Board of Directors

Mr. V. Madhu IAS Principal Secretary to GoK – IDD Chairman

Mr. V. P. Baligar IAS Principal Secretary to GoK – Director Commerce & Industries

Mr. G. Baderiya IAS Special Secretary to GoK – IDD Director & CEO

Mr. N. K. Shukla IRTS Executive Director Director Perspective Planning Railway Board

Mr. N. C. Sinha IRTS Chief Operations Manager, S W Rly Director

Mr. B. B. Verma IRAS Divisional Rly Manager, Mysore Director

Mr. A. B. Shenoy CFO & Company Secretary, Director Infrastructure Deve Karnataka, Ltd .

Mr. Ashwin Paul Head Commercial, MEL Director

Mr. Tamilvanan Chairman, New Mangalore Port Director1

Hassan Mangalore Rail Development Company Limited Hassan Mangalore Rail Development Company Limited was incorporated in July 2003 under the Companies Act of was incorporated in July 2003 under the Companies Act of 1956 as a joint venture of the Government of Karnataka & 1956 as a joint venture of the Government of Karnataka & the Ministry of Railways.the Ministry of Railways.

Objective: HMRDC to take over the gauge conversion of Objective: HMRDC to take over the gauge conversion of the Hassan Mangalore railway line and ensure its early the Hassan Mangalore railway line and ensure its early completion through appropriate and timely funding. completion through appropriate and timely funding. The company was to raise the required resources through The company was to raise the required resources through debt and equity.debt and equity.

The Beginning

2

Project ImplementationProject ImplementationThe gauge conversion of the line has been completed under a The gauge conversion of the line has been completed under a set of agreements signed by the Company with the Ministry of set of agreements signed by the Company with the Ministry of Railways and the South Western Railway.Railways and the South Western Railway.

• Concession Agreement• Construction Agreement• Operations and Maintenance Agreement

The line was commissioned for goods traffic on 5th May 2006 and

for passenger services on 8th December 2007.

Company is enjoying Tax Holiday for 10 years from COD & Company is paying MAT at 15% as against 33% IT.

Company’s Credit rating is LA (Adequate credit quality) given by ICRA

3

Framework of operation of Framework of operation of SPVSPV

Key features of the framework are:Key features of the framework are:• Cost of construction financed by HMRDC Cost of construction financed by HMRDC • Line capacity to be used primarily for goods servicesLine capacity to be used primarily for goods services• Assured passenger services to the extent operated on Assured passenger services to the extent operated on the meter gauge.the meter gauge.• Running and operating costs of passenger services to Running and operating costs of passenger services to be borne by Indian Railwaysbe borne by Indian Railways• Cost of freight operations and maintenance of the line to Cost of freight operations and maintenance of the line to be met by HMRDC. be met by HMRDC. • Revenues to Company to accrue from freight onlyRevenues to Company to accrue from freight only• Revenues from passenger trains to accrue to IRRevenues from passenger trains to accrue to IR

4

Concession AgreementConcession Agreement

Under theUnder the Concession Agreement, the Ministry of Railways Concession Agreement, the Ministry of Railways

has granted HMRDC a concession for 32 years during which has granted HMRDC a concession for 32 years during which the company would convert the MG line between Hassan and the company would convert the MG line between Hassan and Mangalore into a BG line and thereafter undertake its Mangalore into a BG line and thereafter undertake its operation and maintenance during the concession period. operation and maintenance during the concession period. To enable construction of the new line, the existing assets To enable construction of the new line, the existing assets including land, station buildings, formation, bridges etc.including land, station buildings, formation, bridges etc.

(assets forming part of the rail network and necessary for (assets forming part of the rail network and necessary for gauge conversion) have been leased to the company. gauge conversion) have been leased to the company.

5

O & M AgreementO & M Agreement

Under theUnder the Operations and Maintenance Agreement Operations and Maintenance Agreement HMRDC has contracted with SWR for operation of goods HMRDC has contracted with SWR for operation of goods train services on the line and its maintenance till the train services on the line and its maintenance till the termination of the concession period.termination of the concession period. 

Construction AgreementConstruction Agreement

Under theUnder the Construction Agreement signed between HMRDC Construction Agreement signed between HMRDC and South Western Railway (SWR) the later has been and South Western Railway (SWR) the later has been appointed as the Engineering, Procurement and Construction appointed as the Engineering, Procurement and Construction (EPC) Agency for the line and entrusted with the construction (EPC) Agency for the line and entrusted with the construction work. work. 

6

Project FinancingProject Financing

InitialInitial Project Cost Project Cost Rs. 293 cr Rs. 293 cr

Construction Cost Construction Cost Rs. 275 crRs. 275 cr

RMV EquipmentRMV Equipment Rs. 4 crRs. 4 cr

Pre-operative exp & IDC Pre-operative exp & IDC Rs. 14 crRs. 14 cr

Funding throughFunding through

Subordinate debt from IRSubordinate debt from IR Rs. 141 crRs. 141 cr

EquityEquity Rs. 112 crRs. 112 cr

Term loans from banksTerm loans from banks Rs. 90 crRs. 90 cr

7

Construction of the lineConstruction of the line

Detailed estimate sanctioned by Rly Board in Dec 2002 forms the Detailed estimate sanctioned by Rly Board in Dec 2002 forms the basis of the construction agreement. basis of the construction agreement.

The 183 Km long MG line from Hassan to Kankanadi (both stations The 183 Km long MG line from Hassan to Kankanadi (both stations excluded) has been converted to BG.excluded) has been converted to BG.

Four new crossing stations were planned of which three have been Four new crossing stations were planned of which three have been commissioned so far. Arebetta station is yet to be opened.commissioned so far. Arebetta station is yet to be opened.

The cost of construction as per the Construction Agreement is Rs The cost of construction as per the Construction Agreement is Rs 274.71 Cr. In addition, HMRDC has also paid for rail mounted 274.71 Cr. In addition, HMRDC has also paid for rail mounted vehicles to be used for inspection & maintenance of the line.vehicles to be used for inspection & maintenance of the line.

The completion cost of the project is presently being worked out. It The completion cost of the project is presently being worked out. It is expected to be around Rs. 340 cr.is expected to be around Rs. 340 cr.

8

Operations & Maintenance of the lineOperations & Maintenance of the line

The Operations and Maintenance of the line from Commercial The Operations and Maintenance of the line from Commercial Operations Date (COD) i.e. 5Operations Date (COD) i.e. 5ththMay 2006 is being done by SWR May 2006 is being done by SWR under the terms of the O & M agreement.under the terms of the O & M agreement.

Freight due to HMRDC from traffic carried on the line is calculated Freight due to HMRDC from traffic carried on the line is calculated as per the inter-railway rules of apportionment. as per the inter-railway rules of apportionment.

O & M ( Fixed & Variable) costs payable by HMRDC are calculated O & M ( Fixed & Variable) costs payable by HMRDC are calculated on the basis of the formula prescribed in the O & M agreement.on the basis of the formula prescribed in the O & M agreement.

Fixed costs covering cost of manpower, cost of consumables etc. Fixed costs covering cost of manpower, cost of consumables etc. are payable irrespective of the traffic moved. are payable irrespective of the traffic moved.

Variable costs including fuel, cost of crew, loco and wagon usage Variable costs including fuel, cost of crew, loco and wagon usage etc. vary according to the tonnage carried on the line.etc. vary according to the tonnage carried on the line.

Apportioned freight minus the O&M costs constitutes HMRDC’s Apportioned freight minus the O&M costs constitutes HMRDC’s share of revenue.share of revenue.

9

Traffic ForecastTraffic Forecast

The Hassan Mangalore line is expected to carry up to The Hassan Mangalore line is expected to carry up to six six million tonnesmillion tonnes of freight per annum that includes of freight per annum that includes

Towards Mangalore Area:Towards Mangalore Area:Export iron ore to Port from Chitradurga – Tumkur and Hospet –Export iron ore to Port from Chitradurga – Tumkur and Hospet –Bellary sectorsBellary sectors

Iron ore for KIOCL pellet plant at MangaloreIron ore for KIOCL pellet plant at Mangalore

Cement, foodgrain and other general goods to Mangalore goods shedCement, foodgrain and other general goods to Mangalore goods shed

From Mangalore Area:From Mangalore Area:Coal Coal

Fertilizer importsFertilizer imports

Limestone, Iron Ore Pellet Limestone, Iron Ore Pellet

Fertilizer from MCF, Mangalore.Fertilizer from MCF, Mangalore.

POL and LPG from Mangalore Refinery, Thokur.POL and LPG from Mangalore Refinery, Thokur.

10

Capital Structure Authorized share capital   Rs. 125 Cr. (Equity share of Rs.10/- each)

Paid up capital  Rs. 112 Cr.

The shareholding pattern is as follows

  Government of Karnataka    Rs.28 Cr

Mysore Sales International Ltd. Rs. 7 Cr 40%

Vishveshwarya Trade Center Rs. 10 Cr    

  Ministry of Railways  Rs. 45 Cr 40%

   New Mangalore Port Trust    Rs. 10 Cr 9%

  Mineral Enterprises Limited Rs. 10 Cr 9%

  K-RIDE Rs. 2 Cr 2%11

Salient Physical Features of Hassan - Mangalore Section

1. Physical features 1. Physical features

Sl.No. Section Elevation (MSL) Distance Gradient

1 Hassan – 900m

42 kms. 1 in 100 plateau

2Sakleshpur – 967m

3 Sakleshpur  – 967m

55 kms. 1 in 50 Ghat

4 Subramanya Rd. – 113m

5 Subramanya Rd.  – 113m

86 kms. 1 in 100 plain

6 Mangalore – 9.5m

12

2. Track

    A. Rails

Hassan to Mangalore – 183 Kms

Main line track  class I  -  52 Kg rails

Loop line  class II - 52 Kg  rails

    B. Sleepers

Hassan  to Sakleshpur 60 Kg PSC sleepers  - M+ 4 density

Sakleshpur to Mangalore  60 Kg PSC sleepers  - M+ 7 density

Loop lines 52 Kg PSC sleepers  - M+ 4 density

    C. Fittings 

       Class - I fittings -  ERC Clips, GR pads, metal liners in mid section and GFN liners in yards

    D. Ballast - 250 mm cushion.

13

3. Bridges - Total - 670

  Major Bridges – 91   Minor Bridges – 549  Road over bridges – 16   Road under bridges – 12   FOB –2

4. Tunnels - Total Nos. 57   Total length      -  10.98 kms.    Longest tunnel -  578 mts No.11

5. Level Crossings - Total -  65   Manned    – 31   Unmanned - 34

6. Curves - Total – 110    80 - 85 Nos.-   30 to 50 - 25 Nos

7. Catch Sidings    Donigal station – Shrivagilu

8. Slip Sidings   Donigal, Yedakumeri, Shrivagulu

14

Details of Block Stations and Halts in Hassan-Mangalore

S.No Name of Station Jurisdiction Location at (kms) Inter Dist

1 Hassan (HAS) S W R 00.00 0.00

2 Alur (ALUR)

H

M

R

D

C

13.38 13.38

3 Balupete (BLLT) 27.53 14.15

4 Sakleshpur (SKLR) 42.06 14.53

5 Donigal (DOGL) 49.64 7.58

6 Kadagaravalli (KVGL) 59.30 9.66

7 Yedakumeri (YDK) 67.23 7.93

8 Arrebetta (TO BE COMMISSIONED) 75.00 7.77

9 Shrivagulu (SVGL) 85.35 10.35

10 Ssubramanya Road (SBHR) 97.32 11.97

11 Bajakare (BAJE) – Halt 103.36 6.04

12 Kodimbala (KDBA) – Halt 106.61 3.25

13 Yedamangala (YDM) 111.85 5.24

14 Kaniuri (KNYR) – Halt 120.44 8.59

15 Narimogaru (NRJ) 129.74 9.30

16 Kabakaputtur (KBPR) 139.61 9.87

17 Neralekatte (NEHL) 150.10 10.49

18 Kalladaka (KLKD) – Halt 158.93 8.83

19 Bantwal (BNTL) 164.19 5.26

20 Faringapeta (FRG) – Halt 173.65 9.46

21 Padil (PDL) S R 180.20 6.55

22 Mangalore Jn. 183.19 2.99

Line Capacity

The Maximum number of Trains that can be operated in a Day in a section is known as Line Capacity, which is decided by the running time of the Critical Block Section by a slowest moving train.

The Critical Block Section of HMRDC Line is DOGL-SVGL in the ghat section of SKLR-SBHR section, 95 minutes is the running time of the critical block section and line capacity is 15 trains per day including Passenger Trains.

Some amount of time to be provided for the track and signal maintenance works, which again reduces the Line Capacity to that extent which is equivalent to 3 Hrs/ 2 trains.

To increase the line capacity the running time of critical block section has to be reduced for which the provision of CATCH Sidings (safety device) to be under taken at all the stations on the ghat section.

To improve the line capacity maximum permissible speed to be increased to 45 KMPH in the UP direction without compromising the safety since the track strength has been upgraded over the period.

16

04/19/23 17

Operational & Financial Performance

Particulars 2006-07 (05/06-03/07)

2007-08 2008-09 2009-10

Carried Tonnage (MT) 1.60 4.60 4.51 5.01

Earnings 36.71 133.54 188.19 163.63

O&M costs 17.68 55.26 60.88 73.77

Income from Operations

19.03 78.28 127.31 89.87

Deferred OH 4.14 11.37 11.39 12.36

Rs. - Crores

04/19/23 18

Commodity wise EarningsCommodity 2006-07 2007-08 2008-09 2009-10

Carr Tonn (MT)

Reve % to tot Rev

Carr Tonn (MT)

Reve % to tot Rev

Carr Tonn (MT)

Reve % to tot Rev

Carr Tonn (MT)

Reve % to tot Rev

Iron Ore – Export

Domestic

Pellets

0.81

0.02

0.00

21.68

0.55

0.00

59.27

1.50

0.00

2.81

0.21

0.00

95.01

6.64

0.00

70.04

4.89

0.00

2.45

0.05

0.00

146.76

.12

0.00

77.99

0.07

0.00

1.86

0.08

0.06

96.99

1.95

1.47

59.27

1.19

0.90

Limestone 0.14 3.26 9.00 0.61 14.25 10.00 0.34 8.08 4.29 0.74 16.82 10.28

Cement 0.01 0.24 1.00 0.14 2.82 2.00 0.35 7.48 3.98 0.31 6.48 3.96

Coal 0.15 2.55 7.00 0.09 1.60 1.00 0.35 6.85 3.63 0.87 17.59 10.75

Food Grains/ Fertilizers

0.35 5.35 14.00 0.49 8.28 7.00 0.76 12.78 6.79 0.81 13.81 8.44

LPG/POL 0.12 2.94 8.00 0.26 7.05 5.00 0.21 6.08 3.23 0.29 8.48 5.18

Rs. - Crores

04/19/23 19

Commodity wise Earnings/Train Load2009-10

Train/ Commodity

Total No of Trains

Total Load (Million T)

Total Revenue

(Cr)

Load per Train (Tonnes)

Revenue per Train

(In Lakhs)

BOXN – Iron Ore

I O Pellets

Limestone

Coal

521

15

199

224

1.94

0.06

0.74

0.87

98.94

1.47

16.82

17.58

3723.61

4000.00

3718.59

3883.93

18.99

9.80

8.45

7.85

BCN – Cement

* F/ FG119

311

0.31

0.81

6.48

13.81

2605.04

2604.50

5.44

4.44

BTPG - LPG 136 0.15 4.29 1102.94 3.15

BTPN - POL 60 0.14 4.19 2333.33 6.98

04/19/23 20

Fuel consumption and costs for Commodities - 2009-10

Commodity *SFC in (Liters)

Carried Tonnage (MT)

Cost of Fuel (Cr)

Cost of Fuel / Train (Rs)

BOXN – Iron Ore

I O Pellets

Limestone

Coal

2.25

6.84

7.11

6.84

1.47

0.06

0.60

0.49

0.85

0.10

1.30

0.87

21519.00

66667.00

80247.00

69048.00

BCN – Cement

Fert/ FG 3.25

8.06

0.21

0.63

0.19

1.44

22892.00

59259.00

BTPG - LPG 7.93 0.12 0.69 69000.00

BTPN - POL 6.89 0.10 0.29 67442.00

* SFC – Fuel consumption for 1000 GTKM

Cost for Fuel – Rs. 39.10 per lit

Components of Fixed & Variable Costs

Fixed Costs Variable Costs

Man Power Cost of Fuel

Other than Man power Cost of Crew

Direct Supervision Charges Cost of Loco & Wagon Usage

Indirect Over Heads Cost of Running Repairs of Wagons

Misc. Documentation

Compensation Claim

Indirect Over Heads

21

04/19/23 22

Review of O&M Costs

Particulars 2006-07 2007-08 2008-09 2009-10

Carried Tonnage (MT)

1.60 4.60 4.50 5.01

Fixed Costs (FC –Rs.- Cr)

9.96 10.89 13.60 17.53

FC/Tonne (Rs.)

62.30 23.67 30.23 34.99

FC/Tonne/Km (Rs.)

0.34 0.13 0.17 0.19

Variable Cost (VC –Rs. - Cr)

7.72 44.37 49.91 56.23

VC/Tonne (Rs.)

48.30 96.46 110.91 112.23

VC/Tonne/Km (Rs.)

0.26 0.53 0.61 0.61

04/19/23 23

Income and Expenditure

Income:

Particulars 2006-07 2007-08 2008-09 2009-10

From Railways 36.68 133.76 190.32 156.20

Others 0.11 2.61 9.80 11.46

Total 36.79 136.37 200.12 167.66

Expenses:

O&M Railway

Fixed Costs

Variable Costs

Indirect OH – FC

Indirect OH – VC

Maintenance Exp

9.13

7.69

2.18

1.96

10.89

44.46

2.61

8.76

10.97

52.12

2.63

8.76

17.53

56.23

2.63

9.73

4.89

Expenses: Administration 0.32 0.61 1.02 1.27

Office Financial Expenses 4.14 6.14 7.10 1.74

Depreciation 25.65 28.78 29.74 30.23

Total 51.07 102.24 112.34 124.35

P B I T (14.28) 34.13 87.79 43.31

Tax Paid --- 3.89 9.76 7.36

P A T (14.28) 30.24 78.03 35.89

Rs. - Crores

EarningsParticulars 2006-07 2007-08 2008-09 2009-10

Tonnage (Million Tonne)

1.60 4.60 4.51 5.01

Gross Earnings (Rs.- Cr)

36.71 133.54 188.19 163.63

Gross Earnings/T KM (Rs.)

1.25 1.58 2.28 1.78

O&M Cost (Rs. – Cr) 17.68 55.26 60.88 73.76

O&M Cost/T Km- (Rs.) 0.60 0.66 0.74 0.80

Net Earnings (Rs. –Cr) 19.03 78.28 127.31 89.87

Net Earnings/ T Km (Rs.)

0.65 0.93 1.54 0.98

Profit/ Loss (Rs. – Cr) (Inc. of all Expenses)

(14.28) 30.24 78.03 35.89

Profit/Loss/ T Km (Rs.) (0.49) 0.36 0.94 0.39

24

04/19/23 25

Performance of the Company

Particulars 2006-07 2007-08 2008-09 2009-10

Total Income 36.79 136.37 200.13 167.66

Total Expenses

51.07 102.24 112.34 124.35

P B I T (14.28) 34.13 87.79 43.31

P A T (14.28) 30.24 77.64 35.89

E P S (Rs.) (1.28) 2.70 6.93 3.20

Rs. - Crores

26

-50

0

50

100

150

200

250

'06-07 '07-08 '08-09 '09-10

Income

Expenses

Profit

04/19/23 27

Fixed AssetsParticulars 2006-07 2007-08 2008-09 2009-10

GAV NAV GAV NAV GAV NAV GAV NAV

Railways

Bridges 26.91 26.53 31.03 30.19 32.94 31.58 33.45 31.54

Formation 69.99 63.41 69.47 55.70 74.22 52.78 74.79 45.58

P Way 188.70 171.09 189.51 152.51 192.23 135.54 193.04 116.44

Station & Building

9.66 8.80 10.10 9.07 10.38 9.19 10.67 9.21

Plant & Machinery

15.96 15.73 14.98 13.22 17.24 13.82 18.62 13.37

Total 311.20 285.56 315.08 260.69 327.02 242.91 330.47 216.14

Office 0.23 0.21 0.23 0.19 0.25 0.19 0.26 0.21

G Total 311.42 285.77 315.32 260.88 327.27 243.10 330.73 216.35

Rs - Crores

GAV – Gross Asset Value NAV – Net Asset Value

04/19/23 28

Capital Structure

Particulars 2006-07 2007-08 2008-09 2009-10

Share Capital

Paid Up 112.00 112.00 112.00 112.00

Reserve & Surplus (Cumulative)

--- 15.95 93.60 121.89

Secured Loans

Canara Bank 45.00 45.00 48.90 1.77

SBH 25.00 25.00 31.12 1.51

Unsecured Loans

Sub debt from S W R 140.79 140.79 140.79 140.79

Deferred Indirect Over Heads of SWR

4.14 15.51 26.90 36.01

Rs. - Crores

Section Staff Position in HMRDCS.No

Department No of Staff as per Agree

No. of Staff on Roll

1 Mechanical (SKLR-SBHR) 68 59

2 Electrical (TLD) 23 9

3 Traffic (SKLR-BNTL) 91 84

4 S&T (SKLR-BNTL) 59 33

5 SE/P-Way (HAS-SKLR) at HAS 66

6 SE/P-Way (SKLR-SBHR) at SKLR 117

7 ADEN (SKLR) 390 5

8 BRI (SKLR) 9

9 SE/Works (SKLR) at SKLR 22

10 SE/P-Way (KBPR) 117

11 Accounts 3 3

Total 634 524

29

Works carried out by Mysore Division & CAO/CN/BNC

04/19/23 30

Sl. No.

Name of work No. of Agreements

Total Agreement Value (Rs.)

Expenditure till date (Rs.)

Percentage of work

completed

1 Safety Works /Protective Works

8 14.88 13.46 90%

2 Operational Works / Traffic Facility Works

2 23.12 - -

3 Maintenance Works

11 8.65 2.85 30%

4 Works proposed by Mysore Division & Under Scrutiny

8 60.70 - -

Rs. -Crores

04/19/23 31

THIS ‘TERMS OF REFERENCE’ (TOR) OUTLINES THE OBJECTIVES, METHODOLOGY AND COSTS ASSOCIATED WITH OPERATIONAL IMPROVEMENTS ASSESSMENT (OIA).

OBJECTIVES :

A) TO DOCUMENT THE MARKET POTENTIAL (BOTH MEDIUM TERM & LONG TERM) OF TRAFFIC.

B) TO CONDUCT A SWOT ANALYSIS AND SUGGEST WAYS AND MEANS OF RETENTION/ENHANCEMENT OF EXISTING TRAFFIC WITH SPECIFIC STRESS ON CAPTURING ROAD TRAFFIC.

C) THE LIKELY IMPACT OF THE FUTURE PROJECTS PROPOSED BY GOK SUCH AS HUBLI-ANKOLA NEW BROAD GAUGE LINE, TALAGUPPA-HONNAVAR BROAD GAUGE LINE, HOSPET-VASCO DOUBLING BEING EXECUTED BY RVNL TO BE QUANTIFIED ON REALISTIC TERMS.

D) TO SUGGEST WAYS TO OVERCOME SHORT TERM CONSTRAINTS FACED BY CLIENTS LIKE SHORTAGE OF BOX-N WAGONS AND LOCOS SO AS TO APPROACH RAILWAY BOARD FOR REDRESSAL OF GRIEVANCES.

E) TO EXPLORE WAYS FOR REDUCING RUNNING TIME IN THE CRITICAL SECTION LIKE INCREASING PERMISSIBLE SPEED, AUGMENTATION OF LINE CAPACITY WITH FINANCIAL IMPLICATIONS.

F)TO ACHIEVE PROFIT OPTIMIZATION.

G) TO IDENTITY APPROPRIATE MEASURES TO AVOID, REMEDY OR MITIGATE, WHERE PRACTICAL, ANY ADVERSE EFFECTS OF THE PROPOSED ACTIVITY ON ENVIRONMENTAL/CULTURAL VALUES.

H) TO REVIEW RAILWAY BOARD’S POLICY ON R3I AND SUGGEST FOR IMPROVEMENTS.

I) TO EVALUATE THE NEED BASED REQUIREMENT OF CONDUCTING A TECHNO ECONOMIC FEASIBILITY THROUGH A PROFESSIONAL AGENCY LIKE RITES FOR DOUBLING OF LINE. THE SECOND LINE WILL BE AN INDEPENDENT LINE REQUIRING ENVIRONMENTAL & MOEF CLEARANCE.

Pending Issues with RailwaysS.No

Particulars Target Date

Action Required At

1 Finalization of Project cost by CN/BNC 31.03.10 CAO/CN/BNC

2 Finalization of Project cost by DRM/MYS for pending works as per MoU

31.03.10 DRM/MYS

3 Acceptance of Survey Committee Recommendations

30.04.10 CCM/UBL

4 Methodology of Finalization of O&M costs for 2007-08 & 2008-09

31.05.10 CCM/UBL FA& CAO/UBL

5 Settlement of Residual Claim for

2006-07

2007-08

2008-09

HY 2009-10

28.02.10

31.03.10

30.06.10

30.06.10

Sr.AFA/T/SBC

Sr.DFM/MYS

32

INSURANCEPROJECT LENGTH COVERED : 97 Kms out of 183 Kms from (SKLR to KBPR)

ASSETS INSURED : Permanent way, Station Buildings, Signaling, and Telecom, Mechanical & Electrical Equipments

RISKS COVERED : Force Majeure occurrence such as fire, root, flood, breaches, lightning, earthquake and other natural disaster – mainly on account of landslides/ rockslides during monsoon.

LOSSES COVERED : I) Restoration cost of tracks and assets damaged

ii) Loss of Profit/ Revenue on account of stoppage of operation on account of Force majeure events.

POLICY PERIOD : 4th January 2010 to 3rd January 2011

PREMIUM PAID : 2008 Rs. 33.60 Lakhs 2009 Rs. 40.08 Lakhs

2010 Rs. 69.53 Lakhs

CLAIMS SETTELED : 2008 : Restoration Cost : Rs. 61 Lakhs

Loss of Profit : Rs. 1.83 Crores (Under Process)

2009 : Restoration Cost : Rs. 97 Lakhs Loss of profit : Rs. 4.33 Crores Under Process

33

Income Tax Holiday and Payment of MAT INCOME TAX HOLIDAY :

Nature of exemption : Eligibility U/s 80IA being Infrastructure facility

Quantum of Exemption : 100% of Profit/ Income of the Company

Period of Exemption : For 10 Consecutive years from the Initial year

Exemption Availed : From FY 2007-08

Exemption Available upto : FY 2016 – 17

PAYMENT OF MAT :

The Company is required to Pay minimum Alternative Tax (MAN) on Book Profits U/s 115JB of Income Tax Act.

The Book Profit and MAT paid are :

FIN YEAR Book Profit Rate% including Surcharge Rs. In Crores Amt and Education Cess of MAT Paid

2007-08 34.12 11.33 (10%+10%+3%) 3.88

2008-09 87.79 11.33 9.95

2009-10(Prov) 52.96 16.95 (15%+10%+3%) 9.0034