 Formation 175.89 886.07 $4.06 977.90 Overhead Electric Equipment 2,212.17 889.65 3,101.82 Compensatory Afforestation Expenses 10,446.17 67.84 10,514.01 Material Issued to Contractors - Expenditure. During construction Period 72,493.64 32,684.53 105,178.17 Total (A) 321,99laO 22.14 896,163.98 .568,194.92 ------ Tangible assets under development Leasehold improvements Under Progress 0.00 6.52 6.52 0.00 Total (B) 0.00 6.52 6,52 - 0.00 8,194.92 321,997.72 6.52 4,022.14 886163.98 Total (A+B) - _J7 D ACC a sN ml > 04 1T il la M5 tn cn Cprn~f ~ u -g fl g vii .- isi ~4151 Dedicated Freight Corridor Corporation of India Amtted Notes to the financial statements for the year ended 31 March 2017 (All amounts are in Rupees lac unless otherwise staleaP As at As at As at 31 March 2017 31 March 2016 1 April 2015 7. Other non-current financial assets Security deposits - Electricity 33.13 32.95 32.60 * Lease rent 10432 86.1 7558 - Against telephone and others 1.57 1.52 1.36 - Against cutting of trees 53.48 455.49 36.08 Fixed deposit accounts pledged as security - 416.34 416.34 Others -Employeedvance 37.48 18.14 29.98 610.62 561.9 6 8 Deferred tax assets (net) Deferred tax assets 2,132.37 776.62 2,13237 776.62 DeferreJ Taxt Income Tax A. Amounts recognised in profit or loss For the year For the year aided ended 31 March 2017 31 March 2016 Current tax expense Current year 5,576.03 3,408.34 Adjustment for change in estimates for prior period 7 (0.01 SM63 3AGS.33 Deferred tax expense Origination and reversal of temporary differences (1,346.52) (774.08) (1 46.2 g 74.08a) Total T Expense 4,229.51 2,634.25 a Amounts recognised In Other Comprehensive Income For he yar ededFor the year ended For the year ended 31 ~rch 2016 31 March 2017 Before tax Tax ( nxPes)/ Net of ts Before tax Tax xse)l Net or tax oeIncome Icm Remeasurements of (26.66) 9.23 (17.43) (7,35) 2.54 (4.91) defined b(nef(t liability26 9.23 17.43) (4,81) C. Reconciliation of effective tax rate For the year ended For the year ended 31 March 2017 31 March 2016 Rate Amount Rate Amount Profit before tax from continuing operations 41092565 3,0.11 Tax using the Company a domestic taxrate 34.600 4,092.69 34. 2590.0 Tax offect of am ounts which are not deductible (taxable) in calculating taxable income Corporate social responsibility expense 0,57870% 68.44 0.7763% (.14 Deemed deduction of expenditure on income 0.0006% 4 -05030% 365) income/ expens0s capitalised since the C2mpany is pre erative3.67 stage Non-deductible expenses 0.1676% 19.82 0.0001% 1 Changes in estimates related to prior years 0.0000% - -0.0001% (0.01) 935.19 2,64.2 &,D AC60 Dedicated Freight Corridor Corporation of India imited, Notes to the financial strtementsfo the year ended 31 March 2017 (Aa amounts are in Rupees laWs, unless odwrwise As at AA at As at 31 March 2017 S March 2016 1 April 201S D. Movement in deferred tax balance As at Recognized In RecognIze In As 0t 31 March P&L OCI 31 Mrch 2017 2016 Deferred Tax Assets 77662 1,355.75 2i32.37 Property, plant and equipment including capital 7 13231 worke in progrss 1257 Deferred Tax Liabilities 9.23 .23 Employee benefit expense 9.23 (9.23) 2 1 46.2 923 2,132-37 Net deferred tax asset (b)(a) As at Recognized in Recognize4 in As at IApril 2015 P&L OCI 3lMarcbZOI6 77662 * 776,62 Deferred Tax Assets 776.62* Deferred Tax IabilitIes Employee benefit expense 2.54 (2.54 Net Deferred Tax iUability (b)-a) . =d deferred tax liabilis ad deferred tax assets as on 31 March 2017, 31 March 2016 and 1 April2015. FIrter. the Company does not have any tax losses to be carried forward. 9 Other non-current assets Wabpisation Advance 334,567.90 157,020.70 102,704.14 ,CapitlisatnAdanc (Secured against hypothecation of plant and machinerY in favour ofDFCCIL Rs. 2,346.27 as at 31 Mar327 (Ast3l March 2016 Rs, 3,080.79, 1 April 2015 Rs. 3,734.84) 271,239A8' 228,583.39 179,047O - Advance for Shifting of Utilities 40,209.82 36,152.2 1,7. - Advance for ROB/RUB 2,822.07 27,190.7 640 Advance for Capital Works- Others 2,80588 15. 86.44 Interest acened on mobiiztOn advances & others 319.94 287.83 265.43 -Other deposits including interest 3,005.82 2,543.84 . 364.03 681,571.25 453,367.19 286,921.13 10 Cash and cash equivalents Balance with banks: 94.599.73 14,796,72 In Current account and flexi 50,608.26 144,893.71 66,385.39 in deposit accounts wit initial matrity of 3 months or ls (600.6) (193.71) (385.39) Less: Interest accred on fixed deposit preetdaohrfinclasts01 .9216 Cheque in hand 01 10 19 144,600.88- 157,507.81 7,857 &ASk A Dedicated Freight Corridor Corporation of India Limited Notes to the financial statements for the year ended 31 March 2017 (All amounts are in Rupees las, unless otherwise stated) As at As at . Aat 31 March 2017 31 March 2016 1 April 2015 Noteqr b.0- 308(E) dated 30 March 2017. the details ofthe Specified BankNOtes CSBN') held and A,s requie ov tC il8A ubr o I)cember 2016 as provided in the table belowv: - n'~~tansacted during toe period 8 November 2016 to 30 eebr21 spoie nt al eo SBNs Other Denomination Notes Total Closing cash in hand as on 8 November 2016 (+) permitted receipts (-) Permitted payments (-) Amount deposited in banks Closing cash in hand as on 30 December 2016 II Other bank balance 216,61524 In deposit accounts 1,652 (1,615.24) Interest doi d deposit presented as other financial assets 2,683.12 3,82.70 Earmarked balances with banks 416 34 23 Fixed deposit accounts pledged as security 16.34 12 Other current financial assets Interest accrued on fixed deposit ,22.50 2,09.71 35.39 Expenditure on land acquisition - recoverable from MOR 679,81 1,355.30 974.47 Expenditure on PETS survey - recoverable from MOR3 Other recoverable 3.66 1.97 22861 Security deposit- NDMC 9.98 9.98 10.33 Employee advances 32.34 12.3 516 Recoverable from contractors/ consultants 506 1.3 5.10 Recoverable from staff. 3.7 3.3 6,81,35.3802 1977.85 'a)As er he iretios o Mnisry f Rilwys MOP),Land for the project shall be acquired in the name Of MOP. under The Railways )A 1989 asmodifid s by iisr TheRRai ways ( MdlORt) At 08adeLn so acquired hanl be leased to toe Company at leae rent of 6% per annumn Of the Cost of Land on the date Of banding Over to DFCCIL. b) eas ret sallcometle fom he ateof o isioull. Funds for acquisition of land are being provided by MOP. tO separate bank Recverbl from staffmmsinng 1fth bv Atada oiae accwt, eig peate n t Acont do not form par Ofthe Company's Accounts' 13 Current tax assets (net) 440.50 Advance tax net of provision for income tax of Rs5,576.3 1,538 52 (previous year as at 31 March 2016 Rs.3,408.35, and as at 1 Aprl 2015 Ks. 1,914.2) 14 Other current assets 588.92 193.74 165.70 prepaid expenses onrtnio1oe 9s.36 91.26 113,15 Interest accrued but not due on retention money 8.29895 Service tax input credit and advance paid 54.29 113.1 Other loans and advances 2.02 5.70 2.9 Gold silver medallion for employces in hand 2.02 0.24 1.69 543,9 ~ ~ *94 10.4 I!A , DedIcated Frelght CorridOr Corporation of Indls Im,Ited Notes to financial statetents for the year ended 31 March 2017 (All amounts are in Rupees laCs, unless ohor-wise saied) As at As at As at 31 March 2017 31 March2016 1 Apri 2015 15 Share capital Authorlsedt 80,000,000 (As at 31 March 2016 - 80,000,000 and 1 April 2015- SW,000.00 6.00000 800,000.00 80,000,000) equity shares of Rsa 1,000/- each Issued, subscribed A fully paid up: 76,582,729 as at 31 March 2017 48,026,688 as at 31 March 2016 765,827.29 480,266,88 371,5668 and 37,156,688 as at I April 2015 equity shares of R.1,0001- each 76582.29 480266.88 371,5i6.88 a. Rights. Preferences & Restrictions attached to Equity Shares The Company has only one class of shares referred to as equity shares each having a par value of R . 1 r- per sh . TUey entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of mnd amounts pai on the shares held. Every bolder of equity shar present at ameetigin person or byproxy is entitled to one vote, and upon a poll each share is entitled to one vote. b. Reconciliation of number of shares outstanding at the beginning and end of the year: Number of Amount Shares Outstanding at the I April 2015 1,56,68 371,566.88 Equity Shares issued during the year in consideration for cash 10,870,000 108700.00 Outstanding at the 31 March 2016 48,026,61 48(126.38 Equity Shares issued during the year in consideration for cash 28556041 285,560.41 Outstanding at the 31 March 2017 c. Shareholders holding more than 5% shares In the company As at 3 Match 2017 As at 31 March 2016 As at 1Apr12015 No. of Shares PercentaAe No. of Shares Percentage No. of Share Percentae The President of India & his nonines (Ministry 76,582,729 1000 48,02668 10.00% 37,156,688 100% of Railways) 16 Other equity Mat ASst 31March2017 31.March2016 a. Share Application Money Pending Allotment2 1 Balance at the beginning of the year 2852560.41 108.700.00 Add: Share application money received from Ministry of Railways 28,560.410, Less: Shares issued during to Ministry of Railways (8M,56041) (108,700.41 Balance at the end of the year 285,560.41 1. Company had opening balance of Rs. 1,08,700.00 of Share Application Money received from Ministry of Railways as on I April 2015. Company has issued Equity stares at par in respect of this, outstanding share application money on 08 May 2015. . Company has closing balance of Ra. 2,85,560a41 of Share Application Money received from Ministry of Railways as on 31 March 2016 2,85,56,041 number of equity shares are issued at par for said outstanding application money during year ended 31 March 2017. b. Retained earnings Balance at the beginning of the year 5,860.46 11,010-62 Add: Profit for the year after taxation as per statement of Profit and Loss is 8A0.4 ~3,*54,80 15,860.46 c. Remeasuramenut of defned benent plans Balance at the beginning of the year (481) Addition during the year (17.43) (4.81) Balance at the end of the year R.emseasuremleflt of defined benefit plans Remeasurements of defed benefit plans represents the following as per Ind AS 19, Employee Benefits: (a) actuarial gains and losses (i) the retr on plan assets, excluding amounts included in not interest on the not defined benefit liability (asset); and S (c) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset) t ~4~(W Aj Dedlcatcd Freight Corridor CorporaLLOD of India Limited Na to financIal statment for the year ended 31 March 207 (Al amns aen }|i p ee . Um1ss obenalse smO MtAs at Al a& 31 March 2017 31 March 2016 1 April 205 17 Borrowng Tem ilA ( rc 493,644.17 .292,227.42 98,591.97 JICA 237,336.11 _ 40,361,26 52,828,49 - IBRD 730,980.8 3428.68 151,20.46 -Total (35,133.3Q) (15,269.99) (7,305.61) Le: accrued intarelt on RCA oa (Rfer nota 18) <1,3009) (419-36) (12642) Lgas: acmad intsret 0n IBRD loan (Refer note 21) 64559 694,545.99 326,899.33 143,98.43 . Tenn of repayment and intert re s follow: Carrylog Amoun RepaymentTcrmå Year of Matå r1ty Rate of Interest As at st Atal LORK From p.e* 31 March 2017 31 Mrch 2016 1 AprIl2015 F7%-Fixd 16,138.99 15,002.15 131194 MOR for EAPPrOj_tJSiCEA- 205 Refer Note A 2050 7% -Fiued 38t^33 175,198.55 77,66t.24 MoR for EAPProj~t5 CA 2o9 Rfer Not A 2050 %-wd, ,745.99 8,142.52 7,118.79 MoR for EAP Projets ICA - 212 Refr Noto A 2053 7%- d 67,540 3,884.20 - MOR for EAPMPocta JCA - 229 Refer Not A050 7%-H2td 14,341.29 - MoR for EAP Projeets J:CA - 209 A Refer Note A 2053 7% - Fixed 4,970.88 - . MoR for EAP projctg jCA - 229 A Refk Nate A 2»in30:ztålmetw t.77%-Viabg 157,007.23 118,320.06 52,671.90 MOR for EAP/IBRD Pe - HlfYearly 6148.84 22,041,20 156.59 IBRD) for EAP Projectg-83 18 al yd å i3 ~ m 1.7-*läc 1eBRD for EAP Prje-t8513 HalfYoaly 2037 in 30 in,4 97%.V0ablo 13, .03 (36,434.29) (15,689.35) (7,432.03) 694,545.99 326,89-33 143 98.43 IanbyIIC i blaggia o Mniayof Råliway, am 13,~iil Aided ~Pom fl Of Grot Bud~e Support (OBS) Io~l M~ner of Fimoo-B This it pasaed on to Loan for DFCCIL on beck to backbis. As per in~eet acormed dueiult to MRi of mo2ra~1 1 b, tonure of loen i 40 m o ate ofinteret is 7% and moraoim piod iu a pabeaftet comPlcå*ft Of 10 YotP. TItta iu~ wiln sa on simple m~trn ba. EAP/ Inmerdojål Bank for Reconstruetia and Development CrIBRY) L72t The Government of India ( OD through the Mini~i of F 0i h tendo a Lota Agrona daud 27 Deomhet 201t to avil an aD n f USD 975 Million with Loa 140 N with te IBRD ihich thal be uåUzad tow~ Idtt DFe nt Cti or X i-Dr( COnWIU ann Comntioning of 343 Kat of double tack eleonifb tay on the KhofaBut aton Ofthe athn Dd t F~ tnort (EO. la teyin of dwa bot Armeuiat DPCCIL, has been idamåftd, 1s the Pro$et implunant Entity for impalittto# oftac projeeot Fu~rt io~hll the oaryil out of the progect bY D FCCIL, 0 a t g~en MOR ii d enå qne t mke t@PrOeda oft ta Lablw to DPCCIL by way of MOR Loan und a Subeidisy 1,0a AOMfefit yoDfCC he 001 thronsh MOR ad DFCCI. unde tema and conditios mlåfa~ to the Bank The repayment of IBRD Loa ID-8066 IN along with internd will be made by DFCCIL to MOR in Rupec equivalent ofthe USD Loan/nteeat amnto The DFICCIL hat entered into another Loan Agnaenet with the IBRD datedt 1 Deomber 2014 to avel a lta ofUS1 1100 Milion with bota I-8318 IN. This bown shall be u~iie towanis Indtiiitl Devoloplnunt A~äV2 mud D~spi Conaunoiot and Comnmisioning# of 393 Kons of do~bb track sec~uie rålway ca the Könpur-Mu~ Sami s o of th EDFC. In thi W amwt the Govenunwt of India (001) has givn Soveign Oaante and chea guaranter fae which has been included in note 26, The DFCCIL hau ond into another Loan Agrment with the IBRD dated 21 Octobor 2016 to avia aloen of USD 650 Million with bota ID-8513 IN. This boan cat be utilized towards Imtiltationiel Dovwtopmui ma cÉtvities and D~tga Conarton and COMndttwtig of 401 ma of doubig tack eteotified Ly on the, Ludäxa - Khmja secion. ofta ihe9 C. In tiå agr~meat the Govaemont ofindia (GO) hat givan Soverin Gu a and oar guarantec feet which bu been inolnded in nota 26. 18 Other no-crren t finandat äslitdeas 15,053.1 4 12,863.97 6,893,46 Depouits/ Retention money (received from supplier & *ervice prov~ ) 35,133,30 15,26999 7,305.61 ~ ternt accrued hut not de on boen from MoR on EAP/ICA 50,18 44 2 133.96 14199.07 19 Long-term provtsluns Provision for employce banty e rlatitY 457A1O 302,92 205,20 -Lave encahmot 865.11 600.96 263.36 - Leave tnvel contåon 134,56 12799 89.04 1456.77 1,03187 557.60 AC Dedicated Freight Corridor Corporation of India Limited Notes to financial statements for the year ended 31 March 2017 (All amounts are in Rupees toes, unless otherwise state) 20 Other non-current liabilities 25,938.00- Advance for ROB/ RUB 211.07 187.59 189.90 income received in advance 5,561.52 5,561.52 5,56153 Advance received from customers against deposit work 531.75 183.75 5 Other advances received 32,242.34 5,932.86 5,75I43 21 Other current financial liabilities 222.44 216.75 138.24 Eamnest money deposit &-evc poies 3,517.04 2,576.54 1,03,77 Deposits/ retention money (received frim supplier & service providers) 3,7.04 376.54 1,71304 Others payables 48,799.56 37,911.19 31,718.04 Funds received from MOR pending adjustment 311,045.55 2,793.10 Interest accrued but not due on loan from IBRD 1,300.99 41936 126,42 364,885,58 41,123.84 35,809.57 22 Other current liabilities Advance for land (Pending for transfer to SLAO A/c) 3,389A4 2,683.12 3,382.70 Advance received from customers against deposit work 6.48 6.48 6.48 Duties and taxes payable 7,298.31 4,373.45 2,054.1 Income received in advance 5.56 5.55 5 -55 Other advances reccived 205.00 10,699.76 7,273.63 5,448.91 23 Short-term provisions Provision for employee benefits (Refer note 36) - Gratuity 28.30 21.21 8.19 - Leave encashment 82.37 56.01 23.52 - Leave travel concession 30.66 5.41 3.08 14133 82.63 34.85 24 Current tax liabilities Provision for income tax net of advance tax of NIL as at 31 March 2017, (previous 114.07 1.84 year Rs.3,294.26 as at 31 March 2016 and Rs.1,912.41 as at ] April 2015). - 114.07 1.84 rDA 0 Dedicated Freight Corridor Corporation of India Limited Notes to rinancia1 statements for the year ended 31 March 2017 (AU amounts are in Rupees lacs. unless otherwise stated) For the year ended For the year ended 31 March 2017 31 March 2016 25. Other Income Interest income on financial assets measured at amortised cost1 - on Flexi FDR 14.5508 9,86917 Foreign currency fluctuation gain/ (loss) 1776 Other interest income 569.46 Recruitment fees received 186.28 Miscellaneous income 253 686 Application money received '2.3200 . 2 Rent recovery on sub-lease 28143 274.24 Housekeeping expenses recovered from sub-lessee 1,91 20.01 Office Security expenses recovered from sub-lessee 25.83 25.57 Electricity expenses recovered from sub-lessee 1 6503 Annual maintenance charges recovered from sub-lessee 18.29 6,03 Other charges recoverable 39 Composite rent and facility management charges 317,48 10236.17 Total 15,849.87 78 Direct expenses Housekeeping expenses 12.36 13.73 Rent 282.43 274.24 Composite rent& faoilitymanagem txpnse 225.65 162,47 Office repair and maintenance 1124 1 Office security expenses 19.48 17.78 Electricity expenses office 2196 22.73 Annual maintenance charges 1625 5,36 Total direct expenseS 58037 496.31 Other Income 15,269.50 0143.47 Less: Transferred to development account (net of tax impact) 131.40 . 61.05 Net other Income 15,18.1 10,082.42 26. Employee benefits eXpense Salaries and wages 9,836.18 7,814.01 Leave salary & pension contribution 1,019.65 319.75 Contribution to provident and other funds 487.64 41603 Staff welfare expenses 431.15 476.34 11,774.62 9,020.18 Less Transferred to development account (refer note 31) 11,774.62 9,020.18 27. Finance cost Interest Expenses on: EAPIJICA loan 18,880.69 7,964.38 IBRD loan 5663.29 872.38 Interest on Incom e Tax 57.27 Guarantee fee 1,266694 Other finance cost 1,689,.69 669.71 Exchange differences regarded as adjustment to interest cost (6,231.63) 4,884403 17,059.31 14,65144 Less: Transferred to development account (refer note 31) 17,002.04 14,657.44 57.27 - Note: The capitalisation rate used to determine the amount of the borrowing coals to be capitalised is the weighted average interest rate appficable, to the entity borrowings during the year. iri this. case 7% (previous year"P/o) for Woans ~ frow nc1 WW 1. p4Pviou year 1 05%) for loans fram IBRD DA e0 Dedicated Freight Corridor Corporation of India Imited Notes to financial statements for the year ended 31 March 2017 (All amounts are in Rupees Ides, unless otherwise slated) For the year ended Vor the year ended 31 March 2017 31 March 2016 28. Depreciation & Amortization Expenses Depreciation - EDP assets '261.39 217.35 Depreciation - Office equipment 6283 49.71 Depreciation - Frniture and fixture 77.51 55.68 Depreciation - Leasehold improvement 71.36 82.82 Depreciation - Leasehold flat 10.67 6.82 Depreciation - Plant and machinery 0.29 0.28 484,05 412.66 Less: Transferred to development account (Refer note 31) 22880 201.56 255.25-- 211.10 Z9. Other expenses Rent expense (Refer note 34) * 1,647.95 1,590.38 Tours travels and conveyance 84492 2180.96 Cost of outsourced staff (placement) 581.74 416.32 Seminar and training expenses 371.50 380.81 Advertisement expenses 379.88 341.18 Housekeeping expenses 372.4 321.26 Office security expenses 199.52 215.08 Legal and professional charges 154.16 15863 Corporate social responsibility 197.76 167.98 Communication expenses 137.77 105.79 Printing and stationary 156.59 135.89 Consultancy fees to consultants 446.91 141.96 Recruitment expenses 125.68 110 Electricity expenses 125.68 117.89 Repair and maintenance - others 113.12 118.61 Rates and taxes 286.88 112.03 Foundation day expense 26.88 25.19 Computer job work 44.99 18.95 Payment to statutory auditors * 15.07 16.73 Meeting and conference 63.24 54.77 Office expenses 49.33 41.71 Hospitality expenses 369 32.59 Miscellaneous expenses 173.69 32.S9 8,441.91 6,713.49 Less; Transferred to development account (Refer note 31) 5,442.18 4,326.28 Total2,999.73 2,387.21 * Payment to Statutory Auditors includes: Statutory audit fee 9.70 9.78 Tax audit fee 2.25 2.27 Reimbursement of expenses (paid during the period) 1.02 Provision towards out of pocket expenses in connection with audit of 1.41 FY 2015-16 Other audit fees (EDFC-I audit) 1.97 1.96 Other audit fees (EDFC-II audit) 1,15 0.29 15.07 16.73 *Note. As per the directions of Mintistry of Railways (MOR), Land for the project shall be acquired in the name of MOR under The Railways Act, 1989 as modified by The Railways (Amendment.) Act, 2008 and the Land so acquired shaUl be leased to the Company at lease rent of 6%/ per annum of the Cost of Land on the date of handing over to DFCCIL. Lease rent shall commence from the date of commissioning. The lease rent on above mentioned land so handed over to DFCCIL has not been strai or the rent free construction period, as it is impracticable to determine the impact of the same Z IPA, Dedicated Freight Corridor Corporation of India Limited Notes to financil statements for the year ended 31 March 2017 (All amounts are in Rupees lac unless oAerwise state) For the year ended For the year ended 31 March 2017 31 March 2016 30. Earning per share Basic earning per share 7,596.34 4,849-34 Total profit/ (loss) for the year Weighted average number of equity shares of Rs. 1,000/- each (In 765. 469.28 lass) 9.92 i* 1033 BPS - Basic Diluted earning per share 7,59634 4,849.84 Total profit! (loss) for the year 48.04 Weighted average number of equity shares of Rs. 1,000/- each (In lacs) - 765.83 481.05 Diluted 9.92 10.08 EPS - Diluted 31. Development account (pending capitallsation) 11,774.62. 9,020.18 Employees benefit expense 17002. 1,657,44 Finace ost17,002.04 14,657.44 Finance cost 228.80 201.56 Depreciation and amortization expense 5.442.18 4326.28 Other expenses Total (A) 34,447.64 28,205.46 Less: 270-06 1,918.30 Liquidated damages (LDA) 1,298.57 1,385,50 Interest on mobilization advance 32.11 22.40 Interest on advance consumption deposit 3 2.42 0.93 Interest on advances - employees . 0.72 Cash discount from contractors (326.52) Foreign currency fluctuation gain/ (loss) 5.44 5.85 D&G, supervision & plant estimation charges received 1.39 Security deposit/EMD forfeited 30-08 40.40 Sale of tender (8.36) 0.69 Profit on sale of property, plant and equipment 1,631.71 3,048.27 Total (B) 32,815,93 25,157.19 Net expenditure (A-B) -131.40 6L-05 Income transferred from other income 1 Total transferred to capital work In progress (CWIP) 32.684. 25,09.14 S4JA di Dedicated Freight Corridor Corporation of India Liited Notes to finaicIal statements for the year ended 31 March 2017 (ll amounts are in Rupees lao, wew odhrwise stted) 32. Contingent liabilities, contingent assets and commitments A. Commitments a. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 39,89,915.40 as at 31 Mar 2017, Rz. 24,70,940.11 as at 31 March 2016 and Rs 10,00,720,72 as at 31 March 2015. B. Contingent Liabilities As at As at As at 31 March 2017 31 March 2016 1 April 2015 Claims against the Company not acknowledged as debts in respect 34,994.92 34,805.54 31,796.38 of Capital Works Disputed Taxation Demands 502.65 119.08 705.87 35,49757 34,924.62 32.502.25 b. The above Contingent Liabilities do not include Contingent Liabilities on account of pending cases in respect of service mattes & others where the amount cannot be quantified c. It is not practicable to disclose the uncertaintis relating to any outflow d. A number of cases are lying for adjudication at different forums pertaining to land compensation. Since land acquisition is bang done by the cmpyty as a faci litator for Ministry of Railways, company is not subject to any liability that may aise pursuant to the decision of aforesaid adjudicating authoritiea C. Contingent Assets Company has no contingent assets as at 31 March2017, 31 March 2016 iand I April 2015 33. Segment Information A. Description of segments and principal activities Segment information is presented in respect of the company's key operating segments. The operating segments are based on the company's maagement and internal reporting structure. Operating Segments The Company's Board of Directors have been identified as the Chief Operating Decision Maker ('CODM') since they are responsible for all major decision w.rt the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, and epansion of any new facility. Accordingly, management has identified Eastern corridor and Western corridor as two operating segments for the Company. B. Information about reportable segments Infornation relted to each reportable segment is set out below. Since the Company is in construction stage, hence profit and loss is not reviewed by the CODM. However, the Segment assets and liabilities ar used to umeasre performance because management believes that this information is the most relevant in evaluating the performance of the respective segments. Total assets Total liabilities Segment assets a Total Assets Segment liabilities corporte iDe otal labilities As at 31 March 2017 EDFC 658,922.42 658,92242 267,726.11 - 267,726.11 WDFC 915,839.53 - 915,839.53 537,842.42 . 537,842.42 Unallocated - 368,658.11 368,658.11 1,137,851.53 1,137,85L53 Total 1,574,761.95 368,658.11 1,943,420.06 205,568.53 1,943,420.06 Asat31March2016 EDFC 480,121.57 - 480,121.57 168,271.26 168,271.26 WDFC 576,202.28 - 576,202.28 230,094.41 230,094.41 Onallocated - 135,951.28 135,951.28 793,909.46 793,909.46 Total 1,056,323.85 135951.28 1,192275.13 398,365.67 793,909.46 1,192,275.13 As at1 April2015 EDFC 297,644.61 - 297,644.61 71,731.49 71,731.49 WDFC 377,654.32 777,6 32 120,8799696 ufi7iocaft8 1,770,27 21,77027 071. 50,069,7 Total67,9.32M1 9, .219.1.5670.0 ct - Dedicated Freight Corridor Corporation of India Limited Notes to financial statements for the year ended 31 March 2017 (All amounu are in Rupslars,-unlss othanisstated) C. Geographic Information The geographic information analyses the Company's revenue and non-current assets by the Company's country of domicile. I preswbng the geograp o infounation, segment revenue has been based on the geographic location of customers and segment assets were based on the geograplic location of the assets. a) Non-current assets As at 31 March 2017 31 March 2016 1 Apr1 2015 India 1,572,525.60 1,024,964.30 610,709.99 Non-current assets excude financial instnhments and employee benefit assets 34. Leases Operating lease The Company's significant leasing arrangements are in respect of operating leases of premises for offices and gueshouses. 7hese leasing arrangements, which are not non-cancellable, are typically for a period of 11 months to 5 yeas and ere usually renewable on mutually agreeable tem. A part of one of the leased properties had been sub-leased by the Company The future minimum sublease payments expected to be received under non- cancellable subleases at the end of the reporting period are - 31 March 2017 - Rs 688.84., 31 March 2016 - Rs. 5993 1. 1 April 2015 - Rs. 274.24. Amounts recognised In profit and loss Note No. For the year ended 31 March 2017 31 March 2016 Rent aqpense 29 1,647.95 1,590.38 Sub-lease income 24 282.43 274.24 35. Disclosure as required under section 22 of The Micro, small and medium enterprises development act, 2006 is as follows:- Particulars Year ended 31 March 2017 31March 2016 Principal amount remaining unpaid to mi=o, small and medium NIL enterprise Interest accrued on principal anountrarmining unpaid as (i) above NIL NIL Amount of interest paid during the FY along with the payment of principal amount made beyond 15 dys or agreed tims from the date NIL NIL Inest dueobut yet to be paid on pripal paid during the FY NIL NIL Amount of fathar interest remaining due and payable even in the succeeding period, until such date when the interest dues as above are NIL NIL actually paid to the small enterpiser for the purpose of disallowance as deductible expenditure *d Dedicated Freight Corridor Corporation of India Liuited Notes to nanclalstatements for the year ended 31 March 2017 (AIlamoits are in RAees la, unles odrer#vis sW4 36& Employee benefits The Company contribute to the following post-employment defined benefit plano in India. TDefind Cop cntributn utions towards provident flud to a defined contribution retirement benefit plan for qualifying employes. Under the plan, the Company it required to contribute a ipecified percentage of payroll cost to the retirement benefit plan to fund the beafits. For the year ended 31 March 2017 31 March 2016 C rbuion to vof Provident Fund 357.63 306.68 CDfi n y pod for g frmle in India as per the PayDdent of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 yewM are eligible for gratuity. h amount of gratuity payable on nois the employees last drawn basic salary per month computed proportionately for 15 day salary multiplied for the number of years of service. The gratuity plan is an unfunded plan, The most recent actuarial valuation of plan easts and the present value of the defined, benefit obligation for gratuity were carried out as at 31 March 2011. The present vahie ofthe definied benefit obligations and the related current service Ost and Past service cost, were measured using the Projected Unit Credit Mettod- A. Based on the actuarial valuation obtained in this respect, the following table sets out the statns of the gratuityplan and the amounts recognised in the Company financial statements as, at balance sheet dat: 31 March 2017 31 March 2016 1 April2015 Net defined banent liability 481 41 324.13 21338 Liability for Gratuity 324.13 2133 Total employee benefit liabilities 485.41 31.13 2.19 Non-cuent 457.10 302.92 205.19 Current 2831 21.21 8.19 B. Movem eat in net degfined ben efit, (asset) liability The following table shows a reconciliation from the opening balances to the closing balance# for net defined benefit (asset) liability and its fomPonent1 Definped benefit obligatiln 31 March 2017 31 March 2016 Balance as at 1 Apri 324.13 213.38 Included in Brefit or loss current service cost . Past service credit Interest coat (income) 24.31 17.07 134.61 103.40 1lged il CI Remeasurem nts loam (gain) Actuarial loss (gain) arising from: - experience adjustment 2666 7.35 26.66 7.35 Contributions paid by the employer Benefits paid Balance as at 31 March 485.40 324.13 D. Actuarial assumptions a) Economic assumption The following was the principal acizsal avwmpdons at the reporting date (exprssed as weighted averages). 31 March 2017 31 March 201d 1 April2015 Discount rate 7.50% &6% 8.00% Expected rate of future salary increase 6.00% 6.00% 6.00% b) Demographic assumption _______________________ 31 March 2017 31 March 2016 1 April2015 Retirement age (years) 60 60 60 Mortality rateo inclusive of provision for disability IA rM (2006-0W) Ages Withdrawal Withdrawal Withdrawal Aate (%) Rate (%) Rate (%) 5.00% 5.00% 5.00% From 3lto 44 yearn 5.00% 5.00% 5.00% A bo vm t ye ar 44 t sn $A 0 % 5 0 0 % As ot 31 March 2017, the weighted average duration ofthe defined benefit oblig March 2016 12,29 years and I April 2015 12.96 years) Dedicated Freight Corridor Corporation of India Limnited Notes to financial statements for the year ended 31 March 2017 (Allmowus are in Rwqpes los, mnless rerw1se JA4 I. Sensitivity Raab"al Reasonably possible changes at the reporting date to one of the relevant actuaria assumptions, holding other assumptions constant, would have affected the defined benefit obligation byte amounts shown below. 31 March 20!7 31 March 2016 Increase Decrease Increase Decrease Discount rate (0.5% movement) (18A(9 40.7 (14.25) 15.35 Expected rate of fiture salary increase (0.5% movenent) 2201 (19.30) 15.58 (14-58) Sensitivities due to mortality & withdrawals are not material & hence impact of change not calculated. Sensitivities as to rat of inflation, rate of increase of pensions in payment, rate ofincree ofpeions befre retirement & life expectancy are notapplicable being a lump rum benefit on retirement. Pending approval of superannuation scheme by MOR in terms of Para 2(iii) of DPE OM no 2(70108-DPE (WC)-GL-VlV09 dated 02.04.2009, no provision has been mnade in die accounts towards Pension & Post Supenauution mnedical benefits since there is no obligating event pending approval of MOI (ii Other long-tern employee benefits: a. Earned leave and half pay teae Diring the year ended 31 Mach 2017, the Companyhas incurd an expense on Earned leave and half pay leave amounting to as. 302.40 (Previous year Rs. 254.73). The Company detesmines the expense for Earned leave and half pay leave basis the actuarial valuation of plan assets and the present value of the obligation, using the Projected Unit Credit Method. b. Leave travel concession During the year ended 31 March 2011. the Company has incurred an expense on Leave travel oncession amounting to Rs. 52.20 (Prem4ous year Re. 91.26). The Company determines; the expense for Leave travel concession basis the actuarial valuation. of plan assets, and the present value of the obligaion, umig the Projecte Unit Credit Method. 37. Related parties A. Related parties and their relationships L Government entitles The Companyis a Central Public Sector Undertakng (CPSU) controlled by Central Governmentthroogh Ministry of Railways by holdig a oity of shares (referN ote 14). Pursuant to Paragraph 25*& 26 of Ind AS 24, enities over which the sane governenit has control or joint control ot or significant iafluv e, tien the reporting enlity and other entities shall be regarded as relaotd parv. The Company has applied the exemption available for governmentrlated entities and have made limited disclosures in the financial statemans Such entities with which the Company has significant transactions include but not limited to Ministry of Railways, various divisional I zonal railways under MOR, Ministry of Corporate Affairs, BSNL, IOCL, RailTel, NHAI, POCIL, GAIL and CRWC. IL KeyManagertalPersonnei(KMP) Sh. A.K.Mital Part Time Chairman (Offcial) Sh. Adesh Shana Managing Director Sh. Anshnan Sharma Director (Project Planning) Sh. H.D. Oujrati Director (Operations & Business Development) Sk M.K. Mittal Director - Finance (upto 28th Feb 2017) Sh. Naresh Salecha Director - Finance (w.e.t Ist Mar 2017) Sh. D, S Rv Director (Infrastructure) Sh. iriah Pillar Part time Official Dirietor -Government Nominze-MoR (upto 5th Ot 2016) Sb Ach KPare Part time Official Director - Government Norninee-MoR (wef. 5th Oct 2016) SL. Ravi Mathur Independent Director Snt Shakti Munshi Independent Director Sh. Y.S. Malik PattimeOfcal 4overmentNoiWee-NiAy (wet 30thlune 2016) B. Transactions with the above In the ordinary course of business T or theiyear ended Nature of Transaction 3t March 2017 31 March 2016 Government entities Ministry of railways & its constituent fund Received from MOR 62 5,300O.00 440,0 71.00D Expenditure foT land acquisition 442,159.00 433,200.00 Recoverable for PETS survey from MOR 1,293.25 974.47 Recoverable from MOR towards land facilitation 2,440.18 - expenses for shiffing ofutilities, capital advance, rob Works 262,135.04 66,246.22 nd contruction of Mts (g) Advance received for ROBIRUB 25,938.00 Ministry of Corporate Affairs Stamp duty expen s557 108.70 I ~$OACC'O/ Dedicated Freight Corridor Corporation of India Limited Notes to financial statements for the year ended 31 March 2017 (All amoWtr are in R4mes lacs, 1es oth"erise state1 Other entitles 641.62 BSNL - For shiffing of utilities & Capital works PGCIL - For shifting of utilities & capital works 1,163.30 18,970.26 RailTel corporation Ltd - For shiftg ofutilities & 10137 6.38 capital works NHAI - For shifting ofutilities & capitalworks IOCL - For shing of utilities & capital works 18.80 CRWC New Delhi - For shifting ofutilities & 373.84 capital works 1,900 06 GAIL - For shifting of utilities & capital works Total 1.371,094.29 961,874.73 Remunera lion to Key Managerial Personnel a) short-term employee benefits 237.54 137.46 b) post-employment benefils 5.61 6.10 c) other long-tenn benefits 996 20.95 Total 2531 164.51 Other payments to Key Managerial Personnel Other expenses- legal (sitting fees) 6.67 6.67- Total 66 Outstandin balances with related Parties As at Nature of Transacton 31 March 2017 31 March 2016 Government entitle Recoverable Balances Ministry of railways & Its constituent 67981 1,355.30 Expenditure on PETS survey - recoverable 691 5530 Recoverable fiom MOR towards lend 1,566,57 2,602.93 facilitation expenses 5S 1 Shifing of Utilities, capital advance, ROB 168,743.44 145,534.94 works and construction offls Other cnites BSNL - shifting of utilities & capital works, 64162 ONGC - shifting ofutilities & capital works 10,086.00 10,086.00 POCIL- shifting of utilities & Capital works 31,662.38 30,499.08 RailTel corporation Ltd -shifting ofutilities & 1,596,87 1,613.80 capital works NHAI - shifIing of utilities & capital works 9,636,96 - lOCL - shifting of utilities & capital works 12,506.53 12,506.53 CRWC New Delhi - shifting ofutiliies & 378.84 373.84 cptal works oapital works 1,91 1,91229 GAIL -shifiing ofulitims&OPwok1,2.9,929 RDSO\LKO - shifling ofutilities & capital 0.50 0. works Recoverable from other entities 112,33 24.78 23 9,529.1 4 1 106 549 Pavable Balances Ministry of railways & its constituent Funds received from MORpending adjustmient 31 1,04,5855 Expenditure on land acquisition 3,389.41 2,683.12 Advance received for ROEVRUB 25,938.00 - Total 40,32.96 2 6.83-12 All 1ansactions were made on normal connercial terms and conditions and atmarket rates $OACC0 Dedicatd Freight Coredor Corporation of India Limited Notø to finandal stamenta for the ytar ended 31 March 2017 (Ail amow art i, Rzqeu laR~ kws, dm o li t s1e4 31. Corpoåat#SociIR%poiubIlity a. The Board of Dirctar hau approved a mn of R. 175 (Previout yuar Rs. 135) ta be inøuned for Cporm Soial Rplity (CSR) &drn thO year 2016-7. Duig the ye, compEyh iurred Rø. 197.76 (Prviow year Rs. 167.98) on CSR Activitiei b,. Year ended 31 March 2017 Year ended 31 Mareb 2016 Particulan Paid in as Yet to be Pald in ToW Pd In a hb Y CatobePId T a Comjt~æAcq1Éjjxfo of &nyA"tCsr-. O n Pu cti~ n/ qin n f aeovt 110.22 87 .54 19 7.76 130 42 37.56 16 7.9 8 Tonul 110.22 7.54 than37.56 167,98 TotaCO Dedlcated Freight Corridor Corporation of India L ited Noes to filnandal &tatemanta for thB year ended 31 March 2017 (Allamo~zu an in M~na ku. w,n ohene m1' 39. Finandal instruments- Fairvalues and risk management 1. Fair valge measurementa A. Finandal instrumentis by category Amnrised Cost As at As at As at 31 March 2017 31 Mar£h 2016 1 AnrIlflh1 Finantda] n odmW ~ ffiZIatS 229.98 610.62 561.96 Cah and csh equivaas 144,600.88 157,507.81 79,65.71 Ba aa oth tn above 218,805.75 2,683.12 3,382,70 Otlur curr anmimal aet 4,f75.74 5fi60326 I,977.85 368,51235 166,66181 85,608.22 Finsncdal lablliti" ~ B-Mai;%' 694,545.99 326.899-33 143,988.43 m e crde finanÉW liabilie 50,186.44 28,133.96 14,199.07 m ~e =cwn ~calliabi 364,885.38 41,123.84 35,809.57 1,109.6181 396,557.13 193,997.07 . Fair vale herarby Tlå e= explwu me udgem and etires made in dgt~ning the fi values of te fmncial insm~mat tat arv (a) reoaiaed and mesured et fi valæ and (b) mud at amortised c~st and for which flar vauar dilsed i the fmanoial btD*nta~ , To provide an indi~adon about the ribility f t input usd ~ da nin får ve, Cop a ~ ed its fcW iw taid Imli preaibed under th accounting wsdad. An explnation of ach levet føllows undenathth table. Asses and ]labilit£ whhc are measured at amortised cat for which falr valuts are disrlosed As at 31 March 2017 Leell Level2 Leve3 Total Floati~ asts na « aå~d * . 37.48 37-48 TO iadlu 37.4 37.4 Fltandaliabslies B oa n c a l b ti 6 94,54 5.99 694,545 .99 DB r tnsu .o M y. 1 5,53 .14 15,05 3.14 Total finadallabItics ,709,599.13 Assets and labllties wich ar measured at amortlsed cost for wbch fair valuts arM dhlosed At atM Mareb 2016 Level Level2 LveS Total Flaendal ats Employeeadvnc M14 1814 Total ffiancia lsat 1814 18.14 Fl,ast~a Ibbilltin B on ana ab t326,899.3 3 326,899.33 Depo~Puleølonm~- 12,863.97 12,86397 Teotflstnnoney blli - 339,763.30 3 6330 ToafinanciallHabillidki Anils and ibilitia wich a measured at amarled egåt for wich far valUm are dllmed -Ai at April 2015 Level Level2 Leve] _ Total Finandal asaets EmplOyte advaces To~a fInsandal a~s Financial Liubilities Burroai 143,988.43 143,988.43 Destal Retedian momey- 6,893.46 6,893.46 Total finanial UabIltles 15,81.89 1MSBI.89 Leve] 1: Levet I tierardy inidea ffiaial istrumunt d ufing quated indude listed equity insaumnts, traded bosb and mutual sl det lave quoted price. The fair vale of all equity ineument (duding bondh wei ua tadedn te atok exd"aen u vahwd a si% doa pik e us at therpartng peiod Level 2: Tht fair value a fndal in&n~tenta that are not traded in an active market (for exmp, faded bond over-tite counter w~,deivafv) ia deA uing vaknan techniquos wich mannise the ute ofabaevable market data and rely au httle a posmlbl on %9k~y-ape reduu to fli vate on uintmi aue ob ~a, th n Wd mi~ed in lev" 2. Level 3: If one or more of tht sigi~ænt iupts is not based on obærvable market data, te instrument is induded in leve! th for sereties. 'fhere areno trmnsfera between levd 1 and levet 2 during thet year Dedicated Fright Corridor Corporation of Indla Liated Nota to financial staents for the year endod 31 March 2017 (A anmo are i }1>eur kaa, w~lXn rhtvwisc s*4) C. Fair value of financial at and Habillties measured at atnortised cost As at 31 March 7 As t 31 March 2016 Ast I Apri 2015 Carrying reirCarsy~ig Fakrvlle Fair Valu Aount VAmount AFmaount Financial assts Employe adsU« 37,48 37.48 18.14 1814 37.48 37.48 18,14 18.14 Financial labiltes Borowigs 694,545,99 694,545.99 326,899.33 326,99.33 143943 143,988.43 Deposits/ Rtention money 15,053.14 15,053.14 I1863.97 12,863.97 6,893.46 6,893,46 709,599.13 709599.13 339,763.30 339,763.0 150,88189 150,881.89 The carr~mg amount of ~rnt iancial ata and liailies mis au cash snd cah equivalnt, bank balanes Vxpeinditur on läad aquisitio cpEån= on peta murvey, racovorable from stal cornulmns, a~oity depo~ta, otr payabl, intrest sand, -ecuitty depoit NDMC, mploye advancos, -amest mony daposil olt«e pyales, fund received from MOR pendirg djutnt, interet acrued on lost from IBRD as conidered to bo tia ans au t J5 va~s duo to ekoir sho-torm natur. The fir valueg foamployee ad ac were cdoa ulatcd based on cah fows diwcounted ag a current tendirg rate. They o dar culed a lave13 ri vabi in the fair value i~rarchy du to tho indusion of unobsvable input " incling coutnrpaty credit The fair valus of non-currnt borrowings deposits and rotention money are baed on diacountad cash flows using z =st bonowing re. They wo tlassiflgd as level 3 far valus in the fair ae hierchy du to the use ofunoboarvalo inpu , including own credit åk. 11. Financial risk managment Tha Company lia expoure to the f*llowing risks arirg from financial urmWnt: - edit risk -liquidity riik &d - inrket risk 1, Risk managemonk immcwork The Company's Audit Co~bniute la overall rwponsibilty for the ostabhi~bunt and ovenil of the Company's risk nuage~t ~cmnwork eRMF>. As pr RMF company has well laid down a orga~ sttun. fr ido~ti . priotising and nii na of tho risk. Th. Adit Co bniues oeebtd i Rsk MarCageme onmittao CRMCN whc in asociaton with Risk M ~aion Plan Owners responsibl for idnlifation, puioritaa~ and nain ofthe risk. A risk ~bry oftop 20 risk and stigadn plan ispiaco, Thesi ~ a riski ndrtignå n plan are monitord piadicay for updation of risa ants u tri gti Tho RMC rport to the Auit Con~e on periodLal basc on ita ac~tvid. Tho Company'rsk d anagemnt polinis are stablished to idontify and aa~ th dik. faced by tho Company, to set approp~iats risk hmni and conuolf and to monitw rikl and adh~rawo to limits. Risk manaenent polims and sy are reviowd r~gulady to rolot rga in na~¾« codis da tho Cop~a& activitis. The Company, through its uaiing and angoment standard and procodurs, a=ma to maintnin a disap~t and oont~vo contrl envirn~t m wNch all mployoes un d thir rolcs and obligadona. Tho Comp Audt Commt ovwsas how =anoanat monitor= con~pliace with the Copanys risk managemet framiwork, and r~viowa tho adoquay of the risk managemat famework in relation to th iskn acd by the Company, Tha Audit Comnitt is uatd m ito ovrsigt rote by Inta s Audit hante l Audit undetak boti rnglar and ad hoc rmviews of risk managqn~nt contolt and procadureb tho rault of wht a= aportd to tho Audit Connu. IL Credit risk Credit risk ts the risk of firancia oss to tho Company ifa stor or countrparty to a fimancial instmint fal to mcct iis conractual obligadou and ads prnapaly from tho Compan~s reoivabks from custrsa and ivmenents in deb ecuntie, At presnt Company is in constuclion plase and do not have any custom« or inv~nnent in datA nsrtnns. Th financial am mäinply couists ofnonym held in banks psnding uilisadnin constuction a~tivty. Company dos not perceive any cdlit risk in repect ofthos financial ant The ~arrying amount of fiancial as~ets rpreents the maimum credit eposur. O*er recalvebles Other roeivale maintl consi~t of recovrable from anploy~es. The Company establ~ha an allowan fr impainm~nt that ropmens te simate of w loss in ropect of othir reoåevblea. Basi the evaluation, the managomnnt has detsmined tiat there a no d mpin t los on other m~indb. Cy{k ! 4%) rts~ ¥ tuntl poition, mncal perfonnance and cath flows is set out i m the flwirng tas and the notes that accompany the tble. Exemptions and exceptons avalled Set ont below atc the apphicabe "nd AS 101 optional exerntns and mandatory xce~ption applid in the transition from previous GAAP to lWd AS. A. lnd AS optional exemptions ) Deemed ost lnM AS 101 perm s a fint-tne adopt to eli~t to coninn with the cang vla. for all ofitz propty. plat and equiamnt u rmcognied in the fnandal atants - at the date of ~tnaton to lod AS, meaurd per the previous GAAP and usä that as it* deemed cost a at the dat oftransfion aler making ne y adju~tnnta ftr de- comsonng liabddea. Thå exmption an dso be und foratangible å nts covered by lMd AS 38 Intangible Aseta. Accordngly, the Company ts elected to mrte alå ofitY property, platt and equipmmnt ad intsible asets at thr previous CAAP canying vahi. (1) Lese Appendix C to hnd AS 17 req~ret an entity to asn whetr a con~rat or arragement contans a leae. In accordaace with Ind AS 17, this asetn~nt iould be canied out at the inc-pn of the cot or a~rlgemn dt nd AS 101 provids an optit to nake this asesmant on the bamås of facs and icumtana~ «uting at the date of trartion to lnd AS, except where the et is wpected to be not at4 fe Company has elected to apply tis wxkmpti r uch cootrac~tsrrngenmts. (INI) Long Term Foreign Currency Monetary Items hnd AS 101 pernts a fi"t-time dopter to contre the poly for acou tg ft exchange differncee ariuing from taslation of long-t~nn foegn ~mancy mntty it~ns recogased in the fnancial stateenta for the piod ending inmediatoly before the berming ofthe firat Ind AS financial reporting paiod u p« the previous GAAP. B. Ind AS mandatory e*ceptlons (1) Estmates An emity' estimate in accordance with Wnd ASs et the date of tanition to lnd AS saa be conmiateat with timates made for the same date in accordane with pre-iou GAA? (ater adjustnts to St any dience in accouning policies), anles ther is objeive evidene that those etim~t wre in caor, lnd AS isnnate as at l Apri 2015 are consistent with the estimates as at the ane date rnade in oonfrmiy with previous GAAP. The Company made etmate for Impainnmt ofi nancial sets hand on expected cedit loss model in accordance with lnd AS at the date of truaiion ~ s thee were not required under previous OMAP. Classiflcation and measurement of tnancial assets hu AS 101 requåes an entity to asmas csicaton and meas ntemnt of ftnmnan ets on tu basis of the facts and ircum ~ances that watt at the date of trUantion to lnd AS. tA ** Dedicated Freigt Corridor Corporation øf India LImited Note to finandal statements for the year anded 31 March 2017 (li amows are in n j u es a rwle o&nerse s1a C. Rcnhlations between prevlous GAAP and Ind AS Ind AS 101 rquima entity to reconde equity, total comprenive icome and cash flow, hr prior penod. The following table represent the reconwiete tom preious GAAP to Id AS. Reconcillation of equity As at I Aprø 2015 As at 31 March 2016 Particulars Note to fint Previous Adjustments Ind AS PreviMus Adjustments lad AS time adoption GAAP GAAP ASSETS Non-current assets Property, plant and eqipment 1,182.58 - 1,182.58 1,49,17 - 1,49617 Capaalwork-in-progress a,b,c,e,g 327,228,88 (5,575.85) 321,653.03 577,715.86 (9,52095) 568,194,91 Other intangible aset 4137 41.37 139.86 - 139.86 ~tangible aets under developent 911.88 - 91188 989.54 - 989.54 Fmancialasets (i) Othr fn-curretmncial asets e 145.62 416.34 561.96 194.27 416.34 610.61 Deerral tax aes (net) 776.62 776.62 Oher on-current assets 284,557.09 2,364.04 286,921.13 450,823.36 2,543.84 453,367.20 Currentassets Fiacial aet (J) Cash and csh equiwlnts 79,685.71 79,685,71 157,307.81 - 157,507.81 (i) Bank balance o than (i) above e 3,799.04 (416.34) 3,382.70 3,099.46 (416.34) 2,683.12 (ii) Ow currnt mancial aets 1,977.84 - 1,977.84 5,86027 - 5,860.27 C~renttax asets (net) 440.50 - 44050 305.08 - 305.08 Othercuret ø aets a 157.06 153.44 310.50 16984 . 174.10 343.94 TOTAL ASMETS 700,127.57 3,058.37) 697M069.20 1,198,30.52 (6,0239) 1,192,275.13 EQUITY AND LIABILITIES Equily Equity sae capital 371,566.88 - 371,566.88 480,266.88 - 480,266.88 athe equity 119,710.62 - 119,710.62 302,890.86 (1,474.78 301,416.08 LIABILITIES Non-current ,abiltet Fmancw liabl hte. (L) Borrowings a 144,108.49 (120.05) 143,988.44 327,217.83 (318.49) 326,99.34 (i) Othnon-currentmcia labities b 17.137.38 (2,938.32) 14,199,06 32,367., (4,233.12) 28133.96 Loen proviort 557.60 557.60 1,031.8w 1,03188 Deferrd tax ablitis (net) - Othernn-curtliabiås 5,751.42 - 5,751.42 5,932.86 - 5,932.86 Curreni liabilities (liOtheralmanwb alte g 35,809.58 - 35,809,58 41,123.84 - 41,123.84 O er cat haBelitin 5,448.91 - 5,448.91 7,273.63 7,273.61 Short-ten proviuions 34,85 34.85 82.59 82.59 Currnt tex libMiliea (nt) 184 1.84 114 .07 - 114.07 TOTAL EQUITY AND LIABILITIES 700127.57 (3.058.37) 697069.20 1,1981L301.2 6026,39) 1,192,275.13 "he prenou GAAP figures have be reclas~låed to confomn to Ind AS presentaion requirme~nes for the purpome of ths note R) Dedicated Fretght Crridor Corporation r lndi Lnited Notas la financial staterentz for the yoar ended 31 March 2017 (Allarnoe are in npees år4 Wie 00tw ~sMSaO Reconellation of total comprehonsive inome for the yar ended 31 March 2016 Partculars Noteo to firats Prevlous Adjustmenbt ld AS omc adoption rAAP Revnue Rovenue rm opee n Other icome f 9,89613 186.29 10,082.42 Total income 9,896.13 186.29 10,082.42 Expenses EmpIo3e bemfits expese F~anceort. Dprecison an aort~iaion empense f - 211.10 211.10 Other expens« f 167.98 2,219.23 2,387.21 Toali Expeus 167.98 2.,3a033 2,59831 Proft/ (los) hdore tax 9,72815 2,244.04) 7,484.11 Tax expense: Curren tax 3,408.32 0.03 3,40835 Defirred tax - (7m08) (77408} Proit/ (~s) for the period (A) 6,31983 (1,469.99) 4,849.84 Other coompreheosivo Iacome Itees that wil not be roclalfied to profil or loss Msurement ofdeed benfit plea - (7.35) (7.35) Income tax reladng to rameasurment of defined berit pla - 2.54 2.54 Total other comprehensive ancome for the period (B) -4.81) (4.81) Total comprebensive Income for the period (A + B) 6,319.83 1471-80 4,8403 DE ACC, Dedicated Ftist Corridor Corporation of India Limited Note to financial stalgments for the year ended 31 March 2017 (Alamowr are in nees las ska osriwse sAve Reconciliation of total equity a at 31 March 2016 and I April2015 Parti*ulars Nos o - March2016 IAprif2015 timseadoptionsSMrhl6 lpSZI Total equity (shareholder's (uds) as per previous GAAP 4971597.33 38,577.50 Reclassification: Share applicationmoney pending allotment 285,560.41 108,700.00 Rarneasurement of defined benefit plans c (4.81) Adjusted Total equity (shareholder's funds) as per previous GAAP 783,52.93 491,277.50 Adjustments: Borrowings - Amortised cost adjusment Discounting ofretention money Prior Period a4usomme capitalised in IGAAP in 2016 General and administraion expenses decapitalised net ofrelated income f (2,244,05) Tax effet ofadjarnents d 774.08 Total adjustments (1,469,pn) Net impact brought forward from Opening balance sheet * . - Total equity as per Ind AS 781 .6,2S 491277.50 Reconciliation of total comprehensive income for thvear ended 31 March 2016 Particulars Notes to first- Amount 1ig adootion Profit alter tax under lndian GAAP 6.319,83 Adjustments General overheads decapitalised and charged offa an xpense f (2,244.05) Reeasurementa ofpot-nploymet beneft obligations c 7.3 Ind AS adjustments capitalised since Company is inpre-operatve stage (735) Tax efficts ofadjustmenms d 774.08 Total adjustments (1409.98) Profit after tax as per Ind AS 4,949,85 Other Comprelensive inome * c (4,81) Total Cow preheasive income for the year * 4 Impact of Ind AS adoption on the statements of cash flows for the year ended 31 March 2016 Particulars . Previous Adjustments lad AS GAAP" Net cash flow from operating activities 18,873.21 (25,665.90) (6,792.69) Net cash flow from inwaig activitieo (401,551.71) 24,024.86 (377,526.85) Net cash flow from financing activies 459,801.01 2,34064 462,141.64 Net increasel(decrease) In cash and cash equivalents 77,122.51 - 77,822.11 Cash asd cash equivalents as at I April 2015 83,068,41 79,685.71 Cash and cash equivalents as at31 March 2016 160,190.92 - 15750782 ''D AG 0 Dedicated Freight Corridor Corporation of India Ltmited Nota to finandal statements for the yar ended 31 March 2017 (All~anou ars ln ness irca k" dmku odwmi sla$d) D: Notm to first-tne adoption: i. Borrowiap Ind AS 109 rquire ranacdon cost incued towrd oginasion of browings to be deducUd from the carryb¥ amount ofborrowing on inital recog~ Thas cost are rcognsed in the proft or loss aver the tenure ofthe borrowing as part ofthe interest xpme by apying the offhetive mest rate metod Undc pr~ymus DAAP, he s trnsacon costs wer chargod to profit tloss a and when inrred. Accordingly borrowings s at 31 March 2016 have been reduced by Ra 318.50 (1 April 2015 - Rs, 120.05) with a correspondig adjustr~nt to capital work in propea b. Security deposits/ Reteo don money Under the previous GAAP, interest free securty deposita/ retention monfy (that ro refudable in cash on conpletion of the contact) are recorded at their ransacdon value. Under ld AS, all f&ancial labiita are requi d to be recogni~ed at ir vake. Accrdiny the Company bas fi valued thane scurity depoW"ts unde al AS. Diffan hetween the fir valu and tnaoan vaube of the mecuity dep~it has been recogr~nd as a reduc~on to the relevant peditme. Thc Company den care i~mes on te mid får vaa ofthe ecunty depo~t/rtention money Cons~quent to thi change, the amount afsecurity deposits decreased by Ra 981.89 a at 31 March 2016(1 April 2015 - Ra. 1,669.16), the total expens~ oharged to the proft and loss on account of accretion of the hbliy amounts to Ra 669.71. The diffeac between the fir val and the ransaction valug ofthe eurty deposit amourdng to R8.981.89 have ben adjuted from the capital work in progr s balancc. . Remeasurments of postremploymenot benefit obligations Unde Wnd AS, rwmessurmentu i.e. actua-al gam and lossa and the return on plan sett, excluding amounts inoändd in the nt inut wxpene on de not deid benet ia w recognid in other comprehenuive income intad of profit or loss. Under the provious GAAP, thess rneasuremnts were foming part ofthe prot or lt for the ~. As a rult of this changN the profit for the yar ended March 31. 2016 dei-sased by Ra 4.81 (mst of tax). There is jo paton the total equity s st 31 March d. Deferred Tax Defied tax have ben recognised on de a4ustments made on transiton to Ind AS. . Retailled Oarnings Rotined eaninga as a April 1, 2015 ha been a4justed consequm t to the abov Wnd AS trans djustments f. Geueral and administratIon overhead chard off as an expf~e to profit and loss account Und« pravio GAAP, the company was capita~ing thegrai and adminiatration overhead in the capitl work in proges. Howevr nder;ad AS eneraland admimstation overhad should be charged offas on expese to profitma loss account. A~ ardingyamu cbarged off han a expansa (t of incom fr tha ya rndd 31 March 2016 wounng to Ra 2,244.05. For Baweja & Kaul For ad on behalfof Board of Direts or Ded Icated Fruighi Corridor Corporaion Of India Chartered Accountant Lnited I* No.53A 05&UN CASam9 K GCooo Sham NarShSalecha Mew Kapoo e Manging Director Director - Huane. ComrpanyScretary Membersmip No - 090758 1% DIN-7022393 DIN - 0000843812 ACS - 18954 Place New Delk A C Place New Ddhi Datedi: Dtedf