PROFILE

1

Board of Directors

Mrs. Vandita Sharma IAS

Principal Secretary to GoK – IDD Chairman

Mr. M N Vidyashankar IAS Principal Secretary to GoK – C&I Director

Mr. Niraj Kumar IRTS

Executive Director Perspective Planning Railway Board

Director

Mr. N C Sinha IRTS

Chief Operations Manager, S W Rly Director

Mr. Rajkumar Lal IRTS Divisional Rly Manager, Mysore Director

Dr. P Tamilvanan Chairman New Mangalore Port Trust Director

Mr. Anil. B. Shenoy CFO & Company Secretary, Infrastructure Dev Co. Karnataka Ltd

Director

Mr. Ashwin Paul Head Commercial, MEL Director

Mr. S Gagarin From Railways CEO2

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

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

The Beginning

3

Project ImplementationProject ImplementationThe gauge conversion of the line has been completed under a set of agreements signed by the Company with the Ministry of 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 under section 80-IA of the Income Tax Act for 10 years from COD.

4

Framework of operation of SPV

Key features of the framework are:

• Cost of construction financed by HMRDC • Line capacity to be used primarily for goods services• Assured passenger services to the extent operated on the meter gauge.• Running & operating costs of passenger services to be borne by Railways• Cost of freight operations and maintenance of the line to be met by HMRDC.• Revenues to Company to accrue from freight only• Revenues from passenger trains to accrue to IR

5

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

Paid up capital  `. 112 Cr.

The shareholding pattern is as follows

  Government of Karnataka    `.28 Cr

Mysore Sales International Ltd. `. 7 Cr 40%

Vishveshwarya Ind Trade Center `. 10 Cr    

  Ministry of Railways  `. 45 Cr 40%

   New Mangalore Port Trust    `. 10 Cr 9%

  Mineral Enterprises Limited `. 10 Cr 9%

  K-RIDE `. 2 Cr 2%6

O & M Agreement

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

Construction Agreement

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

7

Project FinancingInitial Project Cost `. 293 cr

Construction Cost `. 275 cr

RMV Equipment `. 4 cr

Pre-operative exp & IDC `. 14 cr

Revised Project Cost `. 367 cr

Construction Cost `. 349 cr

RMV Equipment `. 4 cr

Pre-operative exp & IDC `. 14 cr

Funding through

Subordinate debt from IR `. 141 cr

Equity `. 112 cr

Term loans from banks `. 90 cr

Revised construction cost is under examination for mutual acceptance.8

Concession Agreement

Under the Concession Agreement, the Ministry of Railways has

granted HMRDC a concession for 32 years during which the company would convert the MG line between Hassan and Mangalore into a BG line and thereafter undertake its operation and maintenance during the concession period. 

To enable construction of the new line, the existing assets including land, station buildings, formation, bridges etc. (assets forming part of the rail network and necessary for gauge conversion) have been leased to the company.

9

Construction of the line

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

The 183 Km long MG line from Hassan to Kankanadi has been converted to BG.

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

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

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

10

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

100% inflation of distance is allowed for the Ghat section of 55Km between SKLR-SBHR, thus making chargeable distance to 238.45Km from the actual distance of 183.45KM between HAS-MAQ (Rate circular No. 32 of 2006)

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

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

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

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

Apportioned freight minus the O&M costs constitutes HMRDC’s share of revenue. 11

Traffic ForecastThe Hassan Mangalore line is expected to carry up to seven million tonnes of freight per annum that includes

Towards Mangalore Area:

Export iron ore to Port from Chitradurga – Tumkur and Hospet –Bellary sectors. Presently Banned in Karnataka.

Iron ore for KIOCL pellet plant at Mangalore – Presently Banned in Karnataka

Cement, Food grains and other general goods to Mangalore/ South Kerala area

From Mangalore Area:

Coal

Fertilizer imports

Limestone, Iron Ore Pellet – Presently not moving from Last 2 years.

Fertilizer from MCF Mangalore, Ernakulam Kerala area, Trombay Bombay area .

Food Grains from North India to Karnataka and Kerala.

POL and LPG from Mangalore Refinery, Thokkur to Bangalore. 12

Salient Physical Features of Hassan - Mangalore Section

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

13

    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.

14

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 Yedakumeri - Proposed

8. Slip Sidings   Donigal, Shrivagulu

15

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 Subramanya 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 2.9916

Line Capacity

The maximum number of trains that can be run in a day is Line Capacity which is decided by the time required to complete the journey by the slowest moving train in a critical block section.

The maximum permissible speed for all trains in the section between SBHR-SKLR is 30 KMPH

The Critical Block Section of HMRDC Line is DOGL-SBHR in the ghat section of SKLR-SBHR section, with the distance 47.70 KM the running time for DOGL-SBHR section is 95 minutes (47.7/30*60)

All the down trains are required to stop and start at reception signal to check the brake power

There are three stations, each requires 2 mins i.e total 6 mins Total time required for the journey is 100 min (95+5 min) (since Up Trains not required to stop) The total number of trains that can be run (Line capacity) =14.40*30=432 trains (1440/100) Total number of passenger trains in a month that are running in the section is 85 i.e 1 daily train and 3 days

a week [60+((6/7)*30=25)]=85

Total number of paths available in a month for all other services is 347 (432-85) i.s 11.57/day

Time required for maintenance works is provided to the extent of 1 train paths (100Mins) Total number of paths available for goods train/ MT/LE/CLE in a day 10.57

Total number of paths available for goods train/ MT/LE/CLE in a month 317 (10.57*30)

Total Trains per year=317*12=3804

Empty Train/CLE/LE/MT movement around 35% i.e 1331

Balance is considered as loaded trains i.e 65% of the capacity utilization i.e 3804-1331=2473 per year

Running of loaded trains is 65% of the capacity i.e 206 trains (2473/12) in a month.

Average load per train is 2950T

Total traffic that can be handled per annum 2473*2950=7.30MT on HMRDC Section

17

Operational Performance

18

Particulars 2006-07 (05/06-

03/07)

2007-08 2008-09 2009-10

2010-11 2011-12 2012-13 Prov 2013-14

Carried Tonnage (MT)

1.60 4.60 4.51 5.01 3.87 3.27 4.40 172.45

Earnings 36.71 133.54 188.19 163.63 116.63 71.35 115.21 136.56

O&M costs 17.68 66.72 74.49 91.01 76.14 67.05 83.94 35.89

Income from Operations

19.03 66.82 113.70 72.62 40.49 4.30 31.27 28.49

Deferred OH 4.14 11.37 11.39 12.36 10.15 8.98 11.17 2.54

`. - Crores

Commodity wise Earnings (I)

19

Commodity

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 ExportDomesticPellets

Total

0.810.020.00

0.83

21.680.550.00

22.23

59%2%---

61%

2.810.210.00

3.02

95.016.640.00

101.65

70%5%---

76%

2.450.050.00

2.50

146.761.190.00

146.88

78%1%---

78%

1.780.160.06

2.00

94.814.13

1.47

100.41

58%3%1%

61%

Limestone 0.14 3.26 9% 0.61 14.25 10% 0.34 8.08 4% 0.74 16.82 10%

Cement 0.01 0.24 1% 0.14 2.82 2% 0.35 7.48 4% 0.31 6.48 4%

Coal 0.15 2.55 7% 0.09 1.60 1% 0.35 6.85 4% 0.87 17.59 11%

F Grains/ Fertilizer

0.35 5.35 14% 0.49 8.28 7% 0.76 12.78 7% 0.81 13.81 8%

LPG/POL 0.12 2.94 8% 0.26 7.05 5% 0.21 6.08 3% 0.29 8.48 5%

Gypsum/ Others

0.00 0.00 --- 0.00 0.00 --- 0.00 0.00 --- 0.00 0.00 ---

`. - Crores

Commodity wise Earnings (II)

19-A

Commodity

2010-11 2011-12 2012-13

Carr Tonn (MT)

Reve % to tot Rev

Carr Tonn (MT)

Reve % to tot Rev

Carr Tonn (MT)

Reve % to tot Rev

Iron Ore ExportDomesticPellets

Total

0.441.240.00

1.68

39.8630.97

0.00

70.83

34% 27%

---

61%

0.000.430.00

0.43

0.0010.89

0.00

10.89

0%15%

0%

15%

0.000.000.00

0.00

0.000.000.00

0.00

0%0%0%

0%

Limestone 0.20 4.52 4% 0.00 0.00 0% 0.00 0.00 0%

Cement 0.56 11.18 10% 0.70 15.56 22% 1.00 27.65 24%

Coal 0.29 5.47 5% 0.69 15.49 22% 2.06 54.01 47%

F Grains/ Fertilizer

0.76 11.81 10% 0.99 16.17 23% 0.89 18.81 16%

LPG/POL 0.36 12.23 11% 0.36 10.93 15% 0.31 11.09 10%

Gypsum 0.00 0.00 0% 0.09 1.98 3% 0.13 3.50 3%

Others 0.02 0.58 1% 0.006 0.19 0.3% 0.007 0.15 0.1%

`. - Crores

Stock wise/Train Load Earnings 2012-13

20

Type of Wagon/

Commodity

Total No of Trains

Total Load (Million T)

Total Revenue

(Cr)

Load per Train

(Tonnes)

Revenue per Train

(In Lakhs)

BOXN –

Iron Ore

Gypsum

Coal

33

531

0.13

2.06

3.50

54.01

3885

3874

10.60

10.17

BCN –

Cement

* Fert/ Food Gr

427

361

1.00

0.76

27.65

18.81

2347

2470

6.48

5.21

BTPG - LPG

172 0.20 6.84 1175 3.98

BTPN - POL

46 0.11 4.25 2380 9.24

BLC/BFKN –

Cont 9 0.07 0.15 736 1.67

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

Detailed Note on Components of Fixed Cost

22

Fixed costs: Manpower costs : The actual salary paid to the staff deployed on the section except crew.

Other than Manpower cost : The cost of material/ stores required to keep the line fit for operations including contractors agreement entered for the same.

Direct supervision charges : The cost not covered in the Manpower cost directly.

Indirect Overheads : The costs which cannot be allocated to any known heads such as Medical, RPF, Pension etc. and paid on a percentage basis as per Yearly Summary of End Results published by Railway Board. This charge is deferred for ten years from the date of CoD.

Misc. : E-460 Special Repair Breaches on actuals and B-700 Special Repair Accidents calculated on prorata GTKM basis.

Details of Man Power Cost since April 2009 Till February 2013

Month 2009-10Jan DA –

22%July DA –

27%

2010-11Jan DA–

35% July DA–

45%

2011-12Jan DA–

51%July DA –

58%

2012-13Jan DA-65%

July DA –72%

2013-14Jan DA-80%

Jul DA –90%

April 10553739 9581507 9929011 14202767 12213188

May 9431754 12604767 10053035 11031619 14633401

June 9503927 9858103 10068343 12699354 13286896

July 10132773 9438760 10807203 12438985 13472022

August 10242977 9623818 10636542 12138316 12927592

September

2496554 11393221 10463819 13370726 13198579

October 13039045 13847313 15024185 17014145 19613678

November 9401686 10062511 10760052 12301803 13384667

December 9458187 10372341 9557215 12445277 13401654

January 10124412 9721654 9138056 12050854 13267007

February 9404661 9633881 9273294 12079431 13478825

March 8550873 9587059 8809085 12395221

Total 134808588 125724935

124519840 154168498 152877509

23

Note on Manpower Cost

24

2009-10 Revised pay scales implemented and also 40% of the arrears w.e.f. 01.01.006 was released.

Rates of National Holiday, OT, Night Duty allowance etc also increased due to Pay Commission.

2010-11 60% of the PC arrears was released.

Though increase in DA is announced in January and June but the amount is released in April and September respectively.

Bonus is released in October.

Annual increment is in July.

Staff strength in Engineering Department has been increased by 109 in June’12 hence total strength in the section as on 31.06.2013 is 591 which is less by 64 with the agreement.

S.No Name of the

Department

Staff as per

Agreement

As per Actual May 2012

Effective Strength

from June’12

Actual Strengt

h June’12

Strength as on June’13

1 S&T 59 51 51 52

2 Accounts 3 3 3 3

3 Mechanical 68 58 58 59

4 Engineering 390 263 109 372 357

5 Electrical 23 7 7 15

6 Operating 112 99 99 105

Total 655 481 109 590 591

Detailed Note on Components of Variable Cost

25

  Variable Cost 1)Cost of fuel : (GTKM/1000)x(SFC)x(Rate per litre)

2)Cost of crew : GTKM basis (expenses of (MYS div/GTKM of MYS div) x (SPV GTKM)

3)Loco and wagon usage : (Time spent by locos in hrs and wagons in days) x (respective rates notified by RB from time to time)

4)Running repairs of wagons : Pro-rata basis of (Total zonal expenses of Running Repairs)x (SPV Wagon days)/(Zonal Wagon Days)

5)Documentation : Stationery cost

6)Compensation claims: claim settlement and prevention organization (K210) and other claims under K230, K240 and K260

7)Indirect Overhead : The costs which cannot be allocated to any known heads such as Medical, RPF, Pension etc. and paid on a percentage basis as per Yearly Summary of End Results published by Railway Board. This charge is deferred for ten years from the date of Commercial operations. i.e. 05/05/2006.

NOTE:GTKM – Gross Tonne Kilometer [Gross Load of the Train (both Load+Empty)

+Loco Weight]

Review of O&M Costs

26

Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Carried Tonnage (MT)

1.60 4.60 4.50 5.01 3.87 3.27 4.40

Fixed Costs (FC – `.- Cr)

9.96 13.50 15.83 25.05 25.13 23.99 26.02

FC/Tonne (`.)

62.30 29.35 35.18 50.00 64.94 73.36 59.14

FC/Tonne/Km (`.)

0.34 0.16 0.19 0.27 0.35 0.40 0.32

Variable Cost (VC – `. - Cr)

7.72 53.22 58.65 66.06 51.00 43.05 57.92

VC/Tonne (`.)

48.30 115.70 130.33 131.86 131.78 131.65 131.64

VC/Tonne/Km (`.)

0.26 0.63 0.71 0.72 0.72 0.72 0.72

Income and Expenditure

27

Income:

Particulars 06-07 07-08 08-09 09-10 10-11 11-12 12-13

From Freight Operations

36.68 133.76 190.32 156.20 116.70 71.12 115.19

Others 0.11 2.61 9.80 11.46 17.20 18.87 19.70

Total 36.79 136.37 200.12 167.66 133.90 89.99 134.89

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

49.89

2.63

8.76

2.23

17.53

56.33

2.63

9.73

4.89

16.61

43.49

2.63

7.52

5.64

16.50

36.62

2.63

6.33

4.85

19.47

49.38

2.63

8.54

3.92

Expenses: Administration 0.32 0.61 1.02 1.27 2.32 1.78 1.76

Office Financial Expenses 4.14 6.14 7.10 1.74 0.01 0.05 0.00

Depreciation 25.65 28.78 29.74 30.23 31.83 34.01 34.52

Total 51.07 102.24 112.34 124.35 110.06 102.77 120.22

P B I T (14.28) 34.13 87.79 43.31 23.84 (12.78) 14.67

Tax Paid --- 3.89 9.74 7.30 4.81 0.00 6.39

P A T (14.28) 30.24 77.64 35.89 19.02 (12.78) 8.28

`. - Crores

EarningsParticulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Tonnage (Million Tonne) 1.60 4.60 4.51 5.01 3.87 3.27 4.40

Gross Earnings (`. Crores) 36.71 133.54 188.19 163.63 116.63 71.35 115.21

Gross Earnings/Ton/ KM (`.)

1.25 1.58 2.27 1.78 1.64 1.19 1.43

O&M Cost (`. Crores) 17.68 66.72 74.49 91.01 76.14 67.05 83.94

O&M Cost/Ton/ Km- (`.) 0.60 0.79 0.90 0.99 1.07 1.12 1.04

Net Earnings (`. Crores) 19.03 66.82 113.70 72.62 40.49 4.30 31.27

Net Earnings/Ton/ Km (`.) 0.65 0.79 1.37 0.79 0.57 0.01 0.39

Profit/ Loss (`. Crores) (Inc. of all Expenses)

(14.28) 30.24 77.64 35.89 18.79 (12.78) 8.28

Profit/Loss/ Ton/ Km (`.) (0.49) 0.36 0.94 0.39 0.26 (0.21) 0.10

28

Performance of the Company

29

Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Total Income 36.79 136.37 200.13 167.66 133.90 89.99 134.89

Total Expenses

51.07 102.24 112.34 124.35 110.06 102.77 120.20

P B I T (14.28) 34.13 87.79 43.31 23.84 (12.78) 14.69

P A T (14.28) 30.24 77.64 35.89 19.02 (12.78) 8.28

E P S (Rs.) (1.28) 2.70 6.93 3.20 2.14 (1.13) 0.74

` - Crores

30

Fixed Assets

31

Particulars

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

GAV NAV GAV NAV GAV NAV 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 33.86 31.41 58.56 55.26 62.66 58.39

Formation

69.99 63.41 69.47 55.70 74.22 52.78 74.79 45.58 87.29 49.07 91.14 43.60 91.08 34.11

P Way 188.70

171.09

189.51

152.51

192.23

135.54

193.04

116.44

193.50

96.92 205.42

87.75 206.98

67.98

Station & Building

9.66 8.80 10.10 9.07 10.38 9.19 10.57 9.21 10.67 9.13 12.61 10.86 12.61 10.66

Plant & Machinery

15.96 15.73 14.98 13.22 17.24 13.82 18.62 13.37 21.10 13.76 24.40 14.58 25.18 12.78

Total 311.20

285.56

315.08

260.69

327.02

242.91

330.47

216.14

346.42

200.29

392.13

212.04

398.51

183.93

Office 0.23 0.21 0.23 0.19 0.25 0.19 0.26 0.19 0.36 0.26 0.41 0.26 0.41 0.23

G Total 311.42

285.77

315.32

260.88

327.27

243.10

330.74

216.34

346.78

200.55

392.54

212.30

398.92

184.16

`- Crores

GAV – Gross Asset Value NAV – Net Asset Value

Capital Structure

32

Particulars 2006-07

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Share Capital

Paid Up 112.00 112.00 112.00 112.00 112.00 112.00 112.00

Reserve & Surplus (Cumulative)

--- 15.95 93.60 129.49 148.51 134.86 143.13

Secured Loans

Canara Bank 45.00 45.00 48.90 1.08 0.00 0.00 0.00

SBH 25.00 25.00 31.12 1.10 0.00 0.00 0.00

Unsecured Loans

Sub debt from S W R 140.79 140.79 140.79 140.79 126.79 99.79 78.78

Deferred Indirect Over Heads of SWR

4.14 15.51 26.90 39.25 49.41 58.37 69.54

` - Crores

Section Staff Position in HMRDCS.No Department No of

Staff as per Agmt

No. of Staff on

Roll

New Staff Recruited in Engg

(June’12)

No of staff on Roll as

per SWR

No of staff on Roll as

per SWR

As on 31.06.13

1 Mechanical (SKLR-SBHR) 68 58 58 59

2 Electrical (TLD) 23 7 7 15

3 Traffic (SKLR-BNTL) 91

21

112 99 99 105

4 S&T (SKLR-BNTL) 59 51 51 52

5 SE/P-Way (HAS-SKLR) at HAS 47 31 78 71

6 SE/P-Way (SKLR-SBHR) at SKLR 95 32 127 124

7 ADEN (SKLR) 390 3 3 2

8 BRI (SKLR) 7 7 6

9 SE/Works (SKLR) at SKLR 18 18 14

10 SE/P-Way (KBPR) 93 46 139 140

11 Accounts 3 3 3 3

Total 655 481 109 590 591

SWR has recruited New Staff for Engg in the month of May 2012 and effective from June 2012 33

Information and Communication Technology (ICT)

34

The Company has implemented need based ICT.

For Accounts, Tally software is used.

For Commercial & Operational transaction, FOIS & an in house developed program (backend/data base in MYSQL and Frontend in Dot Net) “FAITH” Freight Accounting Information Tool of HMRDC is in place.

The website of the Company is a dynamic one and all relevant information are made available therein.

Regular back-up of data is done in an external Hard Drive Disk.

All the Personal Computers are connected through LAN (Local Area Network) and antivirus software loaded.

INSURANCE

PROJECT 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 : 13th January 2014 to 12th January 2015PREMIUM PAID : 2008 ` 33.60 Lakhs

2009 ` 40.08 Lakhs

2010 ` 69.53 Lakhs

2011 ` 93.75 Lakhs

2012 ` 58.62 Lakhs 2013 ` 84.59 Lakhs

CLAIMS SETTLED : 2008 :

Restoration Cost : ` 61 Lakhs Loss of Profit : ` 163 Lakhs (Received on 28.07.10)

2009 :

Restoration Cost : ` 30.16 Lakhs

Loss of profit : ` 245.76 Lakhs (Received on 31.03.11)

Company has put up the Claim for Rs. 1.01 Cr for the year 2012-13 to the National Insurance Company as their were Landslides in the months of July’12 and August’12 .

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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 (MAT) on Book Profits u/s 115JB of Income Tax Act.

The Book Profit and MAT/Income Tax paid are :

FIN YEAR Book Profit Rate% including Surcharge ` In Crores Amt of and Education Cess MAT/Income Tax Paid

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

2008-09 87.79 11.33 (10%+10%+3%) 9.95

2009-10 43.31 16.995 (15%+10%+3%) 7.36

2010-11 23.83 19.93 (18%+7.5%+3%) 4.81

2011-12 (12.78) 20.01 (18.5%+5%+3%) 0.00

2012-13 14.67 32.445 (30%+5%+3%) 6.3936

Looking to Future

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SWOT Analysis :

Strengths :

The Only Railway Line passing through Western Ghats connecting the major port of Karnataka with Hinterland. Has got Line Capacity to transport 7 Million Tonnes of Traffic per annum. Stabilized Rail Link.Entire Loan of `. 90 Cr. availed from Nationalized Banks Completely Amortized within 3 years of CoD

Looking to Future

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Weaknesses :

Dependence on a single Commodity (Iron-Ore/Export) which is the Cash Cow. Oligopolistic customers. Capacity and Operational constraints due to steep gradient ( 1 in 50) and more number of 8 degree Curves. •Multiple locos with AEBs used for hauling up Trains• Empty running of Locos and Rakes• Speed restrictions – 30 KMPH in Ghat Section.•Detention due to a variety of reasons. Outstanding sub-debt (`78.78 Cr) and deferred OH (`69.54 Cr) along with interest, if any. The Cash Reserves of ` 198 Cr represent only DRF.

Looking to Future

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Opportunities :

Steady Traffic with KIOCL expansion plans (Iron Ore Domestic)Iron-Ore for Export market may commence upon lifting the ban.Import of high grade non-coking Coal for proposed Steel Plants and Coal for Power Plants, which will be moved from NMPT through Hassan Mangalore Rail Line. Diversification into development of Property Time Shares (with the Land available) for heritage Tours and Trek to boost non-traditional income.Going for “Doubling” of the Line, avoiding Ghat Section (118 Kms as against 55Kms of Ghat Section) with minimum impact on Environment.

Looking to Future

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Threats :

Higher Expenditure on Maintenance costs for retaining walls etc to

prevent landslides.Huge Capital Expenditure for strengthening of bridges to permit running of 25T Axle Load Trains.Dwindling traffic movements.Premature replacement of Assets due to denudation.

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