(i) Provision for doubtful debts/advances is made on the basis of management's estimates.

(ii) Provision for retirement benefits (excluding for pension) is made on the basis of independent actuary's valuation.

(iii) Provision of Pension in respect of deemed deputationist Optees has been made to make 100% commutation of difference of pension (IRCTC- Railways)as full and final one time settlement of pensionery liabilities of IRCTC so as to avoid monthly recurring liablity of pension. Provision of Leave Encashment includes H 1.33 lakhs for deemed deputationists Optees.

(iv) Provision for pension represents contribution payable in respect of employees who are yet to open their NPS account as on 31st March, 2023.

(v) Debit Balance amounting H 51.06 Lakhs in Post Retirement Medical Scheme as on 31st March, 2022 was shown in Prepaid Expenses under "Note :- 12 Other Current Assets" .

(vi) Provision for Claims & Damages includes provision for GST refund to licensees amounting to H 796.59 Lakhs payable as refund of license fee given to licensees during previous years.

(vii) Amount of H 4365.02 Lakhs represents difference between gross value of defined benefit obligation i.e. H 5312.20 Lakhs and net value of defined value of obilgation i.e. Rs. 947.18 Lakhs.

(ii) Royale Indian Rail Tours Limited (RIRTL) is a Joint Venture of IRCTC and Cox and King (C&K) on the basis of JV agreement dated 10.12.2008 for running, operating and managing the luxury tourist train, Maharajas' Express for a minimum period of 15 years on lease to be taken from IRCTC. It operated the train for one season and thereafter dispute arose between the management of both the companies.

C&K has initiated the Arbitration Proceedings against IRCTC and RIRTL seeking relief inter alia that (i) the JV Agreement be specifically performed (ii) the termination of the JV agreement be struck down, (iii) pending the hearing and final disposal of the claim, it be directed that the Train continues to operate as part of RIRTL (iv) IRCTC be permanently restrained from using the rake/coaches of the Train for any other purpose other than for exclusive use of the JV Company, (v) to execute a formal lease agreement for the Train in terms of the JV Agreement (vi) IRCTC be directed to pay H2000 lakhs towards shortfall of the working capital of the JV Company and (vii) in the alternative and in the unlikely event that specific performance of the JV Agreement is not granted then claim of damages amounting to H35,100 lakhs.

During the proceedings dated 26.07.2021, Counsel for Cox and King made a statement that “The Claimant wishes to restrict its Claim to H 2270 Lakhs along with interest being the cost thrown away in this Contract”. The final arguments in the matter have been heard on 28.02.2023 and the awards have been reserved, which is yet to be passed and pronounced.

The claim of H 2270 Lakhs, included in 37.2 (i) (e) above, has also been denied by IRCTC. The said amount is only speculative and not fixed by any authority/quasi judicial body. As such, there is no requirement for making provision in the books of accounts.

(iii) VAT Case filled Before Hon’ble Supreme Court of India

IRCTC has been paying service tax towards on-board catering services in trains in which catering charges are included in railway fare. The commissioner of VAT vide order dated 23.03.2006 considered on-board catering service in trains as sale of goods within the meaning of section 2(zc)(vii) of the said Act.

IRCTC filed an appeal before the Appellate Tribunal Value Added Tax. The Tribunal, while partly allowing the appeal vide Order dated 07.09.2006, held that the observations pertaining to Central Act were beyond the Commissioner's jurisdiction as they pertained to taxability of the goods on sale or purchase taking place in the course of inter-state sale outside the State.

IRCTC assailed the said order by way of filing writ petitions in the Hon'ble High Court of Delhi at New Delhi praying that the services rendered by IRCTC are not liable to Value Added Tax under the Delhi Value Added Tax Act, 2004 and that on-board catering services of IRCTC are primarily services in which food and beverages are also provided and are liable to service tax only. The Hon'ble Delhi High Court upheld the decision of commissioner of VAT and dismissed the petition of IRCTC. The Hon'ble High Court had stated IRCTC is liable to pay VAT. However, it may take refund of service tax already paid.

Aggrieved by the Judgement, IRCTC has moved to Hon'ble Supreme Court, filing Special leave petition against the judgment dated 19.7.2010 passed by the Hon'ble High Court of Delhi. SLP 25292-25319 of 2010 had been admitted and awaiting its turn. The Hon'ble Supreme Court has granted ad-interim direction in the nature of Status Quo on recovery of the demand raised by VAT authorities. Hence the matter is sub-judice and IRCTC is not liable to pay VAT at present. However, IRCTC has provided VAT liability (net of service tax) of H 8251.01 Lakhs up to FY 2017-18(upto 30th June,2017) across India as a matter of prudent accounting policy and not included in 37.2 (i) above. Corresponding VAT input admissibility is shown as balance with Govt. authorities.

(iv) Certain Licensees who are contractor of IRCTC for providing catering services in trains invoked arbitration clause seeking compensation on account of difference in rates of regular meal and combo meal as provided in terms of CC 63 of 2013 read with CC 67 of 2013 circular issued by Indian Railways and further claimed price of welcome drink provided in terms of CC 32 of 2014, for the period from 2014 till date. The arbitrator awarded a sum of H 7400 Lakhs (approx.) in 13 petitions for the aforesaid services for the period from January 2015 to March 2020.

"On the basis of appraisal of the factual position, it is matter of record that the claimant never claimed said amount while submitting invoices for the aforesaid services rendered to the passengers. These all contracts are SBD contracts and were assigned to IRCTC post Catering Policy 2017. It is also a matter of record that the services were provided to the passengers of the Indian Railways and the amount so paid is required to be reimbursed to the IRCTC by the Indian Railways. In these circumstances, there will not be any liability of the IRCTC as a consequence of the award and there is no need to make provision pursuant to the above awards. As the Company intentds to dispute the awards and also has a right of recovery from Railways, in case the Company is held liable to pay ultimately. However, the same is included in 37.2 (i) above. The Company has filed objections against Arbitration award and same was listed before Honorable High Court of Delhi on 28.09.2022. The next date of hearing is fixed on 19.07.2023."

(v) Demand notice received from National Anti Profiteering Authority for H 5041.44 Lakhs:

IRCTC is a manufacturer of Rail Neer Bottled Drinking Water for exclusive sale to onboard passengers and at Railway Stations through 4owned plants(previous year 5 plants owned by company. Bilaspur plant converted to PPP Plant in FY 2022-23) and 12 Plants on PPP model. Post implementation of GST regime w.e.f. 01.07.2017, the tax liability on the product was reduced from 24 % (excise 12.5% (with abatement of 45%) VAT 12.5%) to 18% GST. Even though there was no reduction in GST rates subsequent to GST regime, the Anti profiteering Authority has observed that the benefit of tax has not been passed on to the consumer and as such issued notice for profiteering amount of H 5041.44 lakhs under section 171 of the CGST Act, 2017.

Rail Neer admittedly falls under controlled price segment like catering services at stations and on-board. It is also a fact that on the basis of various yardsticks, the price of the Rail Neer is regulated by Ministry of Railways. The present MRP of H15/- was fixed in the year 2012 through Railway Board Commercial Circular no. 72 of 2012. However the transfer price of Rail Neer is H 10 for 0-75 kilo meter, above 75 KM H 10.50 and Ex Rail Neer Plant H 9.33 fixed by Ministry of Railways. Despite an increase in cost of raw material, power and HR cost since the year 2012, Ministry of Railways continued to retain subsidised rate as a part of mandatory government functions and government objectives in supplying standardise Rail Neer at a lower

cost than the market rate. The authority appears to have misinterpreted section 171 of GST Act and there is every likelihood of dropping the show cause notice against the Central PSU, which is based on conjectures. The show cause notice has been contested by the Company and matter was argued in August,2022 but final order from Authority still awaited. No provision has been made for the said amount and the same is also not included in note 37.2 (i) above.

However, as per the notification No. 23/2022-Central tax issued on 23.11.2022(effective from 1.12.2022) by the Government of India, that the Competition Commission of India (CCI) which has been vested with powers to adjudicate all the cases in which benefit of tax reduction to consumers not being passed by the assesses on account of reduction in GST rates prior to implementation of GST Act. The proceedings under the notice issued by Anti Profiteering Authority, therefore, will now be concluded by CCI.

(vi) Kerala Government has fixed the MRP at H 13/- per 1 Ltr. Bottle of Rail Neer under Essential Commodity Act for selling in Kerala State and advised the Company to seU Rail Neer bottle at H 13/- instead of H 15/-. There is a stay of order against show cause and seizure vide order dated 27.4.2022 and stay is continuing. No further date has been fixed in this matter as yet. Since, the financial implication for the same is not ascertainable, the same is not included in note 37.2 (i) above of contingent liabilities.

(vii) The Company has received a show cause cum demand notice dated 18.10.2012 from the Directorate General of Central Excise Intelligence (DGCEI), Pune, in which the department has raised the demand of H 7902 lakhs (included in Note No.37 (2)

(i) above) on the ground that IRCTC has not paid the service tax on the various services covered under Renting of immovable property services, Outdoor Catering, business Auxiliary Services, Supply of tangible Goods and Rail Travel Agents.

As per the Department, IRCTC has leased out Food plaza, fast food units and various static units etc. to other catering/ vending contractor for which IRCTC has received license fees. According to DGCEI, service tax is payable on the said license fees under the service category of "Renting of immovable property".

In the opinion of the IRCTC, such services do not cover under the service category of ""Renting of immovable property"" services as the land is owned by the Indian Railways not by IRCTC and the purpose is to serve the passenger not to earn the profit. IRCTC filed an appeal before the CESTAT which is under process.

Meanwhile, In the financial year 2019-20. Constitutional validity of the services faU under the "Renting of immovable property" is challenged through a Special Leave Petition (SLP) by some other aggrieved assesses and the same had been admitted by the Apex court.

The last hearing on the above mentioned show cause notice was held on 08.05.2019 and the same is adjourned sine die. Same wiU be taken up by the CESTAT after the decision of the Honorable Supreme Court in the above mentioned SLP.

Refer Note 37.2 (iv) for right of recovery from Railways in case the Company is made liable to pay these claims ultimately and Note 87 regarding Ex-gratia/Performance related pay to the deputationists.

Note 38 Payment Gateways and Bank Reconciliations

"Company is handling Railway reservations through internet for which five payment gateways and more than thirty five Net banking / Debit card network of almost aU the banks are being used. The volume of transactions in aU these accounts is very huge and increasing day by day with increase in booking of tickets. In view of the above, transaction wise reconciliation can not be carried out in the Financial Year 2022-23.

However, there were some old PG accounts pertains to old site which were inoperative and pending for reconciliation due to some bank side/technical issues. Final reconciliation of the same is in process. Pending reconciliation, provision for doubtful of

H291.59 Lakhs (being 100% of debit outstanding) has been made during current Financial Year (31st March, 2022 H418.51 lakhs being 100% of net debit outstanding).

Note 39: Balance Confirmations

Trade Receivables

a. Railways Balances

The Railways balances in form of trade receivables, trade payables, advances paid and security deposits are subject to reconciliation and confirmation with the railways and includes old balances since the time of takeover of catering from the railways. The company is in the process of identifying and segregating the railway balances. No balance confirmation letters were sent to Railways/Government Bodies as their books are maintained on cash basis. The Company has created a provision of H 6740.52 Lakhs as on 31st March, 2023 (31 March'2022 H 5164.45 Lakhs) against receivables from Railways as per policy which in view of the management are doubtful of recovery.

b. Third Party Balances.

The third party balances are subject to confirmations and reconciliations from the various parties. The managment has started the process of obtaining balance confirmation from third parties w.e.f. financial year 2019-20 and shall ensure practice of formalizing the reconciliation procedure and confirmations on frequent basis. For FY 2022-23, the balance confirmation letters has also been sent to private parties but the response from the parties is not satissfactory. IRCTC has created a provision of H 7184.24 Lakhs as on 31st March, 2023 (31 March'2022 H 5936.22 Lakhs) against receivables as per policy which in view of the management are doubtful of recovery."

Other Payables and Bank Balances

These balances are subject to confirmations and reconciliations. Even though IRCTC has sent balance confirmation letters to these parties and certain banks but the response is not satisfactory.

Note :- 40 Capital Commitments

Estimated amount of Contracts remaining to be executed on capital account and not provided for amounts to H 25182.85 Lakhs as at 31, March 2023 as against H 8114.09 Lakhs as at 31 March 2022.

Note :- 41

In the opinion of Management, value of Current Asset, Loans and advances, if realized in the ordinary course of business, shall not be less than the amount at which the same are stated in the Balance Sheet. However, the balance of Trade Receivables/ Payables including Railway Trade Receivables and Trade Payables/other parties and bank balances as stated in the Balance Sheet are subject to confirmation and reconciliation.

Note :- 42 Employee Benefits

General description of the defined benefit schemes/defined contribution scheme:

(i) Gratuity: Payable on separation @ 15 days pay for each completed year of service to eligible employees who render continuous service of 5 years or more. The gratuity ceiling of H20 Lakhs has been considered for actuarial valuation. Actuarial valuation though was made for all employees irrespective of the completion of 5 years of service.

(ii) Leave Encashment: Leave salary is provided for based on valuations, as at the balance sheet date, made by independent actuary for present value of obligation without netting of fair value of plan assets.

(iii) Half Pay Leave: to eligible employees who have accumulated half pay leaves. Half pay leave is provided for based on actuarial valuations, as at the balance sheet date.

(iv) Leave Travel Concession(LTC) : to eligible employees is provided for based on actuarial valuations, as at the balance sheet date.

(v) Provident Fund: 12% of the Basic Pay plus Dearness Allowance of Employees and equivalent Contribution of the Corporation is contributed to the Provident Fund maintained with the Regional Provident Fund Commissioner, New Delhi. Corporation's contribution to provident fund is charged to revenue.

(vi) Foreign Service Contribution: Foreign service contribution payable for leave salary and pension in respect of deputationists (employees who have joined the corporation on deputation for a fixed period from Indian Railways or other government organizations) in terms of Government rules and regulations, is charged to revenue on accrual basis.

(vii) National Pension Scheme: Retirement benefits in the form of NPS is a defined contribution scheme. The company has no obligation, other than the contribution @10% of Basic pay plus dearness allowance payable under such scheme. The company recognize contribution payable to such scheme as an expense for the employees while in service.

(viii) Post Retirement Medical Benefit (PRMB): To eigible retired employees, provided for based on acturial valuation as at the Balance sheet date.

Impairment in value of investment has been made for the Company's share of investment i.e. H250.00 Lakhs as the cumulative tosses of RIRTL has wiped out its net worth. Further, the Balance Sheet of RIRTL for 2011-12 to 2022-23 have not been finalized pending dispute with M/s Cox and Kings (India) Ltd.

Note :- 45 Financial Reporting of Interest in Joint Ventures

The Company had formed a joint venture company with Cox & Kings Limited with 50-50 equal partnership in the name of Royal Indian Rail Tours Limited (RIRTL), by virtue of joint venture agreement dated 10th December 2008. However due to issues between the equity partners, IRCTC terminated the agreement with Cox & Kings Limited as on 12th August 2011, and also withdrawn the train from RIRTL.

The Company's share of ownership interest, assets, liabilities, income, expenses, contingent liabilities and capital commitments in the joint venture company as at 31st March, 2023 are not available in view of non-finalization of its accounts because of dispute between the parties, due to which the consolidation of Financial Statements as required under Ind AS 110 could not be done. These Financial Statements are the separate financial statements as per Ind AS.

"IRCTC has made an assessment on 31st March, 2023 for any indication of impairment in the carrying amount of Company's Property, Plant & Equipment (PPE), Intangibles and ROU assets. On the basis of such assessment, in the opinion of the management, no provision for the impairment of Property, Plant & Equipment and intangible assets of IRCTC is required to be made during the year. Further, as per the impairment assessment of the ROU Assets as on 31st March, 2023, all the assets are stated at less than its recoverable value. Further, impairment loss amounting H 122.97 Lakhs provided during Financial Year 2020-21 for Tejas express (Lucknow-New Delhi- Lucknow) trains, had been reversed during financial year 2021-22."

Based on present value of future profitability of Golden Chariot and Bharat Gaurav (earlier known as Buddhist Circuit Train) trains, no impairment of ROU is considered necessary by the management as on March 31, 2023 even though operations of these trains were in losses till March 31, 2023.

Note 50 Duty Credit License

During F.Y. 2021-22, the Company had received duty credit entitlements for Financial Year 2019-20 for an amount of H 164.85 Lakhs which had been accounted for as receivables during Financial Year 2021-22 in line with the policy of the Company under “Service Exports from India Scheme (SEIS)"" under Foreign Trade Policy, 2015-20.

The Foreign Trade Policy (FTP) 2023 is notified by Central Government, in exercise of powers conferred under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992) [FT (D&R) Act], as amended. The incentive scheme of duty credit entitlement is not there in the new policy and accordingly, no income is accrued during the year.

Note :- 51 Corporate Social Responsibility Expenditure

(a) Gross amount required to be spent by the Company during the year is H 1253.00 lakhs (Previous year H 990.00 Lakhs).

(b) Amount approved by the Board to be spent during the year H 1253.00 Lakhs (Previous year H 990.00 Lakhs).

(c) Details of amount spent during the year :-

Note 53 Bank Balances other than Cash & Cash Equivalents

IRCTC has availed overdraft facility for H 10,000 Lakhs (previous year H 10,000 Lakh) from State Bank of India against fixed deposit of H12,000 Lakhs (previous year H12,000 Lakhs. The OD facility shall be availed @ 0.25% higher than the interest rate on fixed deposit for the period for which OD is being availed. Fixed deposits to that extent are under lien.

Note :- 54 Railway Share

(a) License fees / service charges are shown at gross value and corresponding share paid/payable to Indian Railways have been shown as expense under note no. 27, 28, 29 & 33.2.

(b) As per MOU dt. 17.01.2007 signed between Railways & IRCTC, the sharing of revenue with Railways on Rail Nneer has been mentioned in category I “ Passenger amenities like management of stall, refreshment rooms at railway station, pantry car services, Rail Neer etc. where services are restricted to paid passengers and items for sale and tariff are determined and controlled by Railways. For this activity there is very limited scope of profit to the service provider.” In such case the revenue share is payable @ 15% of revenue earned by IRCTC. In case of departmental units, 15% of net profit to be shared with Railways by IRCTC.

Railway Board vide its Letter dated 20.07.2021, has raised the issue of Railway Share and asked the Company to pay Railway Share of all the Rail Neer Plants in accordance with the MoU dt. 19.01.2007.

In response to letter dated 20.07.2021, Company has represented on the same ground as done in past. However, the Railway Board has not accepted the contention of the Company and advised to share 15% of profit for Departmental plants and 40% revenue share in terms of Catering Policy 2017 for PPP plants being run by licensees vide letter dt. 30.09.2021. However, the Company contended that PPP Plants are not run on licensee model as these plants are set up by IRCTC and sale of Rail Neer takes place on the invoices of IRCTC only. The Company has now agreed to share 15% profit for all the plants including PPP plants and informed Railway Board vide letter dated 24.02.2022 and paid dues amounting to H 2713.32 Lakhs which was accepted by Railway Board subject to reconciliation. The company has recognised Railway Share amounting to H 546.60 Lakhs.@ 15% of profit of Rail Neer Segment for the financial year 2022-23. No Railway Share was recognised for the financial year 2021-22 due to loss in Rail Neer Segment on account of Railway Share of H 2713.32 Lakhs for previous years up to financial year 2020-21 charged against the profits of Rail Neer Segment during the financial year 2021-22.

Note :- 55 Capital Advances For Flats & Land

The following amounts were paid for Purchase/construction of flats and land which are still pending as on date:- H 635.98 Lakhs paid to Indian Railways in the year 2002-03/2006-07/2021-22/2022-23.

- H 90.32 Lakhs for purchase of flats from AIR INDIA LTD in FY 2018-19.

- H 20851.84 Lakhs paid to Ministry of Housing and Urban Affairs, Government of India for purchase of Office Space at New Delhi in 2022-23.

Note :- 56

(a) In terms of contract agreement of Rail Neer Plants under PPP model, Developer cum Operator (DCO) shall make payment of fixed amount of License Fee (LF) as stipulated in the agreement and IRCTC shall make Volume Shortfall Payments to DCO if actual dispatches in a year are less than Assured dispatch Levels stipulated in the concession agreement.

During the year ended 31st March, 2021, Executive Board (EB) of the IRCTC had decided that no shortfall compensation would be payable during the Covid-19 pandemic. The EB further decided that since this situation pertain to “Non Political Force Majeure” as provided in clause 16.2 of the agreement, licence fee benefit may be given on pro rata basis to the Developer Cum Operator (DCO), correlating with the actual production and installed capacity as per duly executed agreements.

The decision taken by the IRCTC was communicated to all DCOs. But certain DCOs have not accepted the decision of the Company. Accordingly, total amount of H 437.61 Lakhs (Financial Year 2020-21 - H 243.17 Lakhs& Financial Year 2021-22 -H 194.44 Lakhs)was providedfor during the year ended 31st March, 2022 as "Provision for Claims & Damages" towardsshortfall compensation calculated net of License Fee waived off in respect of dissenting DCOs who have not accepted the decision of EB.

Further, during the Financial year 2022-23, operations have become normal and therefore, shortfall compensation of Rs. 50.41 lakhs has been calculated and accounted for as per contract terms & condition of individual plant.

(b) As per the terms and conditions of the tender, in respect of 4 PPP Railneer plants, the Developer cum Operator (DCOs) are to be reimbursed the GST on sales net of Input Tax Credit (ITC) (earlier Excise-duty/VAT on sales net of CENVAT/ITC) availed

by them. The impact for the same amounting H 442.46 lakh has been accounted for in the financial year 2022-23 for the Rail Neer Plants for which ITC details was available. Further, due to non-availability of figures of ITC claimed by respective DCOs of 02 plants for the entire financial year 2022-23 and 01 plant for the month of March'2023, the same could not be estimated and accounted for in the financial year 2022-23.Similarly, the impact for the same amounting H 309.28 lakhs was accounted for in Financial Year 2021-22 except for one plant where figures of ITC claimed by the DCO were not available. These DCOs have represented against the claim of IRCTC for Input Tax Credit. The Company intends to take legalopinion on this matter from Ex-Additional Solicitor General (ASG) of India.Opinion on the issue is yet to be received. Necessary decision will be taken accordingly, after the receipt of the said opinion.

Note 57

During the Financial Year 2017-18, the Company had received H 1200 lakhs from Ministry of Tourism for Manufacturing of 3 Class Coaches on cost to cost basis out of which balance of H 121.66 Lakhs is refundabe to Ministry of Tourism.

Note :- 58 Segment Reporting

The CODM & Manager for corporate planning examines the business performance on the basis of the nature of the services rendered by the company, organization structure & internal reporting system and has identified five reportable segments of its business as foLLows:-

• Catering

• Rakneer

• Tourism & Train Operation

• State Teertha

• Internet Ticketing.

The corporation caters mainly to the needs of the domestic market. As such there are no reportable geographical segments.

The accounting principles used in the preparation of the financial statements is consistently applied to record revenue & expenditure in individual segments, as set out in the note of significant accounting policies.

Revenue and direct expenses in relation to segment are allocated based on items that are individuaUy identifiable to the respective segment while the remainder of the costs are categorized as unallocated expenses .The management believes that it is not practical to provide segment disclosure to these expenses and accordingly these expenses are separately disclosed as unallocated and adjusted only against the total income of the Corporation. The overaU percentage of such unallocable expenses to total revenue is not material.

Assets and Liabilities used in the company's business are not identified to any of the reportable segments as these are used interchangeably between segments. The company believes that it is currently not practicable to provide segmental disclosure relating to total assets and liabilities since a meaningful segregation of the available data could be onerous.

(i) Trade receivables are non-interest bearing and the customer profile include Ministry of Railways, Government of India, public sector enterprises etc . The Company's average project execution cycle is upto 12 months.

(ii) Contract assets is recognised over the period in which services are performed to represent the Company's right to consideration in exchange for goods or services transferred to the customer. Any amount previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

* Reduction in Contract Liablity is due to refunds given for advances received from Customers related to Unexpired concession fee, Unexpired License fee, advances against the package tours and on account of short term licensee contract for operation of special trains instead of long term licensee contract entered earlier.

Note 60 Capital management

The company objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going concern so that company can continue to provide maximum returns to share holders and benefit to other stake holders. Company does not have any borrowings as at 31st March 2023.

Further, company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. No changes were made in the objectives, policies or processes of managing capital during the year ended 31st March 2023.

a. The carrying amounts of trade receivables, trade payables, Short term Security Deposit, cash and cash equivalents and other short term receivables and other payables are considered to be same as their fair values, due to short term nature.

b. The fair value of long term security deposits were calculated on the cash flows discounted using current market rate of fixed deposits. They are classified as level-3 of fair values hierarchy due to inclusion of unobservable inputs.

c. Hitherto i.e. from the financial year 2016-17, the Company was accounting for the Security Deposit taken and given at fair value measurement as per Ind AS-109 (Financial Instruments) by discounting these at weighted average rate of interest of Fixed Deposit with banks and the same was being followed from financial year 2016-17 to financial year 2021-22. However, during the financial year 2022-23,the Company has reviewed all the Security Deposits taken and given with respect to their end dates and the same has now been recorded by treating these as new Security Deposit starting from the 01st April 2022.

Further, the Rate of discounting in respect of Security Deposit taken has also being changed from Weighted Average rate of Interest of fixed deposit with banks to the Company's Incremental Borrowing rate. Impact on account of above changes is not ascertained. However, the company has accounted for net income of Rs. 79.43 lakhs (Previous year H12.00 lakhs) on security deposit taken and incurred net loss of Rs. 0.07 lakhs (Previous year Rs. 0.26 lakhs) on security deposits given.

Effect on Profit & Loss Account due to reassessment of Security Asset-

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on recurring basis and at amortised cost

Note 62 Financial Risk Management

The Company's principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the company's operations and to provide guarantees to support its operation. The Company's principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors reviews and agrees policies for managing each of these risk, which are summarized below:-

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk and foreign currency risk. Financial instruments affected by market risk includes loans and borrowing, deposits and other non derivative financial instruments.

i) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the companies policies and risk objective. Financial instruments affected by interest rate risk includes deposits with banks. Interest rate risk on these financial instruments are very low as interest rate is for the period of financial instruments.

ii) Foreign Currency Risk

The company operates internationally. In view of low volume of foreign currency transactions, no material exposure exists from foreign currency risk arising form foreign currency transactions. Company does not hedge any foreign currency risk.

b) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, deposits with banks, financial institutions and other financial instruments. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

c) Financial Instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed in accordance with the company's policy. Investment of surplus are made only with approved counterparty on the basis of the financial quotes received from the counterparty.

d) Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they become due. The company manages its liquidity risk by ensuring , as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the company's reputation. The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company has no bank borrowings. The company believes that the working capital is sufficient to meet its current operational requirements. Any short term- surplus cash generated, over and above the amount required for working capital management and other operational requirements, are retained as cash and investment in short term deposits with banks. The said investments are made in instruments with appropriate maturities and sufficient liquidity.

1. The ECL provision on dispiuted receivables of H 1382.71 lakhs up to 03 years and H 380.24 lakhs up to 03 to 05 years for WVM contracts , in the event of non realization of claim from the licensee at the time of due settlement, liability to pay correspnding 40% Railways share shall also lapse. Hence, the provision has been made on 60% of the amount receivable by the company.

2. Disputed Receivables of H 341.19 lakhs upto 3 years and H 216.07 lakhs up to 03 to 05 years and H 1057.67 lakhs more than 05 years, includes outstanding claimes from Licensee's pertaining to increased license fee on sales assessment, on Tea and Coffee serving and hike in meal tariff rate. That in the event of non realization of claim from the licensee at the time of dipute settlement, liability to pay corresponding 45% Railways share (including maintenance charges) shall also lapse. Hence, the Provision has been made on 55% of the amount receivable by the company.

3. The ECL provision against disputed dues of one non railways party amounting of H 155.24 lakhs has been made with net of Security deposit H 88.71 lakhs. ECL provision made by H 66.53 lakhs

4. The ECL provsion for up to 03 to 05 years on undisputed receivable from Private party has been provided @ 50%(previous year 25%) and ECL provision for more than 05 years on undisputed receivable from Railways and Governement has been provided @ 100%(Previous year 75%). This resulted in increase in provision for doubtful debts by H 1071.52 Lakhs for the Financial Year 2022-23.

The followings are the key assumptions concerning the future, and the key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within next financial year.

a) Fair valuation measurement and valuation process

The fair values of financial assets and financial liabilities are measured using the valuation techniques including DCF model. The inputs to these methods are taken from observable markets where possible, but where this it is not feasible, a degree of judgement is required in arriving at fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

b) Taxes

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which losses can be utilized Significant management judgement is required to determine the amount of deferred tax asset that can be recognized, based upon the likely timing and level of future taxable profit together with future tax planning strategies.

c) Defined benefit Obligations

Employee benefit obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date

d) Useful lives of property, plant and equipment

The estimated useful lives of property, plant and equipment is as given in the Note 2(n). Estimated useful lives of property, plant and equipment are based on number of factors including the effects of obsolescence, demand, competition, and other economic factors The Company reviews the useful life of property, plant and equipment at the end of each reporting date.

e) Leases

Company uses its judgement in determining whether or not contract contains a lease, extension option of the lease agreement and termination option of the lease agreement will be exercised or not. For the land on lease from the railways refer Note No. 2 (i) (h) to estimate the future lease term.

The Company is engaged in the operations of the trains received from the Zonal railways on haulage charge principle basis. The income from the operations of the special train includes the basic fare collected from the passengers, catering charges and other charges as fixed by the Company. The income from operations of trains is recognized over the period of time of the operations of the train as per the requirement of the Ind AS-115.

Note :- 66 Ticket Deposit Receipt Refund (TDR) Cases

The TDR refund is made by the Company to the passengers after receipt of the same from Indian Railway. As on 31st March 2023, number of cases pending were 59582 (previous year 25614) with value of H 726.40 lakhs (Previous year H 232.48 Lakhs).

Note :- 67 Railneer Plants on PPP Model

In addition to 4 nos. of self operated Rail Neer Plants(previous year 5 self operated Rail Neer Plants. Bilaspur plant converted to PPP Plant in FY 2022-23), 12 nos. of Rail Neer Plants are operational at various locations on PPP model. Four more Rail Neer Plants are under construction/commissioning stage and commercial production at these Rail Neer plants will start in coming years. For these plants, a capital support will be provided by IRCTC to the contractors as per the contract agreement with the respective plant operators.

Note :- 68 Capital Exepnditure

The company has incurred Total Capital Expenditure of H 23,863.60 lakhs including CWIP and Capital Advances but excluding ROU assets ( previous year H5199.07 lakhs) .

Note :- 69 CBI Inquiry against Ex-Railway Minister

The company does not foresee any financial liability with regards to the CBI Enquiry against the Ex-Railway Minister involving the Ex-Senior Official of IRCTC as per reports in the media.

Note:- 70 GST Input Tax Credit

GST Input Tax Credit (net of amounts appearing on GST portal & GST Return 2B) as on 31st March, 2023 amounting to H 921.13 Lakhs (previous year H 433.52 Lakhs) included in "Balances with Government Authorities" in Note 12 is pending for credit in GSTR 2B as on date.

Note :- 71 Employee advances

The employee advances are paid to avoid genuine employee hardships to meet official expenses. The expenses are reimbursed to the employees separately subsequently. Accordingly although the advances are non-refundable until employment, the same have not be discounted and deemed as current in nature.

Note:-72 Setting up, Opration & Maintenance of Railneer Plants

IRCTC has entered into in agreement with private parties “the operator" wherein operator is responsible for Set Up (Building & Plant Machinery), Operation and Maintenance of water treatment Plant on the land owned by IRCTC against consideration for procurement of Rail Neer, CFA and Transportation services by IRCTC. Terms of agreement provides that at the end of contract period the commissioned assets at plant along with building shall be transferred to IRCTC. Since the contract for such O & M Contractor is tendered and selection is made based on commercial bids, in absence of sufficient information to ascertain the additional consideration towards cost of building and plant and following conservative approach, assets has not been recognized. Accordingly, such assets shall be accounted for in the books of accounts based on technical assessment at the time of takeover.

Note:-73 License Fee on Water Vending Machines

That Licensee Fee as per Note 27, includes contingent provision of 25 % Railway Share (15% as per Circular 36/2015) against license fee received on Water Vending Machines, pending clarification from the Railway Board under the Catering Policy 2017.

Notes 75 Leases a) Company as a Lessee

The Company as a lessee has entered into various tease contracts, which includes lease of land, office space, and vehicles. Before the adoption of Ind AS 116, the Company classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease.

The Company also has certain leases of offices and guest house with lease terms of 12 months or less. The Company applies the ‘short-term lease' recognition exemptions for these leases.

Right of Use Assets

The carrying amounts of right-of-use assets recognised and the movements during the year are disclosed in Note 5B.

The Company has several lease contracts that include extension and termination options. These options are negotiated by management and align with the Company's business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised.

Gain/loss from sale and leaseback transactions is not applicable to the Company.

b) Company as a Lessor

The Company has given its Assets on the leases, details of the same are given under the Note 5 Investment Property. Lease Rental recognized as income during the year is H 234.98 Lakhs (Previous year H 234.98 Lakhs)

Railway Board had mandated IRCTC to operate 02 rakes of Tejas trains and 01 rake of Kashi Mahakal express trains as passenger trains to provide passenger with an option of travelling in premium segment private trains. IRCTC has inaugurated both the trains on 4th Oct, 2019 and 17th Jan,2020 on the sector Lucknow -New Delhi-Lucknow and Admedabad -Mumbai-Ahmedabad respectively.

In the financial year 2020-21, both Tejas trains have been run from the month of October, 2020 and stopped due to the COVID -19 pandemic and suspension of passenger's trains services. The representations have been made to Railway Board for waiver of fixed commitments against both Tejas and Kashi Mahakal trains for the non operational period during the financial year 2020-21 due to present pandemic. Railway Board vide letter no TC-II/2910/20/Trains dated 11.5.2021 has only agreed to waive off the component of ""loss of paths to Good trains"" in calculation and charging of fixed cost for IRCTC passenger trains for non -operational period up to 31.12.2020 and has decided that other charges applicable will remain the same. IRCTC has again requested Railway Board to reconsider waiving off the fixed charges (fixed haulage and Custody charges) amounting to H 2793 Lakhs for non-operational period of the three trains considering it as a force majeure situation, as the lockdown and restriction imposed by Government of India due to COVID-19 pandemic was beyond control of IRCTC. However, IRCTC has made full provision for the fixed charges for both the Tejas trains and Kashi Mahakal express trains train in the Financial Year 2020-21. Further, during the current year, Railway Board vide letter no TC-II/2910/2019/Trains by IRCTC (E-3344610), New Delhi dated 06.01.2023 has further allowed waiver off amounting H 174.91 lakhs relating to Tejas trains on account of Custody and Fixed Haulage charges out of H 2793 Lakhs. The said amount is included in Excess Provision Written Back under Exceptional Items (refer note no.33) during the year. "

Note :- 77 The Company has applied for advance ruling for following issues for which decision of AAR is still awaited:

1. Reimbursement of Service Charges: The Government of India through Ministry of Railways, in the public interest had waived off the service charges from the passengers for booking of online train tickets through IRCTC's website. The Government of India has reimbursed consolidated amount of H 8000 Lakhs, H 8800 Lakhs and H 3227 Lakhs for the 2017-18,2018-19 and 2019-20(up to July-19) respectively. Section 15 (2) of CGST Act 2017, excludes the amount of reimbursement of expenses received from the Central Government and State Governments from the value of taxable supply, hence the amount received from the Indian Railways being the Central Government towards the reimbursement of expenses incurred for the providing of same should not be charged to GST. Therefore no GST was paid by IRCTC for above reimbursement.

2. Reimbursement of Travel Insurance: The Government of India has decided to provide travel insurance on free of Cost to the passengers who have booked the train ticket through online to promote digitalization. Accordingly, IRCTC provided the Insurance free of Cost for which Ministry of Railway had reimbursed the travel insurance of H 4700 Lakhs on which no GST was paid by the Company being reimbursement of expenses received from the Central Government.

3. MDR Received from Acquirer Banks. The IRCTC has received H 300 Lakhs in FY 2019-20 from Acquirer Banks towards its share of MDR charges being rate or fee charged on the merchant service providers The Company has treated this payment as subsidy and no GST was paid on the aforesaid amount, as subsidy received from Central Government and State Governments shall be excluded from the value of supply and same shall not form part of consideration for the purpose of levying GST.

4. The IRCTC has received pro-rata Licensee fees from Indian Railways for taken over of catering of SBD trains in the terms of Catering Policy, 2017 of H 1385 Lakhs, H 7058 Lakhs, H 125 Lakhs for the years 2017-18, 2018-19 & 2019-20 respectively and no GST was paid on the aforesaid amounts in view of the fact that the GST is not applicable on the aforesaid amount as it was received from Licensee by the Indian Railways prior to Introduction of GST and service tax was not applicable on the grant of licence for payable to Indian Railways as per Finance Act at the time of its receipt. The proportionate amount paid by Indian Railways to IRCTC is towards the remaining part of the tender period which was awarded prior to the implementation of GST. The assigning of

licence by Indian Railways to its subsidiary i.e. IRCTC does not change the nomenclature of the transaction as the licence has been awarded prior to the implementation of GST. The incidence of tax is the event when the service is provided/supplied to the service recipient. Thus, the Service being “grant of licence” was provided by Indian Railways at the time when the licence was awarded.

Note 78 Status of SBD contracts

(a) In pursuant to the Catering Policy-2017 issued by Ministry of Railways, IRCTC has been mandated to take over the mobile units contracts over Indian Railways. Accordingly, IRCTC has takeover 184 contracts from Zonal Railways by executing tripartite agreement between Zonal Railway, IRCTC and Licensee. As on 31.3.2023 the status of SBD contracts are as under:-

(b) Further, pursuant to the instructions issued by Railway Board dated 23.02.2021, IRCTC vide letter dated 02.03.2021 &

04.03.2021 has terminated all the existing SBD contracts under IRCTC.

(c) The said decision was assailed by way of filing WP 6253 and 6254 of 2020 by Catering Associations and the Hon'ble High Court of Madras quashed the termination orders. The said decision was challenged by way of WA 1895 and 1896 of 2021 wherein Hon'ble High Court has directed to maintain status quo. Solicitor General is representing RB and IRCTC in the WA and is yet to be listed.

(d) Railway Board further vide letter no. 2020/Catering/600/05/Pt. dated 19.11.2021 has advised that a review has been conducted by the Board regarding catering services in trains in light of prevailing factors such as the pandemic witnessing a declining trend, resumption of cooked in restaurants, public eateries and airline and assessment of passenger demand, Board has decided that service of cooked food be resumed and RTEs may also continue.

(e) Vide letters no. 2019/Catering/600/04 dated 19.11.2021, Railway Board has advised for vacation of status quo order and withdrawal of Appeals no. 1895 and 1896 of 2021 before the High Court of Madras and has withdrawn Board's letter dated

23.02.2021 for termination of all existing contracts of mobile catering involving scope of work of providing cooked food to passengers.

(f) Accordingly, in compliance to the above Railway Board's orders, IRCTC has issued letter for withdrawal of terminations vide letters dated 21.11.2021.

Note :- 79

Ministry of Railway vide commercial Circular no. CC-60 of 2019 has increased the catering tariff for post and pre-paid trains. As per the tender clause the existing License fees will be increased on the basis of sales assessment on account of increase in catering tariff. The sales assessment was not done in the previous years due to Pandemic. After the resumption of regular trains services, company has started the process of sales assessment during the year 2022-23 and sales assessment has been completed for all pre-paid trains and of peak season for post paid trains. The sales assessments for lean season in case of post paid trains are still under finalization. Further, company has started to raise demand notices for increased License fee for prepaid trains but some of the licensees have challenged company's decision of increased License fees in Hon'ble High Court of Mumbai. As the matter is sub- judice and there is an uncertainty and occurrence is dependent on outcome of certain event in future, hence the impact of increase in License fees for pre-paid trains has not been recognized in the financial statement for the financial year 2022-23.

Note :- 80

The menu and tariff of standard meals/items is controlled by Railway Board and these were revised & enhanced vide CC-64 dated 12.12.2019. As per the instructions, these were to be implemented with immediate effect and as an interim measure, sales assessment in limited units was undertaken to assess the impact of enhancement in License fees. Accordingly, guidelines were issued on 28.01.2020 for incorporating the impact of enhancement in license fees by adding the weightage assigned to the License fees of the unit or by undertaking sales assessment within 6 months, whichever is higher. However, unforeseen COVID pandemic started and lockdown was imposed due to which passenger train operation and stations operations for passengers were suspended by MoR w.e.f 23.03.2020.

The static units at stations were closed and due to lockdown followed by severe restrictions as per Govt. instructions, the sales assessment of the units could not be conducted. The temporary passenger train operations started w.e.f. 01.06.2020. Only limited (PAD & RTE) items were permitted for sale @10% license fee w.e.f. 01.06.2020. However, this was limited to few stations only as passenger movement at most of the stations was restricted due to local restrictions.

On 20.01.2021 guidelines for charging reduced license fees@20% of license fees were issued due to prevailing impact of COVID. Further, on 04.10.2021 revised guidelines were issued to implement the reduced License fees @ 20% up to 31.10.2021 and new methodology was implemented for charging of LF w.e.f 01.11.2021 based on footfall. The interim method was followed for ongoing contracts till 31.05.2022. Instructions were issued for charging 100% license fee w.e.f. 01.06.2022.

The sales assessment for all the static units has been completed in the financial year 2022-23. But some of the licensees have challenged the company decision on enhanced LF in the Hon'ble High Court of Kerala(WP(C) WP 26745/20,WP26795/20,WP26 721/20,WP26703/20.

As the matter is sub- judice and there is uncertainty and occurrence is dependent on outcome of certain event in future, hence the impact of increase in License fees for Static units has not been recognized in the books of account for the financial years 2022-23. However, following the conservative approach, the negative (refund) impact on License fees of H 94.54 Lakhs (Net of Railway share) has been recognized in the books of account.

Note -81 Leave Encashment (Refer note 30, 37.1, 42 and 52)

The Company has invested in a policy with LIC of India since the year 2017 for funding the encashment of earned leave for its employees. Hitherto i.e. till the financial year 2021-22, the same has been treated as “Planned Assets” in actuarial report for leave encashment and accordingly, provision for leave encashment during the year was shown net of interest income earned on the said investment. However, during the Current year, the Company has taken a view that the amount invested in the said policy is in the nature of investment as the proceeds on account of surrender of policy can be utilized for any purpose and not restricted to use only for funding of leave encashment as per the terms of policy.

Accordingly, w.e.f. current financial year, the interest earned on investment has been booked as income and accordingly, Leave Encashment Expense has been booked separately without netting of interest income. The interest earned and expenses recovered by LIC of India upto 31st March, 2022 amounting to H 1257.79 Lakhs and H 100.87 Lakhs respectively have been booked as prior period income & Prior period Expense and accordingly, the expense on leave encashment has also increased by H 1156.92 Lakhs. However, there is no impact on Profit Before Tax for the year.

For the current Financial Year 2022-23, net income on account of Exceptional items amounting to H 2720.00 Lakhs includes: (i) H 1198.59 Lakhs being excess provisions written back for previous years relating to Performance Related Pay (PRP), (ii) H 1085.74 lakhs being excess provisions written back for previous years relating to Maintenance & Development charges for Internet Ticketing and (iii) H 435.67 Lakhs being excess provisions written back for previous years relating to various other expenses.

For the Financial Year 2021-22, net expenses on account of Exceptional items amounting to H 400.45 Lakhs includes: (i) H 2248.54 Lakhs being excess provisions written back for previous years relating to Performance Related Pay (PRP), (ii) H 2713.32 lakhs being expense on account of Railway share on Railneer plants up to 31.3.2021 (Refer note 54) and (iii) H 64.33 Lakhs being excess provisions written back for previous years relating to various other expenses.

Note :- 84 Integration Charges

Upto Financial Year 2020-21, the Integration charges (Non-Refundable one-time) received from booking agents for providing connectivity with the Company's Portal for railway ticket online booking were recognized as revenue over the initial contract period of one to three years, since the company contended that the renewal is unilateral at the option of the Company. However, during the F.Y. 2021-22, Company has recorded income from integration charges over the expected contract period (estimated 20 years on the basis of past experience), since Company estimates that these contracts for integration and annual maintenance charges are generally being renewed by the Company, and therefore these can't be treated as distinct contracts and accordingly, income from integration charges should be recognized over the expected contract period (estimated 20 years) as per the requirements of Indian Accounting Standard 115 (“Ind AS”) on “Revenue from Contracts with Customers”. This change in accounting treatment/policy had resulted into reduction of profit by H342.27 lakhs (net of deferred tax of Rs. 115.13 Lakh) for the year ended March 31, 2022 and other equity comprising of retained earnings as at March 31, 2020 is reduced by H 1325.70 lakhs (net of deferred tax of H 445.91 Lakhs).

(A) Identification/Reconciliation/Adjustment of legacy items representing old debit and credit balances and certain differences between control and subsidiary balances is in progress. Further, the system of classification/identification of liabilties as trade payables and the aging of payables/recievables including linking of payments made/received against invoices received/raised will be revisited and improved in FY 2023-24

(B) Identification and classification of MSME into Micro, Small and Medium is a continuous process and the same will be reviewed and improved during the financial year 2023-24.

Note :- 86 Fine imposed by Railways

Ministry of Railways Vide letter no. 2009/TG-III/631/2 Pt. dated 23.2.2023 has mentioned that non-availability of catering services in the trains even after 03 days from the date of intimation by the Zonal Railways, shall attract a fine of Rs. 01 lakh per day till the services commence. The Company has represented to Ministry of Railways that it is difficult to implement the above instructions due to non participation in tenders for TSV trains majorly because of rampant unauthorized vending beyond the control of IRCTC. Further, there are many overnight trains which originate and terminate at such hours (After Dinner & before Breakfast stipulated meal time) that for such trains catering services are not feasible. The Company has requested Ministry of Railways to review the above instruction keeping in view the facts stated in this regard. Response from Ministry of Railways is awaited. Appropriate decision will be taken as and when response is received from Ministry of Railways. Amount of fine till 31 March, 2023 is neither ascertained nor any demand from Zonal Railways received till date.

Note :- 87 Ex-gratia/Performance related pay to the deputationists

Ministry of Railways vide letter number 2023-BC-PP-05/2021-22 dated 09.01.2023 has sent provisional Para no 05 issued by C&AG to the company on payments of ex-gratia/Performance related pay to the deputationists and requested to send comments on the provisional Para. this Para C&AG has commented that the payments of ex-gratia either in lieu of PRP or as pay parity to employees on deputation on CDA scale was in violation of the DPE and DoPT instructions, and thus inadmissible. Further C&AG have recommended that the payment of ex-gratia/PRP to the deputationists to be stopped and to ensure recovery of the inadmissible payments of H 230.13 Lakhs made to deputationists. The Company has sent detailed reply to Ministry of Railways on dated 24.01.2023 in which company has requested that the performance award paid to the deputationists is not in violation of the DPE and DoPT instructions. The amount of performance award paid to deputationists is a form of incentive to boost the morale of the employees and to retain them with the company. As on date no further communication has been received from Ministry of Railways by the Company. Appropriate decision will be taken on this matter as and when response is received from Ministry of Railways. In the meantime , no such provision has been made for the financial year 2022-23 and existing provision (net of interim payments made) for financial year 2021-22 of H 30.65 lakhs has been written back as on March 31,2023.

Note :- 88 Disclosures required under Ind-AS and Schedule III of Companies Act,2013 (as amended)

The Company has made the disclosures at appropiates place regarding the relevant items or transactions of balance sheet and statement of profit and loss. Any non-disclosure is due to non occurrence of related transaction.

Note 89 Borrowings

The company has not taken any borrowings from banks and financial institutions during the year.

Note :- 90 Other Regulatory Information

(i) The Company do not have any Benami property. Accordingly, no proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder. Accordingly, no disclosure is required to be given.

(iii) The Company do not have any charges or satisfaction which are yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries"

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries"

(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

(ix) The company has no subsidiaries. Accordingly, provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, is not applicable.

(x) The Company has not revalued any of its Properties, Plant & Equipment (Including right of use assets) and intangible assets during the Financial Year 2022-23.

(xi) The Company has not granted any loans or advances in the nature of loans to promotors, Directors, KMPs and the related parties during the Financial Year 2022-23.

Note 91 Standard/Amendments issued but not yet effective

MCA had issued the Indian Accounting Standards Amendments Rules, 2023 vide notification dated 31st March 2023. In the Indian Accounting Standards Amendments Rules, 2023, amendments has been made in following standards:-

1. First-time Adoption of Indian Accounting Standards (Ind AS-101)

2. Share Based Payment (Ind AS-102)

3. Business Combinations (Ind AS-103)

4. Financial Instruments: Disclosures (Ind AS-107)

5. Financial Instruments (Ind AS-109)

6. Revenue from Contracts with Customers (Ind AS-115)

7. Presentation of Financial Statements (Ind AS-1)

8. Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS-8)

9. Income Taxes (Ind AS-12)

10. Interim Financial Reporting (Ind AS-34)"

The effective date of these amendments is annual periods beginning on or after 1st April 2023. The Company is currently evaluating the impact of the amendments and has not yet determined the impact on the financial statements.

Note :- 92 Re-grouping of figures for previous years

The figures for the previous year have been regrouped/reclassified/restated, wherever considered necessary. However, due to commencement of normal operations after lifting of COVID-19 restrictions, most of the previous year figures are not comparable with the current year figures.

Note :- 93 Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on 29th May, 2023.