IRCON Annual Report - 29-JAN-16 - FINAL - 123
IRCON Annual Report - 29-JAN-16 - FINAL - 123
Page
Main Bankers
Indian Overseas Bank
State Bank of India
HDFC Bank
Mohan Tiwari
Awards
Your Company has received following awards during
the year: Scope Commendation Certificate for CSR & Responsiveness
1. Asia Pacific HRM Congress Award 2014 for 4. National Award for Excellence in Cost Management
‘Organisation with innovative HR Practices’. The award – 2013 instituted by Institute of Cost Accountants of
was received by Mr. H.D. Doddaiah, Addl. General India for ‘Excellence in Cost Management – Public
Manager (Southern Region), Ircon, at a function held Service Sector (Large)’. The award was presented by
in Bengaluru on 11th September 2014. Mr. Jayant Sinha, Minister of State for Finance, to
Mr. Mohan Tiwari, Chairman & Managing Director,
2. Dun and Bradstreet Infra Awards 2014, in the category
Ircon, at a function held in New Delhi on 25th
of ‘Construction and Infrastructure Development
November 2014.
(Railways)’. The award was received by Mr. Mohan
Tiwari, Chairman & Managing Director, Ircon, at a
function held in Mumbai on 30th October 2014.
3. SCOPE Meritorious Award under the category of 5. Vishwakarma Award 2015 from Construction Industry
‘Corporate Social Responsibility & Responsiveness’ for Development Council (CIDC) in the category of best
the year 2012-13. The Commendation certificate was professionally managed company with a turnover of
received by Mr. Mohan Tiwari, Chairman & Managing more than `1,000 crore. The award was presented
Director, Ircon, from Mr. Anant Geete, Union Minister by Mr. Satyendra Jain, Minister of Health, Power and
of Heavy Industries & Public Enterprise, Government Public Works Department, Government of NCT of
1. A brief outline of the Company’s CSR Policy, addition, the Company has also contributed to relief fund
including overview of projects or programs established by Government to mitigate the sufferings of
undertaken and its web-link: people affected by natural calamities in the State of Jammu
Your Company is committed to its stakeholders to conduct & Kashmir. To achieve the objective of Clean India (Swachh
business in an economically, socially, and environmentally Bharat) through promotion of sanitation, the Company
sustainable manner, that is transparent and ethical. has also contributed an amount of ` 1.87 crore to Swachh
Bharat Kosh.
The Company is having a policy on CSR and Sustainability
since 2011. The said CSR and Sustainability Policy has been The CSR and Sustainability Policy of the Company, along
revised in April 2014 and January 2015 with approval of with the projects / activities as approved by the Board of
the Board of Directors in line with the requirements of Directors is available at the web-link -- http://www.ircon.
the Companies Act, 2013, and DPE Guidelines, 2014, on org/content.aspx?Title=178.
the subject.
2. Composition of CSR Committee:
The object of the CSR and Sustainability Policy is to focus Presently your Company has a three-tier structure
on activities having social, economic and environmental comprising Board level Committee; Nodal officer and his
impact, rather than mere output or outcomes. team; and project level CSR implementation committee;
The policy also provides for selection of CSR projects for undertaking the CSR and Sustainability activities /
generally around project sites to provide an opportunity projects.
to connect with the people, environment and other a) CSR and Sustainability Committee has been
stakeholders, who are affected by construction activities. constituted in terms of the Companies Act, 2013, and
The stakeholders directly impacted by business operations DPE CSR and Sustainability Guidelines, 2014.
of this company rightfully claim for attention before others.
Not only it makes easier to mobilize resources required for A brief background on the constitution of Committee,
execution of CSR projects, but it also offer an advantage of its mandate, along with details of meetings held
executing regular progress in implementation of planned during 2014-15 are given in para 7.4 of the Corporate
activities. Governance Report. Presently, the Committee is
headed by Mr. H. K. Kala, Part-time (Official) Director,
The thrust areas for CSR activities are capacity building, Addl. Member (Planning), Railway Board; with Mr. K. K.
empowerment of communities, inclusive socio-economic Garg, Director Finance; Mr. Deepak Sabhlok, Director
growth, environment protection, promotion of green and Projects; and Mr. Hitesh Khanna, Director Works; as its
energy efficient technologies, development of backward members.
regions, and upliftment of the marginalized and under-
b) The Committee is assisted by Mr. A. K. Goyal, Executive
privileged.
Director (Projects), Nodal Officer and his team.
The policy also provides for stakeholder engagement by The Nodal Officer and his team assists the Committee
involving State Government / Local Administration and in selection and approval of the CSR and Sustainability
Gram Sabhas at village level in rural areas, at the initial activities / projects; facilitates coordination of CSR and
stage of planning and selection of CSR activities. Sustainability initiatives; and submits the progress
During the financial year 2014-15, the Company has report of implementation of the activities to the CSR
undertaken CSR and Sustainability activities in the field and Sustainability Committee.
of health, education, rural infrastructure development, c) At each project of the Company, a project level CSR
environment (solar energy), sanitation and cleanliness, implementation committee is constituted headed
art and culture, and socio-economic development. In by project head and supported by two other senior
Sl. CSR Project or Sector in Projects or Amount outlay Amount Spent on Total Cumula- Amount
No. Activity identified which the Programs (Budget) Project the Projects or Expen- tive expen- Spent (Direct
Project is or Programs wise Programs during diture for diture or through
covered 2014-15 the year up to implementing
2014-15 2014-15 agency)
(1) Local area Total During (1) (2)
or other 2014-15
Direct Over-
(2) State and expen- heads
District where diture on
projects or projects
programs was or
undertaken programs
1 Drinking water Health (1) Local Area 40.00 35.00 21.33 21.33 26.33 Through M/s
treatment facility [S. No. (i) - SATHEE, an NGO
(2) West
for removal of of Schedule of West Bengal
Bengal,
arsenic VII]
Berhampore
2 Improving health Health (1) Local 25.40 16.87 17.76 - 17.76 26.22 Through Ircon
care infrastructure Infrastructure &
[S. No. (i) (2) J&K,
by construction of Services Limited
of Schedule Ramban
health post with
VII]
Porta Cabins (10Ft
x 12Ft), supply of
medical equipments
and construction of
sanitized toilets in
Banihal Division
3 Running and Health (1) Local Area 30.00 30.00 23.54 - 23.54 23.54 Direct
maintenance cost of [S. No. (i) (2) J&K,
the 3 existing health of Schedule Ramban;
units at Banihal, VII] UP, Raebareli;
Lalganj, Sivok $ and
West Bengal,
Sivok
5 Eye & Health Check Health (1) Local Area 5.00 1.65 0.83 0.83 0.83 Through
up camps for school - M/s Mahavir
children $ [S. No. (i) (2) New Delhi International
of Schedule (an NGO)
VII]
6 Drinking water Health (1) Local Area 9.00 9.00 8.94 8.94 8.94 Direct
supply to the village -
of Peerpora, Tethar- [S. No. (i) (2) J&K,
Banihal of Schedule Ramban
VII]
7 Providing one Health (1) Local Area 10.00 10.00 9.46 - 9.46 9.46 Direct
ambulance for state
health department [S. No. (i) (2) J&K,
at District Ramban of Schedule Ramban
VII]
8 Contribution to Sanitation Swachh 187.00 187.00 187.00 - 187.00 187.00 Direct
Swachh Bharat Kosh [S. No. (i) Bharat Kosh,
of Schedule Deptt. of
VII] Expenditure
(Ministry of
Finance)
9 Providing Education (1) Local Area 97.50 22.50 22.50 22.50 97.50 Through
infrastructure - Municipality of
works for Girls [S. No. (ii) (2) UP, Raebareli
Inter college under of Schedule Raebareli
municipality of VII]
Raebareli
10 Up gradation of Education (1) Local Area 20.00 15.00 13.77 13.77 18.77 Through MP
school and other - Laghu Udyog
facilities in village [S. No. (ii) (2) MP, Nigam Ltd.
Bhauri (Gwalior) $ of Schedule Gwalior
VII]
11 Up gradation of Education (1) Local Area 12.50 10.19 8.64 8.64 10.95 Direct
School Building -
at Inarwa-Kamala [S. No. (ii) (2) Nepal,
village* of Schedule Inarwa
VII]
12 Toilet block with Education (1) Local Area 57.20 27.13 21.18 21.18 51.25 Through Ircon
Porta Cabins, SDPE [S. No. (ii) - Infrastructure &
septic tanks, water of Schedule (2) J&K, Services Limited
storage tanks in VII] Ramban
Banihal Division (18
Schools)
13 Contribution for the Education (1) Local Area 2.36 2.36 2.36 2.36 2.36 Through M/s
education & Welfare - GODHULI, an
of the street [S. No. (ii) (2) New Delhi NGO
children in Godhuli of Schedule
Schools VII]
(*) The CSR activity is in continuation since 2013-14 i.e. before the Companies Act, 2013 was made applicable.
(#) Release of final payments for the CSR activities undertaken during the previous years for Providing solar lights in various villages of J&K,
Bihar and UP.
($) CSR activities / projects continuing in the year 2015-16 also.
*Mr. Mohan Tiwari, born on 1st October 1956, qualified as B.E. Civil (Hons.), M.Tech (Structures) and PGDIM, joined
Ircon on 25th June 1998 on deputation from Ministry of Railways and got absorbed in 2002 as General Manager. He
was a Director (Projects) from 8th August 2003 to 31st January 2009. He assumed tenure post as Managing Director on
1st February 2009, based on Presidential appointment conveyed through Ministry of Railways, for a period of 5 years or
up to the age of superannuation, whichever is earlier. He had been re-designated by the Ministry of Railways as Chairman
& Managing Director w.e.f. 5th March 2013. His tenure of appointment has been extended beyond 31st January 2014 till
30th September 2016, i.e. the date of his superannuation, vide order dated 15th May 2014 by Ministry of Railways. He
has over 36 years of experience in infrastructure sector.
After the close of the year, Board of directors of Ircon, 7.4 CSR and Sustainability Committee
at its meeting held on 28th July 2015, had dissolved the An integrated Board Committee for CSR and Sustainable
Shareholders’ / Investors’ Grievance Committee in view of Development (CSR-SD Committee) had been constituted
the provisions contained in section 178 of the Companies in April 2013, in terms of DPE CSR and Sustainability
Act, 2013. After dissolution of the said Committee, the Guidelines, 2013.
Both these Policies are available on Ircon’s website. b) The Annual Report including the audited financial
statements for the year 2014-15 of Ircon and its
10.8 Question of denying access to any of the personnel
subsidiaries would be available on the website of the
to Audit Committee has not arisen so far.
Company.
10.9 The Company made no public issue of shares c) The following have also been displayed on the
nor issued any prospectus or letter of offer during Company’s website:
2014-15.
i) Shareholding pattern of the Company.
10.10 There has been no instance of non-compliance of any
ii) Important corporate governance policies like
statutory regulation or government guidelines nor
Fraud Prevention, Detection, and Control Policy;
there has been any penalties or strictures imposed
and Whistle Blower Policy along with confidential
on the Company on any matter related to the capital
e-mail-ids of nodal officers/ CMD/ Chairman, Audit
market and guidelines issued by government.
Committee.
10.11 The transactions with related party are in the
iii) CSR and Sustainability Policy and the CSR Activities
ordinary course of business on arms’ length basis
for 2014-15.
and the disclosure of the same has been made as
per requirement of relevant Accounting standard in iv) Code of Conduct for Board Members and Senior
notes to Financial Statement of the Company. Management and Key Values of the Company.
d) E - mail ID of the compliance officer exclusively for
10.12 DPE has awarded ‘Excellent’ grading to Ircon for
the purpose of registering complaints by investors
compliance of DPE Corporate Governance Guidelines
during 2013-14. has been displayed on the website under the head
“Investor Corner” for creating investor awareness.
10.13 Ircon has secured, based on self-evaluation, an
annual score of ‘91.25’ out of 100 which falls under 12.2 Annual General Meeting of the Current Year
‘Excellent’ grade for compliance of DPE Corporate Date : 22nd December, 2015
Governance Guidelines for the year 2014-15.
Time : 17.00 Hours
10.14 The Company informs/ reports to the Board about
the compliances of laws in the areas -- Company and Venue : Board Room of the Company’s Registered
Related Laws; Tax Laws; Labour & Employee Welfare Office - C-4, District Centre, Saket,
Laws; RTI; from projects (Indian and Foreign); etc. New Delhi – 110 017
every six months.
12.3 Record Date for payment of Dividend
11. CEO / CFO Certification Dividend would be paid for the year 2014-15 to all such
The Chairman & Managing Director (CEO) and Director shareholders whose name appear in the Register of
Finance (CFO) have certified in writing with respect to Members as on the date of Annual General Meeting i.e.
the truth and fairness of the financial statements, due 22nd December, 2015, the record date.
Company Secretary,
Mohan Tiwari
Ircon International Limited, C-4, District Centre,
Chairman & Managing Director
Saket, New Delhi - 110 017
(DIN 00191363)
Telephone: 91-11-26545265 / 26530456;
Fax: 91-11-26522000 / 26854000
E-Mail: [email protected] Place : New Delhi
Website : www.ircon.org Date : 6th November 2015
I, Mohan Tiwari, Chairman & Managing Director, Ircon International Limited, do hereby declare that all the members of
the Board of Directors and the Senior Management Team of the Company have affirmed their compliance of the Code of
Conduct and Key Values of the Company during 2014-15.
Mohan Tiwari
Chairman & Managing Director
(DIN 00191363)
Annexure-C2
We have reviewed the Financial Statements [i.e. the Balance Sheet, Statement of Profit & Loss and Notes thereto] and
the Cash Flow Statement for the financial year 2014-15 and to the best of our knowledge and belief:
i) These statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
ii) These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations;
iii) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal, or violative of the Company’s code of conduct;
iv) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting. We
have disclosed to the auditors and the Audit Committee deficiencies in the design or operation of such internal
controls of which we are aware and the steps we have taken or propose to take to rectify these deficiencies;
v) We have indicated to Auditors and the Audit Committee changes in Accounting Policies during the year, and that the
same have been disclosed in the Notes to the Financial Statements; and
vi) There was no instance of fraud of which we are aware nor there has been involvement of the Management or an
employee having a significant role in the Company’s internal control system over financial reporting.
CERTIFICATE on COMPLIANCE
WITH THE CONDITIONS of CORPORATE GOVERNANCE
UNDER CORPORATE GOVERNANCE GUIDELINES of DPE
To
The Members of
Ircon International Limited
New Delhi
In respect of the compliance of the conditions of Corporate Governance for the year ended 31st March, 2015, by Ircon
International Limited, a Government Company under section 2(45) of the Companies Act, 2013, as required by the
Guidelines on Corporate Governance issued by the Department of Public Enterprises (DPE):
We have studied the Corporate Governance Report of the said Company as approved by its Board of Directors. We have
also examined the relevant records and documents maintained by the Company and furnished to us for our review in
this regard.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was
limited to a review of procedures and implementation thereof adopted by the Company for ensuring the compliance of
the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statement
of the Company.
We state that there has been no investor grievance during the year against the Company as per the records maintained
by the Company.
We further comment that such compliance is neither an assurance as to the future viability of the Company nor the
efficiency or effectiveness with which the Management has conducted the affairs of the Company.
In our opinion and to the best of our information and on the basis of our review and according to the information and
explanations given to us, we certify that the Company has complied with the mandatory requirements of Corporate
Governance in all material respects, in conformity with the requirements of the Guidelines on Corporate Governance
issued by the Department of Public Enterprises (DPE) in respect of corporate governance norms for a mini-ratna Public
Sector Company, except appointment of requisite number of Independent Directors (after conclusion of the tenure of
two independent directors on 15.09.2014 and 18.09.2014 respectively) and a Woman Director (during the year under
review) on the Board of the Company, which we understand is done by the Government.
MANOJ BANGIA
Place: NEW DELHI Proprietor
Dated: 06.11.2015 CP NO.3655
To,
The Members
IRCON INTERNATIONAL LIMITED
CIN : U45203DL1976GOI008171
Plot No. C-4, District Centre, Saket
New Delhi-110017
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices by IRCON INTERNATIONAL LIMITED (hereinafter called “The Company”). Secretarial Audit was
conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/ statutory compliances
and expressing our opinion thereon.
Based on our verification of the Company books, papers, minute books, forms and returns filed and other records
maintained by the Company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, we do hereby report that in our opinion, the Company has,
during the audit period covering the financial year ended on 31st March 2015, complied with the statutory provisions
listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the
extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by
IRCON INTERNATIONAL LIMITED (“The Company”) for the period ended on March 2015 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Investment and Management Act, 1999 and the rules and regulations made thereunder to the extent of
Foreign Direct Investment and Overseas Direct Investment and External Commercial Borrowings.
(v) The following Regulations and Guidelines prescribed under the Securities Exchange Board of India, Act, 1992, (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 /Securities and Exchange Board of India (Share Based Employee Benefits) Regulations,
2014 (effective 28th October 2014);
This report is to be read with our letter of even date which is annexed as “Annexure-A” and forms an integral part of
this report.
To,
The Members
IRCON INTERNATIONAL LIMITED
CIN : U45203DL1976GOI008171
Plot No. C-4, District Centre, Saket
New Delhi-110017
1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of secretarial records. The verification was done on test basis to ensure that correct facts are
reflected in secretarial records. We believe that the processes and practices we followed, provide a reasonable basis for
our opinion.
3. We have relied on report of Statutory Auditors, Tax auditors, Cost Auditors and C & AG Auditors for compliances
of the applicable Financial Laws including Direct and Indirect Tax Laws, Accounting Standards, the correctness and
appropriateness of Financial Records, Cost Records and Books of Accounts of the company since the same have been
subject to review by respective Auditors and other designated professionals..
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules,
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.
Category of Shareholders No. of shares held at the beginning of the year No. of Shares held at the end of the year %
Demat Physical Total % of Demat Physical Total % of Total Change
Total Shares during
Shares the year
A. Promoters
(1) Indian
a) Individual/ HUF - - -
b) Central Govt 1,97,42,400 1,97,42,400 99.729 1,97,42,400 1,97,42,400 99.729 Nil
c) State Govt(s) - - -
d) Bodies Corp. - - -
e) Banks / FI - - -
f) Any Other - - -
Sub-total (A) (1) Not 1,97,42,400 1,97,42,400 99.729 Not 1,97,42,400 1,97,42,400 99.729 Nil
(2) Foreign Applica- Applica-
ble ble
a) NRIs - Individuals - - - -
b) Other- Individuals - - - -
c) Bodies Corp. - - - -
d) Banks / FI - - - -
e) Any Other - - - -
Sub-total (A) (2) - - - -
Total Shareholding 1,97,42,400 1,97,42,400 99.729 1,97,42,400 1,97,42,400 99.729 Nil
of Promoter
(A) = (A)(1)+(A)(2)
B. Public Shareholding
(1) Institutions
a) Mutual Funds - - - -
b) Banks/ FIs --
Bank - Bank of India 4,800 4,800 0.024 4,800 4,800 0.024 Nil
FIs - Indian Railway 48,800 48,800 0.247 48,800 48,800 0.247 Nil
Finance Corporation
Limited
c) Central Govt - - - -
Not Not
d) State Govt(s) - - - -
Applica- Applica-
e) Venture Capital ble - - ble - -
Funds
f) Insurance - - - -
Companies
g) FIIs - - - -
h) Foreign Venture - - - -
Capital Funds
i) Others (specify) - - - -
Sub-total (B)(1): 53,600 53,600 0.271 53,600 53,600 0.271 Nil
Note:
1 Shares of the Company are not dematerialized as 99.729% shares are held in the names of President of India and his nominees.
2 1,97,38,400 equity shares of ` 10/- each are held in the name of President of India, and 400 shares of ` 10/- each are held by each of the ten
nominees (who are Government Officials) of the President of India.
Note:
1 All the shares of Ircon are held by Central Government in the name of the President of India and his 10 nominees (99.729%), Indian
Railway Finance Corporation Limited (0.247%), and Bank of India (0.024%).
Note
Section 197 of the Companies Act, 2013, is exempt for government companies in terms of the Ministry of Corporate Affairs notification dated
5th June 2015.
* 400 shares each are held by President’s 10 (ten) nominees who are Government officials from the Ministry of Railways.
Sl. No. Name of the related Nature of Duration of Salient terms of contracts / Date of Amount paid
party and nature of contracts / contracts / arrangements / transactions, approval by as advances,
relationship arrangements / arrangements / including the value, if any the BoD, if any
transactions transactions if any
1 Ircon Infrastructure & Execution of MOU dated CSR Works relating to construction Not Applicable Nil
Services Limited Corporate Social 8th June 2012 of toilets at schools, solar lights,
(IrconISL) Responsibility Duration - etc.
Wholly owned works for Ircon. Continuing.
IrconISL is paid actual cost of
subsidiary company
work plus specified percentage
of contract addition towards
overheads and profit.
2 Ircon PB Tollway Execution of EPC Agreement The Contract has been awarded Not Applicable Nil
Limited Engineering dated 19th in line with the price quoted to
(IrconPBTL) Procurement January 2015 National Highways Authority
Wholly owned Construction Duration -- EPC of India (NHAI) for securing the
subsidiary company (EPC) Contract of work is 30 contract on competitive basis. The
Bikaner-Phalodi months from the project will be executed in terms
project for appointed date of the Concession Agreement
IrconPBTL. intimated by NHAI signed by IrconPBTL with NHAI.
or handing over of
land by IrconPBTL.
3 Chhattisgarh East Execution of Project Execution The contract is in terms of the Not Applicable Nil
Railway Limited East Corridor Agreement dated Concession Agreement signed by
(CERL) Rail project in 18th January 2014. CERL with South Eastern Railways.
A Joint Venture Chhattisgarh for Duration -- Till
Ircon would be paid actual cost
Company CERL. the Railway
of work plus specified percentage
corridor becomes
of contract addition towards
operational in
overheads and profit.
line with the
Concession
Agreement.
4 Chhattisgarh East- Execution of Project Execution The contract is in terms of the Not Applicable Nil
West Railway Limited East-West Agreement dated Concession Agreement signed
(CEWRL) Corridor Rail 5th April 2014. by CEWRL with South Eastern
A Joint Venture project in Duration -- Till Railways.
Company Chhattisgarh for the Railway
Ircon would be paid actual cost
CEWRL. corridor becomes
of work plus specified percentage
operational in
of contract addition towards
line with the
overheads and profit.
Concession
Agreement.
5 Ircon Infrastructure & a) Work for Letter of award The work has been awarded at Not Applicable Nil
Services Limited Detailed Design dated 20th March a total price of ` 32.06 lakhs.
(IrconISL) for bridges & 2015 to Ircon. The same has been awarded to
Wholly owned Supervision of Duration -- 6 Ircon at internal cost including
subsidiary company Geo – Technical months from date overheads and profits calculated
investigations of mobilization to and quoted by IrconISL in its bid
in Myanmar for site or 3 months submitted to Government of
IrconISL. from date of Myanmar.
providing all
relevant details for
design of bridges,
whichever is later.
Note:
1. Apart from above said transactions, other transactions, etc. entered with related parties are as follows:
(i) The Company has also deputed its employees to wholly owned subsidiary companies (viz. IrconISL, IrconPBTL, and IRSDC), joint venture
companies (viz. Ircon-Soma Tollway Private Limited (ISTPL)], and unincorporated joint ventures (viz. IRCON-AFONS JV). Deputation of
employees is on actual cost (CTC) basis.
(ii) Miscellaneous expenses such as advertisement cost, etc. incurred on behalf of subsidiaries IrconISL and IRSDC is reimbursed on actual basis.
(iii) Office space provided to the wholly owned subsidiary companies (viz. IrconISL, IrconPBTL, and Ircon Shivpuri Guna Tollway Limited) and
joint venture company (viz. ISTPL) is charged at the same rate as that of other tenants in the same building.
2. All the above said transactions has been approved by the Audit Committee of Ircon.
Mohan Tiwari
Chairman & Managing Director
(DIN 00191363)
Auditors’ Report
Para Management Replies
4 (a) The comments in the Auditors' Report inter-alia refer to Note 34 incorporated by the Company in the Accounts.
The Note is self-explanatory.
4 (b) Auditors’ opinion is in respect of agreements signed in the year 2007 & 2009 and ignores the factual position
as per documents provided to them. The payments pertain to 8 projects for the period from 2007-08 to
2014-15 and were as a fixed %age (within the limit as per RBI) of actual payments received by the Company.
Selection of these agencies & appointments were made by following the process laid down by the Company
and availing of agency services is as per guidelines & industry practices. These projects have also been
substantially completed. Entering into such agreements and release of payments do not require approval
of the Board or that of Audit Committee as per Company’s delegation of powers. All the payments were
made through banking channels only after receipt of payments by the Company & certification of satisfactory
services by the Project Heads.
Documents for legal compliances were also shown to the auditors. No specific non-compliance has been
reported by the auditors under Para 4(b) or Para 8 relating to ‘Report on Other Legal and Regulatory
Requirements’.
Further, as reported by the auditors in the “Matter of Emphasis” in the report on previous year’s financial
statements that the ‘Company has initiated steps to strengthen the policies, procedures and documentation
in this regard’, the Board of Directors of the Company has already approved comprehensive guidelines on the
matter.
The Company has conveyed Management’s view to the office of C&AG and requested them to examine
relevant documents and give their comments/ advice on the above qualification.
8 (f) The Company does not agree to the view that it will have any adverse effect on functioning of the Company.
Mohan Tiwari
Chairman & Managing Director
(DIN 00191363)
Place : New Delhi
Date : 6th November 2015
Auditors’ Report
Para Management Replies
4 (a) The comments in the Auditors’ Report inter-alia refer to Note 36 incorporated by the Company in the Accounts.
The Note is self explanatory.
4 (b) Auditors’ opinion is in respect of agreements signed in the year 2007 & 2009 and ignores the factual position
as per documents provided to them. The payments pertain to 8 projects for the period from 2007-08 to
2014-15 and were as a fixed %age (within the limit as per RBI) of actual payments received by the Company.
Selection of these agencies & appointments were made by following the process laid down by the Company
and availing of agency services is as per guidelines & industry practices. These projects have also been
substantially completed. Entering into such agreements and release of payments do not require approval
of the Board or that of Audit Committee as per Company’s delegation of powers. All the payments were
made through banking channels only after receipt of payments by the Company & certification of satisfactory
services by the Project Heads.
Documents for legal compliances were also shown to the auditors. No specific non compliance has been
reported by the auditors under Para 4(b) or Para 8 relating to ‘Report on Other Legal and Regulatory
Requirements’.
Further, as reported by the auditors in the “Matter of Emphasis” in the report on previous year’s financial
statements that the ‘Company has initiated steps to strengthen the policies, procedures and documentation
in this regard’, the Board of Directors of the Company has already approved comprehensive guidelines on the
matter.
The Company has conveyed Management’s view to the office of C&AG and requested them to examine
relevant documents and give their comments/ advice on the above qualification.
8 (f) The Company does not agree to the view that it will have any adverse effect on functioning of the Company.
Mohan Tiwari
Chairman & Managing Director
(DIN 00191363)
Place : New Delhi
Date : 6th November 2015
Notes
* 25 to 28 are in percentage
** 29,32 & 33 are not in crore rupees
Vinod Kumar & Associates T. R. Chadha & Co.
Chartered Accountants Chartered Accountants
909, Chiranjiv Tower, B-30, Connaught Place
43, Nehru Place, Kuthiala Building,
New Delhi-110019 New Delhi-110001
3. Auditors’ Responsibility
Our responsibility is to express an opinion on these standalone 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 thereunder.
We conducted our audit 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment 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 financial control relevant to the Company’s preparation of the financial
statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial
control system over financial reporting and the operating effectiveness of such controls. 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit opinion on the standalone financial statements.
5. Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects
of the matters described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone 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, of the state of affairs of the Company as at
31st March, 2015, and its profit and its cash flows for the year ended on that date.
6. Emphasis of Matters
(a) We draw attention to Note No. 31 to the financial statements regarding admissibility of certain expenditures
amounting to ` 1099.25 crore in executing a Broad Gauge Rail Link Project called “Udhampur-Srinagar-Baramulla
Rail Link Project” (USBRL) in the state of Jammu & Kashmir by the Client, Northern Railways. The Company has
suitably replied to the matter and does not expect any liability on this account.
(b) We draw attention to Note No. 33 to the financial statements regarding Income Tax provision made in the
financial statements for disallowance of deduction claimed under section – 80IA of Income Tax Act, 1961 and
taxability of income earned by its permanent establishments in foreign countries in India. Both the matters are
contested by the Company with the concerned Authorities.
Our opinion is not qualified in respect of these matters.
7. Other Matters
We did not audit the financial statements/ information of 7 branches included in the standalone financial statements
of the Company whose financial statements/financial information reflect total assets of ` 2,459.71 crore as at
On the basis of such checks as we considered appropriate and according to the information and explanation given to us
during the course of our audit, we report that:
i. a. The Company has maintained proper records showing full particulars including quantitative details and situation
of fixed assets.
b. The fixed assets were physically verified by the management during the year. There is a regular programme
of verification, which in our opinion, is reasonable having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verifications.
ii. a. The inventory has been physically verified by the management at reasonable intervals during the year. In our
opinion, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanation given to us, the procedures of physical
verification of inventory followed by the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c. On the basis of our examination of records of inventory, we are of the opinion that the Company is maintaining
proper records of inventory. The discrepancies noticed on comparison of physical verification results with the
book records are not material and have been properly dealt with in the books of account.
iii. According to the information and explanation given to us by the management and records produced, the Company
has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, 2013. Thus, the requirements under para 3(iii) (a) & (b) of the
Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, there is adequate internal control
system commensurate with the size of the Company and the nature of its business, for purchase of inventory and
fixed assets and for the sale of goods and services except as described in paragraph no. – 4(b) of Basis of Qualified
Opinion in the main report. During the course of our audit, we have not observed any continuing failure to correct
major weakness in the internal control system. In our opinion, the internal audit system needs to be strengthened
to make it commensurate with its size and nature of the business.
v. According to the information and explanations given to us, and as per our examination of records, the Company has
not accepted any deposits from public and therefore, the directives issued by the Reserve Bank of India and the
provisions of Section 73 to 76 or any other relevant provision of the Companies Act, 2013, and rules framed there
under, are not applicable.
vi. The Company has maintained cost records as required under section 148(1) of the Companies Act, 2013. However,
we are neither required to carry out, nor have carried out any detailed examination of such accounts and records.
vii. a. The Company is generally regular in depositing undisputed statutory dues including provident fund, Income tax,
sales tax, wealth-tax, service-tax, custom duty, excise duty, value added tax, cess and any other statutory dues
applicable with the appropriate authorities. As explained to us, the Company did not have any dues on account
of employees’ state insurance and duty of excise. According to the information and explanation given to us,
there are no undisputed statutory dues which were outstanding as on 31.03.2015 for a period of more than six
months from the date the same become payable.
b. According to information and explanation given to us, and as per our examination of records of the Company,
following are the particulars of dues on account of sales tax, entry tax, trade tax, Income tax, custom duty,
royalty, wealth tax, provident fund, excise duty and cess matters that have not been deposited on account of
dispute as on 31.3.2015.
c. According to the information and explanation given to us, no amount was required to be transferred to Investor
Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of
1956) and rules made thereunder.
viii. The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses
in the financial year and in the immediately preceding financial year.
ix. The Company did not have any outstanding dues to financial institutions, banks or debenture holders during the
year. Accordingly, the clause 3(ix) of the Order is not applicable to the Company.
x. In our opinion, the terms and conditions on which the Company has given guarantees for loans taken by others from
banks or financial institutions are not prejudicial to the interest of the Company.
xi. The Company did not have any term loans during the year. Accordingly, the clause 3(xi) of the Order is not applicable
to the Company.
xii. According to the information and explanations given to us, no fraud on or by the Company has been noticed or
reported during the course of our audit.
1. Direct Taxes
Sr. No. Ageing (in Years) Amount involved Major reasons for pendency
(` in Crore)
1. Upto 1 year 172.89 Disallowance of deduction claimed u/s 80 IA,
2. 1 to 3 years 57.17 disallowance of elimination method for income
3. More than 3 years 137.17 earned by foreign projects, disallowance u/s 14A
for interest free income, etc.
Total 367.23
2. Indirect Taxes
Sr. No. Ageing (in Years) Amount involved Major reasons for pendency
(` in Crore)
1. Upto 1 year 0.50 Various demands raised under Sales Tax, VAT,
2. 1 to 3 years - Entry Tax, Customs etc. on account of pending
3. More than 3 years 195.70 litigation at different authority levels.
Total 196.20
3. Sub-Contractor Claims
Sr. No. Ageing (in Years) Amount involved Major reasons for pendency
(` in Crore)
1. Upto 1 year 165.62 Various claims raised by the sub-contractors
2. 1 to 3 years 915.60 on or by the company on account of issues like
3. More than 3 years 276.17 liquidated damages, quality issues, escalation
claims etc.
Total 1357.39
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R.Chadha & Co.
Chartered Accountants Chartered Accountants
K.K.Garg
FRN 002304N FRN 006711N Mohan Tiwari
Director Finance Chairman & Managing Director
DIN 01495050 DIN 00191363
Particulars Note No. For the year ended For the year ended
31st March 2015 31st March 2014
I. Revenue:
Revenue from operations 22 2,950.22 4,066.82
Less :- Company share of turnover in Integrated Joint Ventures 88.62 8.81
Add:- Company share of profit / (loss) 2.39 (0.81)
in Integrated Joint Ventures 2,863.99 4,057.20
Other income 23 257.75 249.37
Total Revenue 3,121.74 4,306.57
II. Expenses:
Operating and administrative expenses : 24
- Operating Expenses 2,039.50 2,728.51
- Administrative Expenses 30.60 35.84
Employee benefits expenses 25 188.36 221.07
Finance costs 26 8.93 38.45
Depreciation, amortization and impairment 9 10.06 33.64
Total Expenses 2,277.45 3,057.51
III. Profit Before Tax (I - II) 844.29 1,249.06
IV. Tax expense:
(1) Current tax
- For the year 196.95 348.20
- For earlier years (net) 40.89 26.75
(2) Deferred tax (net) 13 27.06 (32.39)
Total Tax Expense 264.90 342.56
V. Profit for the year (III - IV) 579.39 906.50
VI. Earnings per equity share - Basic and Diluted ( in ` ) 48 292.68 457.92
VII. Significant Accounting Policies 1
VIII. Prior period adjustments 28
IX. Notes forming part of Financial Statements 2-49
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R.Chadha & Co.
Chartered Accountants Chartered Accountants
K.K.Garg
FRN 002304N FRN 006711N Mohan Tiwari
Director Finance Chairman & Managing Director
DIN 01495050 DIN 00191363
Particulars Note No. For the year ended For the year ended
31st March 2015 31st March 2014
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before taxation & extraordinary items 844.29 1,249.06
Adjustment for:
Depreciation, amortization and impairment 10.06 33.64
Amortisation of premium on investment 0.01 0.35
Loss / (Profit) on sale of assets(net) 1.41 (0.19)
Interest Income (217.81) (229.51)
Provisions - (Additions - Write back) (Net) (26.44) 140.02
Effect of Exchange differences on translation of Foreign
Currency Cash & Cash Equivalents (19.90) 7.72
Operating Profit before working capital changes (1) 591.62 1,201.09
Adjustment for:
Decrease / (Increase) in Trade Receivables/Loans & Advances 221.78 585.67
Decrease / (Increase) in Inventories 4.51 5.76
Decrease / (Increase) in Other Assets (177.03) (252.57)
(Decrease) / Increase in Trade Payables (143.65) (39.21)
(Decrease) / Increase in Other Liabilities & Provisions 134.67 (1,202.14)
(2) 40.28 (902.49)
Cash generated from operation (1+2) 631.90 298.60
Income Tax Paid (145.43) (234.95)
NET CASH FROM OPERATING ACTIVITIES (A) 486.47 63.65
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets including Capital WIP (7.48) (26.50)
Purchase of Investment Property (15.85) (245.55)
Sale of Fixed Assets 2.32 0.91
Loan to Subsidiaries & Joint Ventures (43.62) (27.84)
Repayment of Loan from Subsidiaries & Joint Ventures 23.15 13.70
Interest Received 236.08 250.66
Investment in Equity and Bonds (117.32) (135.14)
(Investment)/Maturity of Bank Deposits (having maturity
of more than 3 months) (863.64) 366.09
(Purchase) / Sale of Current Investment (Net) 134.96 (61.42)
NET CASH FROM INVESTING ACTIVITIES (B) (651.40) 134.91
CASH FLOW FROM FINANCING ACTIVITIES
Dividend ( including Dividend Distribution Tax) paid (190.73) (233.16)
NET CASH FROM FINANCING ACTIVITIES (C) (190.73) (233.16)
Effect of Exchange differences on translation of Foreign Currency (D) 19.90 (7.72)
Cash & Cash Equivalents
NET DECREASE IN CASH & CASH EQUIVALENT (A+B+C+D) (335.76) (42.32)
CASH AND CASH EQUIVALENT (OPENING) (E) 1,524.81 1,567.13
CASH AND CASH EQUIVALENT (CLOSING) (F) 1,189.05 1,524.81
NET DECREASE IN CASH & CASH EQUIVALENT (F - E) (335.76) (42.32)
Note:
1. Cash Flow Statement has been prepared under indirect method as set out in Accounting Standard -3 (Cash Flow Statements)
2. Cash and cash equivalents consist of cash in hand and balances with banks.
3. Figures in brackets represent outflow of cash.
4. Figures of the previous year have been regrouped/recast wherever necessary.
5. Cash & Cash Equivalent (closing) Includes FDR ` 679.68 crore (` 272.31 crore) against advances from clients on which interest is passed on to them.
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R.Chadha & Co. K.K.Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
(i) Corporate Information iv) Monetary items and contingent liabilities denominated
Ircon International Limited is a public sector construction in foreign currency are translated at the prevailing
company with specialization in execution of Railway closing buying rate at each balance sheet date.
projects on turnkey basis and otherwise. After commencing (b) Transactions of Integral Foreign Operations
business as a railway construction company it diversified Foreign currency transactions of foreign branches are
progressively to roads, buildings, electrical substation translated in the following manner:
and distribution, airport construction, commercial
i) Revenue items are translated into Indian Currency at
complexes, as well as metro works. The Company caters
the rate prevalent on the date of transaction.
to both domestic and international markets. The Company
is an ISO certified Company for Quality, Environment ii) Fixed assets and non-monetary items are translated at
and Occupational Health and Safety Management the rate on the date of transaction.
systems; a Schedule ‘A’ public sector company and a Mini iii) Depreciation is translated at the rates used for
Ratna-Category I. the translation of the value of the assets on which
depreciation is calculated.
(ii) Basis of Preparation
iv) Monetary items and contingent liabilities are
(a) These financial statements are prepared in accordance
translated at the prevailing closing buying rate at each
with Indian Generally Accepted Accounting Principles
balance sheet date.
(GAAP) under the historical cost convention on the
accrual basis. GAAP comprises mandatory accounting (c) The net exchange differences resulting from the
standards as prescribed under Section 133 of the translations at (a) & (b) above are recognized as
Companies Act, 2013 (‘Act’) read with Rule 7 of the income or expense for the year.
Companies (Accounts) Rules, 2014, the provisions of (d) Transactions of Non-Integral Foreign Operations
the Act (to the extent notified). Accounting policies
Financial statements of Non- Integral Foreign Operations
have been consistently applied except where a newly
are translated in the following manner-
issued accounting standard is initially adopted or a
i) The assets and liabilities, both monetary and non-
revision to an existing accounting standard requires a
monetary are translated at the closing buying rate.
change in the accounting policy.
ii) Income and expense items are translated at the rate
(b) The financial statements are reported in Indian
on date of transaction.
rupees and all values are rounded to the nearest
crore rupees with two decimal points except where iii) All resulting exchange difference is accumulated in
otherwise stated. foreign currency translation reserve until disposal of
the net investment and is recognized as income or
(iii) Foreign Currency Transactions expense in the same period in which gain or loss on
(a) Transactions of Indian operations: disposal is recognized.
Foreign Currency transactions are translated in the
following manner:
(iv) Fixed assets
(iii) Inventories are valued at lower of the cost arrived at on iii) A reliable estimate of the amount of the obligation can
First in First out (FIFO) basis and net realisable value. be made.
(iv) Loose tools are expensed in the year of purchase. Reimbursement of the expenditure required to settle a
provision is recognised as per contract provisions or when
(vii) Cash and Bank balance it is virtually certain that reimbursement will be received.
Cash and bank balances comprise of cash at bank, cash Provisions are reviewed at each Balance Sheet date.
in hand, Cheques in hand, demand deposits and bank
deposits with maturity period up to 12 months from (ix) Revenue Recognition
Balance Sheet date. (a) Contract Revenue Recognition
For the purpose of cash flow statement, cash and cash Contract Revenue is recognised to the extent it is probable
equivalents consist of cash and bank balances, cheques in that the economic benefits will flow to the Company
hand and demand deposits net of bank overdrafts. and the revenue can be reliably measured. Depending
(x) Accounting for Joint Venture (JV) Contracts (xiv) Mobilisation Expenses
(i) Jointly controlled operations under work sharing The initial contract expenses on new projects for
arrangements are accounted as independent contracts; mobilisation will be recognised as construction work in
(ii) In respect of contracts executed by a jointly controlled progress in the year of incidence, and pro rata charged off
entity, to the project over the years at the same percentage as
the stage of completion of the contract as at the end of
(a) Unincorporated joint ventures:
financial year.
• Company’s share in profits or losses is accounted on
determination of the profits or losses by the joint ventures. (xv) Depreciation & Amortization
• Investments are carried at cost net of Company’s share Tangible Assets
in recognised profits or losses and net investment is (a) Depreciation on Tangible assets is provided on Straight
reflected as investments, loans & advances or current Line basis (SLM) over the useful life of the assets as
liabilities as the case may be. specified in Schedule II of the Companies Act, 2013
(b) Incorporated jointly controlled entities: (b) In case of leasehold land (other than perpetual lease)
• Income on investments is recognised when the right to and leasehold property, depreciation is provided
receive the same is established. proportionately over the period of lease.
• Investment in such joint ventures is carried at cost (c) Tangible Assets acquired during the year, individually
after providing for any diminution in value which is costing up to ` 5000/- are fully depreciated, by keeping
other than temporary in nature. ` 1 as token value for identification.
(xi) Leases Intangible Assets
(i) Lease incomes from assets given on operating lease Software cost exceeding ` 25 lakhs each is amortised
are recognized as income in the statement of profit & over a period of 36 months on straight line basis from the
loss on straight-line basis over the lease term. date of successful commissioning of the software subject
(ii) Lease payments for assets taken on operating lease to review at each financial year end. Software cost up to
are recognized as expense in the statement of profit & ` 25 Lakhs in each case is fully amortised in the year of
loss on straight-line basis over the lease term. purchase, by keeping ` 1 as token value for identification
(iii) Provision for long term Leave Encashment & Other i) A present obligation arising from a past event, when
Retirement Benefits is made based on actuarial it is not probable that an outflow of resources will be
valuation at the year end. required to settle the obligation; or
ii) A reliable estimate of the present obligation cannot be
(xix) Prior period adjustment and extraordinary items made; or
(i) Income/expenditure relating to prior period and iii) A possible obligation, unless the probability of outflow
prepaid expenses not exceeding ` 50000/- in each of resource is remote.
case are treated as income/expenditure of the
current year. (b) Contingent Assets are neither recognized, nor
disclosed.
(ii) Voluntary Retirement Scheme expenses are charged
(c) Contingent Liability and Provisions needed against
off in the year of incidence of expense.
Contingent Liability and Contingent Assets are
(xx) Taxes reviewed at each Balance Sheet date.
(i) Taxes including current income-tax are computed (d) Contingent Liability is net of estimated provisions
using the applicable tax rates and tax laws. Liability for considering possible outflow on settlement.
6. Trade payables
(` in Crore)
Particulars Foot Note As at 31st March 2015 As at 31st March 2014
Trade Payables
- Micro, Small & Medium Enterprises
(Refer Note 46) - -
- Others
(a) Contractors & Suppliers 434.65 576.65
(b) Related Parties 16.20 17.85
Total 450.85 594.50
B Intangible Assets
Softwares 1.76 0.22 - 1.98 1.75 0.20 - 1.95 0.03 0.01
Current Year Total 1.76 0.22 - 1.98 1.75 0.20 - 1.95 - 0.03 0.01
Previous Year 1.71 0.05 - 1.76 1.71 0.04 - 1.75 - 0.01 -
GRAND TOTAL 492.59 17.92 (14.12) 496.39 339.49 9.15 (10.39) 338.25 0.87 157.27 153.10
CURRENT YEAR
PREVIOUS YEAR 497.42 10.65 (15.48) 492.59 319.49 33.64 (13.64) 339.49 - 153.10 177.93
Foot Notes:-
(i) Fixed assets held for disposal included in sales/adjustment column and transferred to other current assets at Net Book value:-
(` in Crore)
Block of assets As at March 2015 As at March 2014
Gross Block Net Block Gross Block Net Block
Plant and Machinery - - 7.69 0.57
Freehold Building - Residential 0.38 0.28 - -
Vehicles - - 0.04 -
Total 0.38 0.28 7.73 0.57
ii) Includes Locomotives provided on short term operating lease and standby. (Refer Note 37 II)
iii) Depreciation, amortization and impairment for the year debited to Statement of Profit and Loss are as follows:-
(` in Crore)
Description 2014-15 2013-14
Depreciation on Tangible & Intangible Assets 9.15 33.64
Impairment Loss 0.87 -
Depreciation on Investment Property 0.04 -
Total 10.06 33.64
iv) Includes lease hold building on Railways land for 30 years lease (Gross value ` 5.30 crore) for which agreement is yet to be finalised.
v) Lease hold land includes land at Greater Noida Industrial Development Authority (GNIDA) for construction of proposed Central
Inspection Cell (CIC) by the Company (Gross value `0.82 crore). The request for time extension for construction of Building has been
submitted to the appropriate authority.
vi) During the year, the Company has changed its accounting policy relating to charging of depreciation by adopting provisions/rates
containing in Schedule II of the Companies Act, 2013. Due to this change, depreciation for the year is lower by ` 23.06 crore & PBT is
higher by `23.06 crore.
Deferred Tax Assets/ Liability has been recognised in books as per AS -22 (Accounting for Taxes on Income) issued by The
Institute of Chartered Accountants of India
Foot Notes:-
(i) Includes FDR under Lien for ` 0.40 crore
(ii) Debts due by directors, other officers of the company, firms in which any director is a partner or private company in which any director
is a member except joint ventures and Subsidiaries are Nil (` Nil)
B Current Maturities of
Long Term Bonds
Quoted
6.00% Tax Free Indian Railway - - 5,000 50.00
Finance Company Limited (IRFC) - 50.00
Bonds of `1,00,000 each
Total 66.06 176.02
17. Inventories
(` in Crore)
Particulars As at 31st March 2015 As at 31st March 2014
a. Material and stores
- In Hand 32.49 34.66
- With Third Parties 25.81 0.84
- In Transit 0.11 0.33
58.41 35.83
b. Construction work-in-progress at cost 55.88 82.97
Total 114.29 118.80
Foot Notes:-
(i) Debts due by directors, other officers of the company, firms in which any director is a partner or private company in which any director
is a member except joint ventures and Subsidiaries are Nil (` Nil)
(ii) Includes amount due from Subsidiaries :
(` in Crore)
Foot Notes:-
i) Cash in hand includes cash imprest ` 0.01 crore (` 0.02 crore)
ii) Includes Clients Fund on which interest is passed on to them:
(` in Crore)
Particulars Balance at the end of year
31.03.2015 31.03.2014
In Flexi accounts 100.44 73.65
In Fixed deposits (with a maturity period of less than 3 months) 624.86 272.31
In Fixed deposits (with a maturity period of more than 3 months 54.82 -
and upto 12 months)
Total 780.12 345.96
(` in Crore)
Block of assets As at 31st March 2015 As at 31st March 2014
Gross Block Net Block Gross Block Net Block
Plant and Machinery 17.16 1.45 19.91 1.59
Freehold Building - Residential 0.38 0.28 - -
Vehicles - - 0.04 -
Total 17.54 1.73 19.95 1.59
(iii) An amount of ` 19 crore was paid to UTI mutual Fund towards purchase of units on 31.03.2014. As 31.03.2014 and 01.04.2014
was considered to be Bank Holiday for transaction in UTI mutual fund, hence, units were allotted to the folio no: 509270058623 only
on 02.04.2014.
(iv) Debts due by officers of the company, firms in which any director is a partner or private company in which any director is a member
except JVs and Subsidiaries are Nil (` Nil).
Details of amount due from Directors:
(` in Crore)
Particulars As at 31st As at 31st
March 2015 March 2014
Amount due from directors included in interest accrued on staff - 0.005
loans and advances
- 0.005
Foot Notes :-
(i) Payment to Statutory Auditors: 2014-15 2013-14
(i) Audit Fee - current year 0.20 0.31
(ii) Tax Audit Fees - current year 0.07 0.08
(iii) Certification Fees 0.03 0.05
(iv) Reimbursement of Expenses:
- Local 0.09 0.14
- Foreign 0.03 0.05
Total 0.42 0.63
Foot Notes:-
(i) Includes income-tax on non-monetary perks ` 0.33 Crore ( ` 0.35 Crore).
NOte:
Net Provisions (Additions/Write Back) considered in Note 24 (26.44)
Provisions Utilized considered in Note 24 56.51
Retirement Benefits provisions considered in Note 25 (0.46)
Performance Related Pay & LTC considered in Note 25 in Salary and Wages (3.61)
(` in Crore)
Particulars 2014-15 2013-14
Work Receipts & Locomotive lease 806.60 2172.97
Bank Interest 11.22 9.75
Other Interest 0.02 0.20
Foreign Exchange Fluctuation Gain (Net) 19.93 -
Others 3.87 1.84
Total 841.64 2184.76
Lease Rent Not later Later than 1 year and not Later than
than 1 year later than 5 years 5 years
Lease Rent Not later Later than 1 year and not Later than
than 1 year later than 5 years 5 years
Premises Nil Nil Nil
Locomotives 33.42 Nil Nil
(c) Statement of Income, Expenditure, Profit, Assets & Liabilities of Jointly controlled entities:
(` in Crore)
S. Jointly Control Financial Particulars
No. Entities Year Income Expenditure Profit Fixed Assets Current\Non Liabilities
Current Assets
(d) Contingent Liabilities of the Jointly Controlled entities are disclosed in note 29 (f).
42. During the year, Company has carried out assessment on impairment of individual assets by working out the
recoverable amount based on lower of the net realisable value and carrying cost in terms of AS 28 “Impairment of
Assets” notified by the Companies (Accounting standards) Rules, 2006. Accordingly, impairment loss of ` 0.87crore
(Nil) has been provided for.
43. The lease agreement for Locomotives given on hire to a foreign client has been renewed up to 31.12.2015. The
renewal of agreement, however, remains always uncertain. In the event of such non-renewal, the left-over spares
meant for maintenance of the locomotives will become redundant and fetch insignificant value as it may be too
expensive to ship them back to India. The cost of such spares is expensed off in the year of purchase/receipt following
a conservative accounting policy.
Gratuity
The liability towards gratuity as per rules of the Company is recognised on the basis of actuarial valuation.
Leave Encashment
The liability towards encashment of leave as per rules of the Company is recognised on the basis of actuarial valuation
except for employees posted in foreign projects. Since, the foreign assignments are treated as dies - non, liability for
those employees is provided in the books on accrual basis as the amount is payable to employee on repatriation.
The Company expects to contribute ` 8.76 crore for gratuity, ` 11.27 crore for leave encashment, ` 0.02 crore for LTC and
` 0.20 crore for other retirement benefits in the next year.
v) Actuarial Assumptions
a. Method used Projected Unit Credit Method
b. Discount rate 8.00 %
c. Rate of increase in compensation levels 8.00 %
d. Average outstanding service of employees up to retirement 13.53 years
e. Estimated term of benefit obligations 13.53 years
vi) Amounts for the current and previous 4 periods are as follows;
a. Gratuity:
(` in Crore)
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 31 Mar 2011
Defined benefit obligation 66.31 61.85 53.87 49.63 44.61
Plan assets - - - - 4.07
Surplus/(deficit) (66.31) (61.85) (53.87) (49.63) (40.54)
Experience adjustments on plan liabilities 0.15 (3.12) (1.13) (1.01) (3.61)
Experience adjustments on plan assets - - - - (0.26)
b. Leave Encashment (Except employees posted on Foreign Projects):
(` in Crore)
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 31 Mar 2011
Defined benefit obligation 79.90 76.95 61.34 55.61 54.02
Plan assets - - - - -
Surplus/(deficit) (79.90) (76.95) (61.34) (55.61) (54.02)
Experience adjustments on plan liabilities (0.95) (13.46) (0.04) 5.18 (11.52)
Experience adjustments on plan assets - - - - -
c. LTC:
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 31 Mar 2011
Defined benefit obligation 0.13 0.14 0.08 - -
Plan assets - - - - -
Surplus/(deficit) (0.13) (0.14) (0.08) - -
Experience adjustments on plan liabilities 0.02 (0.07) - - -
Experience adjustments on plan assets - - - - -
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 31 Mar 2011
Defined benefit obligation 1.27 1.29 1.41 1.57 1.45
Plan assets - - - - -
Surplus/(deficit) (1.27) (1.29) (1.41) (1.57) (1.45)
Experience adjustments on plan liabilities 0.14 0.28 0.35 0.06 0.02
Experience adjustments on plan assets - - - - -
46. The Company has not received any information from any of its suppliers of their being covered under the Micro, Small
and Medium Enterprises Development Act, 2006 (MSMED Act). Based on this information, there are no amounts
due to Micro, Small and Medium Enterprises as at 31 March 2015.
47. (i) Gross amount required to be spent by the Company during the year is ` 4.93 crore (` 7.30 crore).
(ii) During the year, company has spent ` 6.72 crore (` 8.49 crore) as against required amount of ` 4.93 crore
(` 7.30 crore) on Corporate Social Responsibility (CSR) activities. Break up of expenditure incurred is as follows;
(` in Crore)
Sr. Description 2014-15 2013-14
No.
1. Eradicating hunger, poverty & malnutrition, promoting preventive healthcare & 3.08 3.10
sanitation & making available safe drinking water
2. Promoting Education 0.76 1.16
3. Promoting gender inequality & empowering women 0.02 0.42
4. Ensuring environmental sustainability 1.04 1.07
5. Protection of national heritage, art & culture 0.52 0.10
6. Contribution to Prime Minister Relief Funds or any other fund set up by the 0.50 1.25
Central Govt. for socio-economic development & relief.
7. Rural Development Projects 0.80 1.39
Total 6.72 8.49
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R.Chadha & Co. K.K.Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
The preparation of financial statements of IRCON INTERNATIONAL LIMITED, NEW DELHI for the year ended 31 March
2015 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility
of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India
under section 139(5) of the Act are responsible for expressing opinion on the financial statements under section 143 of
the Act based on independent audit in accordance with standards on auditing prescribed under section 143(10) of the
Act. This is stated to have been done by them vide their Audit Report dated 13.10.2015.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section
143(6)(a) of the Act of the financial statements of IRCON INTERNATIONAL LIMITED, NEW DELHI for the year ended
31 March 2015. This supplementary audit has been carried out independently without access to the working papers
of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a
selective examination of some of the accounting records. Based on my supplementary audit, I would like to highlight the
following significant matters under section 143(6)(b) of the Act which have come to my attention and which in my view
are necessary for enabling a better understanding of the financial statements and the related audit report.
For and on behalf of the Comptroller & For and on behalf of the Board of Directors
Auditor General of India
S. Name of the Reporting Reporting Share Reserves & Total Total Invest- Turnover/ Profit Provision Profit Proposed % of
No. subsidiary period currency and capital Surplus Assets Liabilities ments Total before for taxation after Dividend shareholding
* including share application money, pending allotment of shares. Shares allotted in fnancial year 2015-16
PART - “B” : Joint Ventures
(` in Crore)
S. Latest Shares of Joint Ventures held by the Description Reason Net worth Profit/ Considered in Not
No. audited company on the year end of how there for non attributable to (Loss) for Consolidation Considered in
Balance Nos Amount of Extend of is significant consolid- shareholding the year (IRCON Consolidation
Name of Joint Ventures Sheet Date influence ation as per latest Share) (Other’s
Investment Holding %
in Joint audited Share)
Venture Balance Sheet
1 2 3 4 5 6 7 8 9 10 11 12
Joint Venture Companies
1 Companhia Dos Caminhos De Ferro 31.12.2014 1,250,000 5.53 25.00% Shareholding NA 4.81 (15.20) (3.80) (11.40)
Da Beira (SARL) Mozambique
2 Ircon - Soma Tollway Private 31.03.2015 63,870,000 63.87 50.00% Shareholding NA 5.13 (15.67) (7.83) (7.84)
Limited
3 Chhattisgarh East Railway Limited 31.03.2015 1,170,000 1.17 26.00% Shareholding NA 1.01 (0.04) (0.01) (0.03)
4 Chhattisgarh East - West Railway 31.03.2015 1,170,000 1.17 26.00% Shareholding NA 1.01 (0.04) (0.01) (0.03)
Limited
Unincorporated Joint
Ventures
1 IRCON - SPSCPL 31.03.2015 50.00% Control NA - 6.47 3.24 3.24
2 IRCON - AFCON 31.03.2015 53.00% Control NA 1.32 3.80 1.91 1.89
3 RICON 31.03.2015 49.00% Control NA 9.67 0.51 0.25 0.26
4 International Metro Civil Contractor 31.03.2015 9.50% Control NA 3.52 (0.40) (0.04) (0.36)
(IMCC)
5 Metro Tunelling Group (MTG) 31.03.2015 9.50% Control NA 5.42 2.64 0.28 2.36
For Vinod Kumar & Associates For T.R.Chadha & Co. K.K.Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
Sumita Sharma
Mukesh Dadhich Neena Goel Company Secretary
Partner Partner
M. No. 511741 M. No. 057986
3. Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
While conducting the 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 thereunder.
We conducted our audit 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers internal financial control relevant to the Holding
Company’s preparation of the consolidated financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on
whether the Holding Company has an adequate internal financial controls system over financial reporting in place
5. Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects
of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated 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, of the consolidated state of affairs of the
Group, and its jointly controlled entities as at 31st March, 2015, and their consolidated profit and their consolidated
cash flows for the year ended on that date.
6. Emphasis of Matters
(a) We draw attention to Note No. 33 to the consolidated financial statements regarding admissibility of certain
expenditures amounting to ` 1099.25 crore in executing a Broad Gauge Rail Link Project called “Udhampur-
7. Other Matters
(a) We did not audit the financial statements of 3 subsidiaries and 8 jointly controlled entities, whose financial
statements reflect total assets of ` 1,063.54 crore as at 31st March, 2015, total revenues of ` 176.80 crore and
net cash flows amounting to ` 103.59 crore for the year ended on that date, as considered in the consolidated
financial statements. These financial statements have been audited by other auditors whose reports have been
furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it
relates to the amounts and disclosures included in respect of these subsidiaries, jointly controlled entities and
associates, and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far as it relates to
the aforesaid subsidiaries, jointly controlled entities and associates, is based solely on the reports of the other
auditors.
(b) We did not audit the financial statements/ financial information of one jointly controlled entity, whose financial
statements/ financial information reflect total assets of ` 13.26 crore as at 31st March, 2015, total revenues
of ` 41.17 crore and net cash flows amounting to ` (0.43) crore for the year ended on that date, as considered
in the consolidated financial statements. These financial statements/ financial information are unaudited and
have been furnished to us by the Management and our opinion on the consolidated financial statements, in
so far as it relates to the amounts and disclosures included in respect of this jointly controlled entity, and our
report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid jointly
controlled entity, is based solely on such unaudited financial statements/ financial information. In our opinion
and according to the information and explanations given to us by the Management, these financial statements/
financial information are not material to the Group.
Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements
below, is not qualified in respect of the above matters with respect to our reliance on the work done and the
reports of the other auditors and the financial statements/ financial information certified by the Management.
Our reporting on the Order includes Holding company, subsidiary companies and joint venture companies incorporated
in India (collectively hereinafter referred to as the “Group entities”) on which the auditors have reported on in accordance
with the Order (to the extent applicable). Our report in respect of these subsidiaries and joint ventures is based solely on
the reports of their auditors. We report that:
i. a. The Group entities have maintained proper records showing full particulars including quantitative details and
situation of fixed assets.
b. The fixed assets were physically verified by the management during the year. There is a regular programme of
verification, which in our opinion, is reasonable having regard to the size of the Group entities and nature of
their business. No material discrepancies were noticed on such verification.
ii. a. The inventory has been physically verified by the management at reasonable intervals during the year. In our
opinion, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanation given to us, the procedures of physical
verification of inventory followed by the management are reasonable and adequate in relation to the size of
the Group entities and nature of their business.
c. On the basis of our examination of records of inventory, we are of the opinion that the Group entities are
maintaining proper records of inventory. The discrepancies noticed on comparison of physical verification
results with the book records are not material and have been properly dealt with in the books of account.
iii. According to the information and explanation given to us by the management and records produced, the Group
entities have not granted any loans, secured or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013. Thus, the requirements under para 3(iii) (a) & (b)
of the Order are not applicable to the Group entities.
iv. In our opinion and according to the information and explanations given to us, there is adequate internal control
system commensurate with the size of the Group entities and the nature of their business, for purchase of inventory
and fixed assets and for the sale of goods and services except as described in paragraph no. – 4(b) of Basis of
Qualified Opinion in the main report. During the course of our audit of Holding Company, we have not observed any
continuing failure to correct major weakness in the internal control system. In our opinion, the internal audit system
needs to be strengthened to make it commensurate with its size and nature of the business.
v. According to the information and explanations given to us, and as per our examination of records, the Group entities
have not accepted any deposits from public and therefore, the directives issued by the Reserve Bank of India and the
provisions of Section 73 to 76 or any other relevant provision of the Companies Act, 2013, and rules framed there
under, are not applicable.
vi. The Holding Company has maintained cost records as required under section 148(1) of the Companies Act, 2013.
However, we are neither required to carry out, nor have carried out any detailed examination of such accounts and
records. The statutory auditors of the respective other Group entities have reported that the Central Government
has not prescribed the maintenance of cost records under section 148(1) of the Act.
vii. a. The Group entities are generally regular in depositing undisputed statutory dues including provident fund,
Income tax, sales tax, wealth-tax, service-tax, custom duty, excise duty, value added tax, cess and any other
statutory dues applicable with the appropriate authorities. As explained to us, the Group entities did not
have any dues on account of employees’ state insurance and duty of excise. According to the information and
explanation given to us, there are no undisputed statutory dues which were outstanding as on 31.03.2015 for
a period of more than six months from the date the same become payable.
b. According to information and explanation given to us, and as per our examination of records of the Holding
Company, following are the particulars of dues on account of sales tax, entry tax, trade tax, Income tax, custom
duty, royalty, wealth tax, provident fund, excise duty and cess matters that have not been deposited on account
of dispute as on 31.3.2015. The statutory auditors of the respective other Group entities have reported that
there are no aforesaid dues that have not been deposited on account of dispute as on 31.3.2015.
c. According to the information and explanation given to us, no amount was required to be transferred to Investor
Education and Protection Fund by Group entities in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made thereunder.
viii. In our opinion and on consideration of the comments in the reports of the other auditors of the Group entities, two
subsidiary companies and two jointly controlled companies have been registered for less than five years. of the remaining
Group entities, there are accumulated losses of more than fifty percent of the respective net worth in one jointly controlled
company but has not incurred cash losses in the financial year and in the immediately preceding financial year. In case of
the Holding Company and one subsidiary company, there are no accumulated losses at the end of the financial year and
have also not incurred cash losses in the financial year and in the immediately preceding financial year.
ix. In our opinion and on consideration of the comments in the reports of the other auditors of the Group entities, one jointly
controlled company has outstanding dues to financial institutions, banks or debenture holders and has not defaulted in
repayment of the same during the year.
The other Group entities did not have any outstanding dues to financial institutions, banks or debenture holders during
the year. Accordingly, the clause 3(ix) of the Order is not applicable to these entities.
x. In our opinion, the terms and conditions on which the Holding Company has given guarantees for loans taken by others
from banks or financial institutions are not prejudicial to the interest of the Group.
The other Group entities have not given any guarantees for loan taken by others from banks or financial institutions.
Accordingly, the provisions of clause 3(x) of the Order, as reported by the other auditors, are not applicable to them.
xi. In our opinion and on consideration of the comments in the reports of the other auditors of two jointly controlled
companies, the term loans were applied for the purpose for which the loans were obtained.
The other Group entities did not have any term loans during the year. Accordingly, the clause 3(xi) of the Order is not
applicable.
xii. According to the information and explanations given to us, no fraud on or by the Group entities has been noticed or reported
during the year.
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R. Chadha & Co. K.K. Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R. Chadha & Co. K.K. Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R.Chadha & Co. K.K.Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
Mukesh Dadhich Neena Goel Sumita Sharma
Partner Partner Company Secretary
M. No. 511741 M. No. 057986
Place : New Delhi Place : New Delhi
Date : 13th October 2015 Date : 14.08.2015
(i) Group Information basis by adding together the book values of assets,
Ircon International Limited (the Holding Company) is a liabilities, income & expenses, after eliminating the
public sector construction company with specialization unrealised profits/losses on intra-group transactions.
in execution of Railway projects on turnkey basis and (c) In case of jointly controlled operations, company’s
otherwise. The Company is an ISO certified Company share of revenues, common expenses, assets &
for Quality, Environment and Occupational Health and liabilities are included in revenues, expenses, assets &
Safety Management systems; a Schedule ‘A’ public sector liabilities respectively.
company and a Mini Ratna-Category I. After commencing (d) Minorities’ interest in net profits of consolidated
business as a railway construction company it diversified subsidiaries for the year is identified and adjusted
progressively along with its subsidiaries and Joint Ventures against the income in order to arrive at the net income
(collectively referred to as “the Group”) to roads, buildings, attributable to the shareholders of the Company. Their
electrical substation and distribution, airport construction, share of net assets is identified and presented in the
commercial complexes, as well as metro works. The Group Consolidated Balance Sheet separately.
caters to both domestic and international markets.
(iv) Foreign Currency Transactions
(ii) Basis of Preparation (a) Transactions of Indian operations:
(a) These consolidated financial statements are prepared
Foreign Currency transactions are translated in the
in accordance with Indian Generally Accepted
following manner:
Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises i) All foreign currency transactions are translated into
mandatory accounting standards as prescribed under Indian Currency at the rate prevalent on the date of
Section 133 of the Companies Act, 2013 (‘Act’) read transaction.
with Rule 7 of the Companies (Accounts) Rules, 2014, ii) Fixed assets and non-monetary items are translated at
the provisions of the Act (to the extent notified). the rate on the date of transaction.
Accounting policies have been consistently applied iii) Depreciation is translated at the rates used for
except where a newly issued accounting standard is translation of the value of the assets on which
initially adopted or a revision to an existing accounting depreciation is calculated.
standard requires a change in the accounting policy.
iv) Monetary items and contingent liabilities denominated
(b) The consolidated financial statements are reported in foreign currency are translated at the prevailing
in Indian rupees and all values are rounded to the closing buying rate at each balance sheet date.
nearest crore rupees with two decimal points except
where otherwise stated. (b) Transactions of Integral Foreign Operations
(iii) Consolidated Financial statements Foreign currency transactions of foreign branches are
translated in the following manner:
(a) The consolidated financial statements of Ircon
International Limited and its subsidiaries have been i) Revenue items are translated into Indian Currency at
consolidated on a line- by-line basis by adding together the rate prevalent on the date of transaction.
the book value of the like items of assets, liabilities, ii) Fixed assets and non-monetary items are translated at
income and expenses, after eliminating intra-group the rate on the date of transaction.
balances and unrealized profits/losses on intra-group iii) Depreciation is translated at the rates used for
transactions, and are presented to the extent possible, the translation of the value of the assets on which
in the same manner as the Company’s independent depreciation is calculated.
financial statements. iv) Monetary items and contingent liabilities are
(b) The company’s Interest in jointly Controlled entities translated at the prevailing closing buying rate at each
are proportionately consolidated on a line-to-line balance sheet date.
(ii) Item Rate and Lump Sum turnkey contracts, provision is (ii) In fixed price contracts, revenue is recognized by adding
made for maintenance to cover Group’s liability during the aggregate cost of work certified and proportionate
defect liability period keeping into consideration the margin using the percentage of completion method. The
contractual obligations, the obligations of the sub- percentage of completion is determined as a proportion
contractors, operating turnover and other relevant of cost incurred up to the reporting date to the total
factors. estimated cost of the contract.
(iii) Provision for unforeseen expenditure during design Full provision is made for any loss in the period in which it
guarantee period is made based on risk perception of is foreseen.
management in each contract assessed at the end of Revenue does not include Sales Tax/VAT/WCT/Service Tax
each financial year. This shall, however, be subject to etc.
a minimum of ` 50 lakhs and maximum of the amount
of Design guarantee specified in Contract Agreement (b) Toll Fee
with the Client. Toll Fee collection from the users of facility is accounted
for as and when the amount is due and recovery is certain.
(b) Provision for Demobilisation
Income from the sale of smart cards is recognized as and
Provision for demobilisation to meet the expenditure when the amount is received from the users of the cards.
towards demobilisation of Manpower and Plant &
(c) Other Revenue Recognition
Equipment is made in foreign projects.
(i) Dividend income is recognized when the right to
(c) Provision for Doubtful Debts /Advances receive payment is established.
Provision for Doubtful Debts /Advances is made when (ii) Interest income is recognized on a time proportion
there is uncertainty of realisation irrespective of the period basis taking into account the amount outstanding and
of its dues. For outstanding over 3 years full provision is the interest rate applicable.
made unless the amount is considered recoverable. Debts/
Advances are written off when unrealisibility is almost (xii) Leases
established. (i) Lease incomes from assets given on operating lease
are recognized as income in the statement of profit &
(d) Others
loss on straight-line basis over the lease term.
Provision is recognised when:
(ii) Lease payments for assets taken on operating lease
i) The Group has a present obligation as a result of a past are recognized as expense in the statement of profit &
event, loss on straight-line basis over the lease term.
ii) A probable outflow of resources is expected to settle
(xiii) Liquidated Damages and Escalations
the obligation and
(i) Liquidated damages/penalties (LD) due to delays
iii) A reliable estimate of the amount of the obligation can arising out of the contractual obligations and
be made. provisionally withheld from contractors/under dispute
Reimbursement of the expenditure required to settle a are adjusted against contract cost only on final decision
provision is recognised as per contract provisions or when in this regard. However, LD recovered/withheld by
it is virtually certain that reimbursement will be received. client is accounted for on recovery/withholding &
Provisions are reviewed at each Balance Sheet date. adjusted against contract revenue. Possible Liquidated
d. General Reserve
Opening Balance 2,904.81 2,227.45
Add: Transfer from surplus in statement of 364.96 3,269.77 677.36 2,904.81
profit and loss (Refer (e) below)
Foot Notes:-
i Includes Interest payable on advances from clients ` 69.47 Crore ( ` 67.96 Crore)
ii Includes Outstanding and Other Liabilities.
B Intangible Assets
Softwares 1.76 0.22 - 1.98 1.75 0.20 - 1.95 - 0.03 0.01
Lease Rights 50.86 22.48 - 73.34 0.12 1.13 - 1.25 - 72.09 50.74
Carriageway 691.99 691.99 161.29 44.25 - 205.54 - 486.45 530.70
Current Year Total 744.61 22.70 - 767.31 163.16 45.58 - 208.74 - 558.57 581.45
Previous Year 693.70 50.90 - 744.60 118.76 44.40 - 163.16 581.45 574.94
GRAND TOTAL 1,248.95 49.93 (14.13) 1,284.75 501.74 56.41 (10.41) 547.74 0.87 736.14 747.21
CURRENT YEAR
PREVIOUS YEAR 1,190.11 74.38 (15.54) 1,248.95 436.87 78.57 (13.70) 501.74 747.21 753.24
Foot Notes:-
(i) Fixed assets held for disposal included in sales/adjustment column and transferred to other current assets at Net Book value:-
(` in Crore)
Block of assets As at 31st March 2015 As at 31st March 2014
Gross Block Net Block Gross Block Net Block
Plant and Machinery - - 7.69 0.57
Freehold Building - Residential 0.38 0.28 - -
Vehicles - - 0.04 -
Total 0.38 0.28 7.73 0.57
ii) Includes Locomotives provided on short term operating lease and standby. (Refer Note 39 II)
iii) Depreciation, amortization and impairment for the year debited to Statement of Profit and Loss are as follows:-
(` in Crore)
Description 2014-15 2013-14
Depreciation on Tangible & Intangible Assets 56.34 78.54
Impairment Loss 0.87 -
Depreciation on Investment Property 0.04 -
Carried to Statement of Profit and Loss 57.25 78.54
Depreciation Capitalised during the year 0.07 0.03
Total 57.32 78.57
iv) Includes lease hold building on Railways land for 30 years lease (Gross value ` 5.30 crore) for which agreement is yet to be finalised.
v) Lease hold land includes land at Greater Noida Industrial Development Authority (GNIDA) for construction of proposed Central
Inspection Cell (CIC) by the Company (Gross value `0.82 crore). The request for time extension for construction of Building has been
submitted to the appropriate authority.
vi) During the year, the Group has changed its accounting policy relating to charging of depreciation by adopting provisions/rates containing in
Schedule II of the Companies Act, 2013. Due to this change, depreciation for the year is lower by ` 23.46 crore & PBT is higher by ` 23.46 crore.
Break up :-
1. Implementation of SAP 1.01 1.01
2. Development / Redevelopment of Railway Stations 14.13 9.71
Break-up :-
1. Office Building at CCM, Gurgaon 4.82 -
2. Work of Fire Fighting & Civil Construction at CIC Noida 0.12 -
3. Office Building at Kolkata 0.26 -
4. Multi Functional Complexes 0.69 22.09
5. Railway Corridors (I & III), Chhattisgarh 9. 40 -
15.29 22.09
Deferred Tax Assets/ Liability has been recognised in books as per AS -22 (Accounting for Taxes on Income) issued by
The Institute of Chartered Accountants of India
0.59 0.59
Less: Provision for doubtful 0.59 - 0.59 -
Total 66.16 43.88
Foot Notes:-
(i) Includes FDRs under Lien for ` 0.41 crore
(ii) Debts due by directors, other officers of the group, firms in which any director is a partner or private company in which any director is a
member except joint ventures and Subsidiaries are Nil (` Nil)
18. Inventories
(` in Crore)
Particulars As at 31st March 2015 As at 31st March 2014
a. Material and stores
- In Hand 42.54 38.48
- With Third Parties 25.81 0.84
- In Transit 0.11 0.33
68.46 39.65
b. Construction work-in-progress at cost 55.88 84.54
Foot Notes:-
(i) Debts due by directors, other officers of the group, firms in which any director is a partner or private company in which any director is
a member are Nil (` Nil)
(` in Crore)
Particulars Balance at the end of year
31st March 2015 31st March 2014
In Flexi accounts 100.44 73.65
In Fixed deposits (with a maturity period of less 624.86 272.31
than 3 months)
In Fixed deposits (with a maturity period of 54.82 -
more than 3 months and upto 12 months)
Total 780.12 345.96
54.75 23.32
Less:- Provision for doubtful advances 54.75 - 23.32 -
Total 428.51 539.07
Foot Notes:-
(i) Loan is interest bearing and is for working capital requirements.
(ii) Debts due by other officers of the group, firms in which any director is a partner or private company in which any director is a member
except joint ventures are Nil (` Nil)
(iii) Details of amount due from Directors:
(` in Crore)
Particulars As at 31st March 2015 As at 31st March 2014
Amount due from directors included in staff 0.02 0.03
loans and advances
Total 0.02 0.03
(` in Crore)
Foot Notes:-
(i) Includes interest on income - tax ` 0.03 Crore ( ` 26.31 Crore).
NOte:
Net Provisions(Additions/Write Back) considered in Note 25 (13.22)
Provisions Utilized considered in Note 25 56.51
Retirement Benefits provisions considered in Note 26 (052)
Performance Related Pay & LTC considered in Note 26 in Salary and Wages (3.61)
b) The financial statements of the entities used for the b) There are some cases relating to employees/others are
purpose of consolidation have the same reporting date pending in the Courts against the Holding Company in
as that of the Company except the reporting period of respect of which the liability is not ascertainable.
Joint-Venture Company, Companhia Dos Caminhos De c) Direct disputed tax demands under appeal amounting
Ferro Da Beira SARL which follows the calendar year. to ` 132.66 crore (` 126.23 crore) of which ‘NIL’ (NIL)
There is no material transaction from 1st January 2015 are reimbursable from the clients.
to 31st March 2015 in this joint venture.
d) Indirect disputed tax demands under appeal ` 186.06
c) As far as possible, the consolidated financial crore (` 176.06 crore) of which ` 114.16 crore
statements are prepared using uniform accounting (` 107.27 crore) are reimbursable from the clients.
policies for like transactions and other events in
similar circumstances and are presented in the same e) Provident Fund Commissioner, Jammu & Kashmir
manner as the Holding Company’s separate financial has demanded ‘NIL’ (` 1.75 crore) for contribution of
statements. The differences in accounting policies, if provident fund on sub-contractors providing utility
any, of the Holding Company and its joint ventures are and supporting services.
not material. f) In respect of Joint Ventures:
31. Contingent liabilities: I. Undertaking to Punjab National Bank against term
loan given to Joint Venture Company, Ircon-Soma
a) Claims against the Group not acknowledged as debt
Tollway Private Limited, to make good 50% of any
` 1279.09 crore net of provision of ` 78.29 crore
shortfall in the dues, if any, in the event of termination
(`1039.11 crore net of provision of ` 47.93 crore).
of the concession agreement. Maximum obligation of
Against this the Group has counter claims of ` 821.69
the company in this respect could be `162.60 crore
crore (` 303.06 crore). In case claims against the
(` 222.15 crore).
Group do materialise, claims for ` 748.02 crore
(` 434.65 crore) will be reimbursable from the II. Indemnity bond for International Metro Civil
clients. Interest on claims is not considered, being Contractor of ` 1.24 crore (` 1.24 crore).
unascertainable. III. Sales-tax liability of International Metro Civil
V. Bank guarantee in case of Ircon-RCS-PFLEIDERER of ` 34. The Holding Company is liable to pay ` 76.28 Crore
1.40 crore (` 1.40 crore). for FY 2014-15 & ` 179.58 Crore for FY 2013-14 on
account of taxes on Sri lanka projects which shall be
VI. Income Tax liability in the case of International Metro directly reimbursed by Sri Lankan Railway to Sri Lankan
Civil Contractor of ` 5.29 crore (` 5.29 crore) and in Inland Revenue Department. Therefore, the same has
case of Metro Tunnelling Group of ` 0.88 crore (` 0.88 not been provided in the books of accounts.
crore).
35.(a) Since assessment year 2000-01, the Holding
VII. Recovery suit against the International Metro Civil Company has been claiming deduction under Section-80
Contractor by M/s Sai Engineers is ` 0.02 crore IA of the Income Tax Act, 1961 in income tax returns, w.r.t.
(` 0.02 crore). eligible infrastructure construction projects till date.
VIII. Bank Guarantee in case of Ircon-Afcon JV for ` 51.34 The Holding Company has filed appeal to ITAT on
crore (` 56.71 crore) for Bhairab Railway Bridge disallowance by CIT (A) for the said deduction for all
Project, Bangladesh. assessment years except assessment years 2004-05, 2005-
g) Pending disposal of application for extension of time 06 and 2007-08 for which the Income Tax department has
by clients, the Group is contingently liable to pay filed appeal against allowance of deduction by CIT(A).
liquidated damages to the extent of ` 56.70 crore (` Accordingly, the Holding Company has made provision for
44.33 crore) to the clients. tax without considering the deduction under Section 80-IA
since AY 2000-01. Total amount of deduction under section
32. Commitments:
80IA is ` 925.63 crore (` 799.79 crore) having tax impact of
a) Estimated amount of contracts remaining to be ` 315.70 crore (` 272.92 crore).
executed on capital account (net of advances) is
` 91.03 crore (` 40.76 crore). (b) The Holding Company is offering global income,
for tax in India after excluding the income earned by its
b) Other Commitments: Commitments for fund/ permanent establishments in foreign countries having
providing guarantee to/on behalf of subsidiaries/ joint Double Taxation Avoidance Agreements (DTAA) with India,
ventures: as per settled legal position that such income can be taxed
i) Counter guarantee to Indian overseas bank for by source country and is not taxable in India. However, CIT
issuance of bank guarantee to subsidiary company, (A) denied the treatment of excluding such foreign income
IrconISL, amounting to ` 10.00 crore (` 10.00 crore). and only gave credit for taxes paid out of India for the AY
2006-07, 2008-09 and 2009-10.
ii) Counter guarantee to State bank of India for issuance
of letter of credit to Joint venture, Ircon Afcons JV, Jurisdictional Assessing Officer has also started making
amounting to ` 38.66 crore (NIL). the assessment in a similar manner from the AY 2010-11
onwards. The Holding Company has filed an appeal to
iii) An undertaking to Punjab National Bank for non-
Income Tax Appellate Tribunal for all the assessment year
disposal of 21% of present holding of the company
under dispute.
(1,34,12,700 shares of ` 10 each) in Joint Venture
Company, Ircon-Soma Tollway Private Limited, Accordingly, the Holding Company has made a provision
amounting to ` 13.41 crore (` 13.41 crore). of ` 185.36 crore in FY 2012-13 for the AY 2006-07 to AY
2013-14 and ` 229.71 for the AY 2013-14 to AY 2015-16 in
33. The Holding Company is executing a Broad Gauge Rail
the respective years.
Link Project called “Udhampur-Srinagar-Baramulla
Rail Link Project” (USBRL) in the state of Jammu & 36. (a) The Holding Company has 25% equity stake in CCFB,
Kashmir on cost plus basis. Northern Railway, the a Joint Venture Company incorporated as per Mozambican
client, has raised certain queries on admissibility laws in the year 2004 to execute a railway project awarded
of certain expenditure incurred by the company/ by the Government of Mozambique (GOM) on BOT basis.
contract addition payable on the cost incurred & The Holding Company has provided shareholders’ loan to
certain observations on the quality of work done on CCFB and the total amount including accrued interest up
(c) The holding company’s share in respect of the assets, liabilities, income & expenditure (each without elimination
of the effect of transactions between the group & the joint ventures) relating to its interest in the jointly controlled
entities in the Consolidated Financial Statements are:
(` in Crore)
S.No Particulars 2014-15 2013-14
1. Fixed Assets 504.98 531.24
2. Other Non Current Assets 26.45 0.52
3. Current Assets
a) Inventories 21.62 1.29
b) Trade receivables 0.67 0.63
c) Cash and Bank balances 73.12 91.95
d) Short-term loans and advances 39.33 21.98
e) Other current assets 134.76 126.96
4. Non Current Liabilities
a) Long term liabilities 543.20 583.95
5. Current Liabilities
a) Trade payables 17.30 3.43
b) Other current liabilities 205.16 145.83
c) Short-term provisions 0.29 0.19
6. Income 173.24 90.99
7. Expenditure 182.73 115.28
(d) Contingent Liabilities of the Jointly Controlled entities are disclosed in note 31 (f).
d) Disclosure of amount due to/from related parties (to the extent not consolidated):
(` in Crore)
Particulars Amount
As on 31.3.2015 As on 31.3.2014
Amount Receivables
(1) Loan outstanding to JVs 97.33 60.19
CCFB 66.07 60.19
CERL 22.20 -
Ircon-Afcons JV 9.06 -
(2) For Other Services, reimbursements etc. to JVs 7.75 3.50
CCFB 0.59 3.50
ISTPL 3.58 -
CERL 3.28 -
CEWRL 0.30 -
43. Disclosure of net assets & shares in profit of parent, subsidiaries, associates & joint ventures as per direction under
schedule III of the Companies Act, 2013.
(` in Crore)
S. Name of Entity 2014-15 2013-14
No. Net Assets i.e. Total Assets Share in Profit or Loss Net Assets i.e. Total Assets Share in Profit or Loss
minus Total Liabilities (after Tax) minus Total Liabilities (after Tax)
As % of Amount As % of Amount As % of Amount As % of Amount
Consolidated net consolidated Consolidated consolidated
assets profit or loss net assets profit or loss
A Holding 93.60 3,092.59 99.11 576.98 96.92 2,851.66 101.68 904.98
Company, Ircon
International Ltd.
B Subsidiaries
1 IrconISL 1.98 65.57 1.94 11.27 1.00 29.31 0.86 7.66
2 IRSDC 1.31 43.44 0.34 1.98 1.41 41.46 0.28 2.53
3 Ircon PB 2.69 88.91 (0.19) (1.09) - - - -
Tollway Ltd.
Recovery as applicable has been made from Directors who have been provided with Company accommodation
and car.
45. During the year, the Holding Company has carried out assessment on impairment of individual assets by working out
the recoverable amount based on lower of the net realisable value and carrying cost in terms of AS 28 “Impairment
of Assets” notified by the Companies (Accounting standards) Rules, 2006. Accordingly, impairment loss of ` 0.87
crore (NIL) has been provided for.
46. The lease agreement for Locomotives given on hire to a foreign client has been renewed up to 31.12.2015. The
renewal of agreement, however, remains always uncertain. In the event of such non-renewal, the left-over spares
meant for maintenance of the locomotives will become redundant and fetch insignificant value as it may be too
expensive to ship them back to India. The cost of such spares is expensed off in the year of purchase/receipt following
a conservative accounting policy.
Leave Encashment
The liability towards encashment of leave as per rules of the Holding Company is recognised on the basis of actuarial
valuation except for employees posted in foreign projects. Since, the foreign assignments are treated as dies - non, liability
for those employees is provided in the books on accrual basis as the amount is payable to employee on repatriation.
The Holding Company expects to contribute ` 8.76 crore for gratuity, ` 11.27 crore for leave encashment, ` 0.02 crore
for LTC and ` 0.20 crore for other retirement benefits in the next year.
vi) Amounts for the current and previous 4 periods are as follows;
a. Gratuity:
(` in Crore)
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 31 Mar 2011
Defined benefit obligation 66.31 61.85 53.87 49.63 44.61
Plan assets - - - - 4.07
Surplus/(deficit) (66.31) (61.85) (53.87) (49.63) (40.54)
Experience adjustments on plan 0.15 (3.12) (1.13) (1.01) (3.61)
liabilities
Experience adjustments on plan assets - - - - (0.26)
c. LTC:
(` in Crore)
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 31 Mar 2011
Defined benefit obligation 0.13 0.14 0.08 - -
Plan assets - - - - -
Surplus/(deficit) (0.13) (0.14) (0.08) - -
Experience adjustments on plan liabilities 0.02 (0.07) - - -
Experience adjustments on plan assets - - - - -
49. The Group has not received any information from any of its suppliers of their being covered under the Micro, Small
and Medium Enterprises Development Act, 2006 (MSMED Act). Based on this information, there are no amounts
due to Micro, Small and Medium Enterprises as at 31 March 2015.
50.(i) Gross amount required to be spent by the Holding Company during the year is ` 4.93 crore (` 7.30 crore).
(ii) During the year, the Holding Company has spent ` 6.70 crore (` 8.41 crore) as against required amount of `
4.93 crore (` 7.30 crore) on Corporate Social Responsibility (CSR) activities. Break up of expenditure incurred is
as follows;
(` in Crore)
Sr. Description 2014-15 2013-14
No.
1. Eradicating hunger, poverty & malnutrition, promoting preventive 3.06 3.02
healthcare & sanitation & making available safe drinking water
2. Promoting Education 0.76 1.16
3. Promoting gender inequality & empowering women 0.02 0.42
4. Ensuring environmental sustainability 1.04 1.07
5. Protection of national heritage, art & culture 0.52 0.10
6. Contribution to Prime Minister Relief Fundsor any other fund set up by 0.50 1.25
the Central Govt. for socio-economic development & relief.
7. Rural Development Projects 0.80 1.39
Total 6.70 8.41
51. Basic earnings per share are computed by dividing net profit after tax ` 582.16 crore (` 890.01 crore) by (1,97,96,000)
fully paid equity shares of ` 10 each. Diluted earnings per share are not applicable, as there is no dilution involved.
As per our Report of even date attached For and on behalf of the Board of Directors
For Vinod Kumar & Associates For T.R.Chadha & Co. K.K.Garg Mohan Tiwari
Chartered Accountants Chartered Accountants Director Finance Chairman & Managing Director
FRN 002304N FRN 006711N DIN 01495050 DIN 00191363
The preparation of consolidated financial statements of IRCON INTERNATIONAL LIMITED, NEW DELHI for the year ended
31st March 2015 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the
responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor
General of India under Section 139(5) read with Section 129(4) of the Act are responsible for expressing opinion on the
financial statements under Section 143 read with Section 129(4) of the Act based on independent audit in accordance
with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them
vide their Audit Report dated 13.10.2015.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section
143(6) (a) read with Section 129(4) of the Act of the consolidated financial statements of IRCON INTERNATIONAL LIMITED,
NEW DELHI for the year ended 31st March 2015. We conducted supplementary audit of the financial statements of
the Subsidiaries namely Ircon infrastructure & Services Limited, Ircon PB Tollway Limited and Indian Railway Stations
Development Corporation Limited but did not conduct supplementary audit of Jointly Controlled Entities (as per list
enclosed) for the year ended on that date. This supplementary audit has been carried out independently without access
to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company
personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant
has come to my knowledge which would give rise to any comment upon or supplement to statutory auditor’s report.
List of Joint Ventures of IRCON INTERNATIONAL LIMITED, NEW DELHI for which Supplementary audit was not conducted
under Section 143(6)(a) read with section 129(4) of the Companies Act, 2013 for the year 2014-15.
Joint Ventures
1. RICON.
2. Companhia Dos Caminhos De Ferro Da Beira, SA (CCFB).
3. Ircon-Soma Tollway Private Limited (ISTPL).
4. International Metro Civil Contractors (IMCC).
5. Metro Tunnelling Group (MTG).
6. Ircon-SPSCPL U.J.V.
7. Ircon-Afcons JV.
8. Chhattisgarh East Railway Limited (CERL).
9. Chhattisgarh East-West Railway Limited (CEWRL).