BAWEJA & KAUL Chartered Accountants Independent Auditors' Report Director, Finance Dedicated Freight Corridor Corporation of India Lirnited New Delhi We have audited the accompanying project financial statements of "EDFC-1" of Dedicated Freight Corridor Corporation of India Limited (The Company") which comprise the Balance Sheet as at 31" March 2016, and the Statement of Sources and Application of Funds and Statement of Expenditure for the year then ended, and a summary of significant accounting policies, explanatory notes, a List of IndividuAl Withdrawal Applications and a Statement of Reconciliation of Claims to Total Application of funds. The financial statements have been prepared by the management of the S company based on the reporting provisions of Section 5.09 of the General Conditions of the contract dated October 27, 2011 between Ministry of Finance, Government of India and International Bank for Reconstruction and Development. Management's Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements in accordance with the financial reporting provisions of Section 5.09 of the General Conditions of the contract dated October 27, 2011 between Ministry of Finance, Government of India and International Bank for Reconstruction and Development; this includes the design, implementation and maineac of internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (ICAI). Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures ill the financial statements. The procedures selected depend on the auditor's judgment, including the nqsessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of aCecounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion no statements of "EDFC-1" of Dedicated Freight Corrid In our opinion, the project financial dta e d Maci 0 6 aep ep rd n a c r a c Corporation of India Limited for the year ended March 31, 2016 are prepared, in accordance wJ thefinancial reporting provisions of Section 5.09 of the General Conditions of the contract dated S306 Corporate Towers 85A Zamrudpur, Greater Kailash-, New Delhi -110048. Tel: 29231090,29248587. Fax: 46544268 0H. No. 32, Sector-B8, TrikutaNagar, Jamnmu Tawi (J & K) - 180012 BA WEJA & KAUL Chartered Accountants Octobor 27, 2011 between Ministry of Finance, Government of India and International Bank for Reconstruction and Development. Further, we are of the opinion that: 1. The PFS give a true and fair view of the financial position of the Project at the end of the period under audit and of the sources and application of project funds for that period. 2, The project funds were utilized for the purposes for which they were intended. 3. Expenditure, including assets created under the Project, shown in the PFS is eligible for financing under the relevant Loan agreement and these were incurred through internal sources and now reimbursement is sought through IUFRs from the World Bank through Ministry of Railways. 4. The IFRs submitted during the period under audit are supported by adequate detailed documentation maintained in DFCCIL's offices/branches to support claims to the World Bank for reimbursement of expenditure incurred. 5. The accounting and internal control systems underlying the project, including material compliance with the Project Implementation Manual, and oversight over the project funds were adequate and maintained throughout the audit period. 6. Procurement done by DFCCIL under the project had been undertaken in accordance with agreed procurement arrangements. Basis 'of Accounting and Restriction on Distribution and Use Without modifying our opinion, we draw attention to executive summary of Management Letter, which contains detailed observations observed during the course of audit. . The financial statements are prepared to assist Dedicated Freight Corridor Corporation of India Limited to comply with the flivvical reporting provisions of the contract referred to above. As a result, the financial statements nay not be suitable for.another purpose. Our report is intended solely for Dedicated Freight Corridor Corporation of India Limited and World Bank and should not be distributed to or used by parties other than Dedicated Freight Corridor Corporation of India Limited, or World Bank. For Baweja & Kaul & hartered Accountants rm Registration No: 005834N -'D' 4Phiip KKaul Place: New Delhi Partner Date: Membership No: 083066 * 306 Corporate Towers, 85A Zamrudpur, Greater Kailash - I, New Delhi - 110048. Tel: 29231090, 29248587. Fax: 46544268 * H. No. 32, Sector - 8, Trikuta Nagar, Jammu Tawi ( J & K) - 180012 "7) DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED BALANCE SHEET OF EDFC 1 PROJECT AS AT MARCH 31,2016 Amount in (Z) PNote As at March 31, As at March 31, ParticularsNo 2016 2015 1. EQUITY AND LIABILITIES (1) Shareholders' Funds (a) Share Capital (b) Reserves and Surplus (2) Share application money pending allotment (3). Fund transferred from head office 62864,03,646.55 57212,02,820.00 (4) Non-Current Liabilities (a) Long-Term Borrowings 1 118219,20,187.40 52665,52,806.00 (b) Other Long Term Liabilities 2 12822,83,629.00 7247,85,784.00 (c) Long Term Provisions (5) Current Liabilities (a) Other Current Liabilities 3 11131,42,110.63 5888,08,643.00 (b) Short Term Provisions TOTAL 205037,49,573.58 123013,50,053.00 II. ASSETS (1) Non-Current Assets (a) Fixed assets (i) Tangible assets 4 50,31,790.60 28,78,411.00 (ii) Intangible assets (iii) Capital work in progress 5 161750,83,132.98 87486,55,205.00 (iv) Tangible Assets under development (v) Intangible Assets under development (b) Long-term loans and advances 6 43093,39,966.00 35577,01,136.00 (2) Current Assets (a) Cash and Bank Balances 7 136,98,088.00 (84,35,095.00) (b) Short-term loans and advances (c) Other current assets 8 5,96,596.00 5,50,396.00 TOTAL 205037,49,573.58 123013,50,053.00 The Notes referred to above form an integral part of the Place: New Delhi . ,4 Date: FOr F3AVVEPA & K 6-. 3~i ' ~CHARTERED ACCOUNTA SI'- A Cd 0lfeB ?a~ 1~ jala Ltd. ueaicated Frys or,4TdO Dedicated Freight Corridor Corporation of India Limited Sources and Uses of Funds for Financial Year Ending 31st Mar 2016 (INR in ,000) Opening Amended Opening Balance (Cum) Balance expenditure for FY0 (Cum) Ending 31th March 01. or Project to 01.04.2015 2016 Date as on 31.03.2016 A Opening Balance'* Project Bank Account B Sources of Funds Amount received from IBRD 4,862,965 6,163,263 11,156,000 Counterpart funding - Equity 4,392,087 (1,483,312) 2,785,038 Others(Front End FeeJ 129,772 Total Sources 9,384,824 4,679,951 13,941,038 C Uses of Funds Civil works - Part 1 of Project Civil Works and Track I Bhaupur- 3,651,132 1,261,163 4,847,881 Etavah (135 km) Civil Works and Track II Etavah-Tundla 2,632,977 1,192,492 3,804,171 (101 km) Civil Works and Track IE Tundla- 2,584,419 1,186,467 3,732,860 Khurja (107 km) Power Signals, Telecom Systems - 760,797 760,797 Bhaupur- Khurja (343 km) Total Civil Works 8,868,528 4,400,919 13,145,710 Goods - Part 1 of Project Total Goods Consultants' services * Part 1 of Project Quality and safety monitoring 16,366 46,830 63,196 consultant 76,549 41,850 118,399 Khurja-Dadri-Ludhiana-Mughalsarai (APL II and III) General Consultant Services - - - 156,304 158,107 314,411 Bhaupur - Khurja (APLI) PMC for construction supervision and contract management services 1,462 2,874 4,336 Social & Environmental Safeguard Monitoring and Review Consultancy (SESMRC) for Khurja-Bhaupur Section of EDFC Project (343 Kms, APL-1) Total Consultants' Services 250,681 249,661 500,342 Goods, Consultants' Services & Training under Heavy Haul TA (Part 2 of Project) Procurement of MIS(HCLT) 60,875 7,674 68,549 Institutional Strainthening Module Marketing and Commercial Strategy( 9,652 9,652 DMCSD)_ h 7 If/ANJEEV KUMAR JAIN Addi. General Manager/ Finance Dedicated reight Corrdor Corporation of India Ltd. A ovt Indi l inistry of Railways) Enterprise Technology Research and Evaluation 4,995 4,995 (HHRCDI)2522 Consultancy for Non-Discriminatory 2,522 2,522 Access of DFCCIL (CSNDAD) Communication Need Assesment Consultancy Services for Green House 6,022 6,022 Gas Emission Reduction Analysis for DFC Consultancy Services for Design Review 12,016 12,016 Consultancy for Khurja-Bhaupur Section of EDFC Consultancy Services for Civil 6,513 6,513 Engineering Proof Consultancy for Consultancy services from Internationa] 3,694 3,694 Panel of expert for EDFC * Legal Consultancy Services for Dedicated Freight corridor Consultancy Service for Overall IT 9,325 606 9,931 Stratergy and Program Management for DFCCIL (WIPRO) Capacity Building and Training of 21,589 3,922 25,511 DFCC Staff M/s Vision EIS Consultancy IHHA-Seminar 11,297 11,297 4,512 4,512 Setting Up of Enterprises Risk Management Frame Work Total Heavy Haul 135,843 29,371 165,214 Front End Fee 129,772 129,772 D Counterpart (To be specified) - Total Counterpart Total Uses 9,384,824 4,679,951 13,941,038 E Closing Balance Adjustment _r_4,79,95 _ *TOTAL 9,384,824 4,679,951 13,941,038 * Detailed satement is attached as Annex-A. W7chy ANJEEV UMAR JAIN AddL. Senral Manager /Finanfce Dedicated Frght Co d! Coporation of India Ltd. d (A Govt. ol di Misty of Railways) Enterprise 팀 렙 痺 6 .·汕 《 프 · r 冬 亡 - 了 & 玆‘ i, 【 J&1/j면· `· · 。 & ’쵬눌 [ g 뉵 집 : ㅉ , 「 ‘탭! •■■■甲■熙口口口口戶■甲熙網一 常 、 、'~ & 計一 邵口口口口口••••-~-,•, ,申 t.中 中 DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED Notes to the Financial statements 1 Long Term Borrowings Amount in (T) Particulars As at March 31, 2016 As at March 31,2015 Term Loans From Others Unsecured Loan Loan from M inistry of Railways,for EAP/TBRD Projects-8066 118219,20,187.40 52665,52,806-00 Total 118219,20,187.40 52665,52,806.00 2 Other Long Term Liabilities Amount in (Z) Particulars As at March 31,2016 As at March 31,2015 Trade payables (i) Misc. Depsoits (Retention money & security 12821,70,903-00 7247,85,784,00 Depsoits receied from the Supplier& Service Providers (ii) Income Received in Advance 1,12,726.00 Total 12822,83,629.00 7247,85,784.00 3 Other Current Liabilities Amount in (Z) Particulars As at March 31,2016 AsatMarch3l,2015 (i) Earnest Money & Performance Security Deposit 30,34,980.00 13,25,937.00 (ii) Others Payables 10121,65,455.00 5308,14,567.00 (iii) Misc, Deposits (Security Deposits received &om Supplier & Service Providers) 60,44,967.00 55,69,211.00 (iv) Interest accrued but not due on Loan from MoR on 331,94,783.29 126,42,316.00 IBRD (y) Duties & Taxes 587,01,925.34 384,56,612.00 Total 11131,42,110.63 5888,08,643.00 KuMAR JAIN Genetal MallaVT co PoTatiQo rPl T 図国園日国国国■園口■■■■戸ー 0 り --「、,---,&―・―--―、…;, 必 必 〕尸:·〕〕!!’〕‘〕〕,、. DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED Notes to the Financial statements 6 Long Term Loans & Advances Amount in (T) Particulars As at March 31, 2016 As at March 31, 2015 A. Capital Advance i. Advance for Shifting of Utilities 25391,66,353.00 12763,13,529.00 ii. Mobilisation Advance 17706,04,435.00 22808,78,107.00 Total A 43087,70,788.00 35571,91,636-00 B. Security Depo i. Security Deposit-.Electricity 19,300.00 3,700.00 ii. Security Deposit - Lease Rent 5,35,300.00 5,05,800.00 iii. Securi!y Deposit - Telephone 14,578.00 Total B 5,69,178.00 5,09,500.00 [total (A+B) 43093,39,966.00 35577,01,136.00 7 Cash and Bank Balances Amount in (7) Particulars As at March 31, As at March 31, 2016 2015 Cash and Cash Equivalents Bank Balances - Current Accounts 136,98,088.00 (84,35,095.00) Total 136,98,088.00 84,35,095.00) 8 OTHER CURRENT ASSETS Amount in (T) As at March 31, As at March 31, Particulars 2016 2015 i) Recoverable from Staff 1,87,000.00 ii) Other Recoverable 4,09,596.00 5,50,396.00 Total. 5,96,596.00 5,50,396.00 TTTR v 'M/ANJEEV KUMAB JAN AdR General Manager I finam. DedicRtO Night. 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