2009-10 TO 2019-20 2
4
AND 5
6
MANAGEMENT REPLY THERETO 9
16
81
87
90
91
98
99
103
132
147
158
236
261
339
340
1
Shri VINAY SRIVASTAVA
Executive Director (PSU)
Shri KAPIL MOHAN Shri AMIT SATIJA
Principal Secretary (IDD) Secretary (Transport) &
Ex-Ofcio Joint Secretary
(Transport)
Part-time Non-Official Independent Director
AIR MARSHAL SUKHCHAIN CA. MOSALI DEVARAJA PROF. DR. R. SRINIVASAN
SINGH, AVSM VSM (RETD.) REDDY
Independent Director
Independent Director Independent Director
2
SHRI SUBHASH CHAND GUPTA
VACANT
VACANT
SHRI VINAY SRIVASTAVA
SHRI KAPIL MOHAN
Principal Secretary (IDD)
SHRI AMIT SATIJA
AIR MARSHAL SUKHCHAIN SINGH, AVSM VSM (RETD.)
CA. MOSALI DEVARAJA REDDY
PROF. DR. R. SRINIVASAN
GOI223738
3
2009-10 2019-20
2009-10 TO 2019-20
India &
India)
(22 + 25)
1.00 1.00
4
5
NOTICE OF THE THIRTIETH ANNUAL GENERAL MEETING OF
THE MEMBERS OF KONKAN RAILWAY CORPORATION LIMITED
Notice is hereby given that the 30th (Thirtieth) Annual General Meeting of the Members of Konkan Railway
Corporation Limited will be held on Monday, 14th December, 2020 at 14:30 hrs. through Video Conferencing
(“VC”) to transact the following businesses:
ORDINARY BUSINESS:
ITEM NO.1 ADOPTION OF FINANCIAL STATEMENTS
To receive, consider and adopt the Audited Financial Statements (Standalone and Consolidated Financial
Statements) of the Company for the nancial year ended March 31, 2020, the reports of the Board of Directors
and Auditors thereon.
ITEM NO.2 FIXATION OF REMUNERATION OF STATUTORY AUDITORS
To x the remuneration of the Statutory Auditors appointed by the Comptroller & Auditor General of India for
the year 2020-21.
SPECIAL BUSINESS:
ITEM NO.3 BORROWING LIMITS OF THE COMPANY
To consider and if thought t, to pass with or without modication(s) the following resolutions as Special
Resolutions:
“RESOLVED THAT in supersession of the resolution passed at the Extra-Ordinary General Meeting of the
Company held on 11/12/2015 and pursuant to the provisions of section 180 (1) (c) and other applicable
provisions, if any, of the Companies Act, 2013, the consent of the Shareholders be and are hereby accorded to
the Board of Directors of the Company for borrowing from time to time as they may think t, any sum or sums of
money not exceeding `5000 Crore (Rupees ve thousand crore only) or 4 times of the paid up equity share
capital, whichever is less, including the money already borrowed by the Company exceeding in aggregate, for
the time being, of the paid up capital of the Company and its free reserves, that is to say, reserves not set apart
for any specic purpose.
RESOLVED FURTHER THAT pursuant to Section 180(1)(a) and other applicable provisions, if any, of the
Companies Act, 2013, as amended from time to time, the consent of the Shareholders be and is hereby
accorded to the Board of Directors of the Company to mortgage and/or create charge on all or any of the
movable and immovable properties, present and future, of the Company and to create such mortgage/charge
in such form and manner as the Board of Directors may determine for the purpose of securing the lenders of
the Company.
RESOLVED FURTHER THAT the Board of Directors of the Company or any duly constituted Committee of
the Board or Shareholders Committee or such other authority as approved by the Board be and are hereby
authorized to Do, From Time to time, all such acts, deeds and things as may be deemed necessary.”
Belapur, Navi Mumbai
20.11.2020
6
NOTES :
1. In view of the prevailing COVID-19 pandemic, the Ministry of Corporate Affairs (the “MCA”) vide its
General Circulars No. 14/2020, No. 17/2020 and No. 20/2020 dated April 8, 2020, April 13, 2020 and May
5, 2020 respectively (hereinafter, collectively referred as the “MCA Circulars”) has allowed companies to
conduct their Annual General Meetings through Video Conferencing (“VC”) or Other Audio Visual Means
(“OAVM”), thereby, dispensing with the requirement of physical attendance of the members at their AGM
and accordingly, the 30th Annual General Meeting of the Company will be held through VC or OAVM in
compliance with the said circulars and the relevant provisions of the Companies Act, 2013(the “Act”) (as
amended) and Rules made thereunder. Members attending the AGM through VC or OAVM shall be
counted for the purpose of reckoning the quorum under Section 103 of the Act.
2. In terms of the MCA Circulars, the requirement of sending proxy forms to holders of securities as per
provisions of section 105 of the Act has been dispensed with. Therefore, the facility to appoint proxy by
the members will not be available and consequently, the proxy form and attendance slip are not annexed
to this notice convening the 30th AGM of the Company.
However, in pursuance of Section 112 of the Act and Rules framed thereunder, the President of India and
the Governors of participating States of Maharashtra, Karnataka, Goa and Kerala are entitled to appoint
authorized representatives for the purpose of participation and e-Voting during the AGM, through VC.
3. Record date for closure of Register of Members and Share Transfer Books of the Company will be 4th
December, 2020.
4. The Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 and Rules framed
thereunder, which sets out details relating to Special Business at the meeting, is annexed hereto.
5. In accordance with the MCA Circulars, the Notice along with the Annual Report of the Company for the
nancial year ended March 31, 2020, can be sent only through e-mail. The Notice and the Annual Report
for the nancial year ended March 31, 2020 shall be available on the websites of the Company viz.,
www.konkanrailway.com.
6. The link to attend the AGM through VC will be intimated to the members prior to the date of the AGM.
7. All documents referred to in the accompanying Notice and the Explanatory Statement shall be made
available for inspection by the Members of the Company up to and including the date of AGM. Members
desirous of inspecting the same may send their requests to [email protected].
8. Kindly note that , under section 103 of Companies Act, 2013, if at the expiration of half an hour from the
time appointed for holding the meeting, a quorum (i.e. minimum 5 members personally present other
than proxy) is not present, the meeting shall stand adjourned to the same day in the next week or if that
day is a public holiday, until the next succeeding day which is not a public holiday, at the same time and
place or to such other day and at such other time and place, as the board may determine, and if at such
adjourned meeting a quorum is not present at the expiration of half an hour from the time appointed for
holding the meeting, the members present shall be the quorum, and may transact the business for which
the meeting was called.
7
EXPLANATORY STATEMENT IN RESPECT OF SPECIAL BUSINESS PURSUANT TO SECTION 102 OF
THE COMPANIES ACT, 2013
ITEM NO. 3: BORROWING LIMITS OF THE COMPANY
1. At present the Company can borrow up to ` 3200 Crore or 4 times of the paid-up equity share capital,
whichever is less. This borrowing power was vested on the Company with the approval of Shareholders
at the Extra-ordinary General meeting held on 11/12/2015, in terms of Companies Act, 2013.
2. The total debt of the Company as on 31/03/2020 stands at ` 2950 Crore (Bond issue of ` 1750 Crore + `
1200 Crore Rupee Term Loan facility raised for route electrication and Roha-Veer doubling).
3. The Company is undertaking various capital-intensive projects in India and abroad. Also, Company is in
process of biddings for various infrastructure Projects in India mostly in road and railway tunneling/
bridge works and other works; for which it is expected to have better liquidity for working capital at any
given time.
4. The Company has proposed for major capacity increase which includes doubling of 141 Km in patches
and 18 new crossing stations on Konkan Railway route which would cost approximately ` 4460 Crore
out of which 50% of the cost of the Project would be expected to be borne by the Shareholders through
Equity and the remaining amount would be met through market borrowings. The proposal is awaiting
Cabinet approval and presently being studied by Finance Ministry . Once the proposal is cleared, the
Company shall require to borrow ` 2230 Crore (50% of ` 4460 Crore) from the market for said Project.
5. Considering the future requirement of funds (Equity as well as Debt), the Company has increased the
Authorised share capital from ` 806 Crore to ` 4000 Crore Similarly, to have reasonable nancial
leverage, the borrowing limit has been xed at only 4 times of the Paid-up Equity Share Capital. The
Paid-up Equity Share Capital as on 30/06/2020 is ` 1312.45 Crore. Therefore, borrowing limit has been
proposed at ` 5000 Crore (viz. appx. 4 times of Paid-up Equity Share Capital).
6. Further, the Covid-19 Pandemic lockdown has affected the nancials of the Company adversely
including its working capital requirements therefore, to tide over the crisis Company may resort to short
term borrowings from the market.
7. For increasing the borrowing power of the Company, special resolution is to be passed at the
shareholders meeting as per section 180 (1)(c) of the Companies Act, 2013. The Board of Directors at its
158th meeting held on 05/07/2019 had approved and recommended for approval by the Shareholder to
the proposal of increasing the borrowing power of the Company. Further, in terms of General Circular No.
20/2020 dated May 5, 2020 issued by the Ministry of Corporate Affairs, the matter (regarding borrowing
power of the Company) is considered unavoidable by the Board. Accordingly, the special business is
being proposed before the Members of the Company for their approval.
8. None of the Directors and Key Managerial Personnel are interested or concerned in the above
resolutions. Therefore, the Board of Directors commend the above resolutions.
8
Dear Shareholders,
It gives me immense pleasure to extend to you all a heartfelt warm welcome to the Thirtieth Annual
General Meeting of your Corporation. I take this opportunity to highlight the performance of the
Corporation as well as major works completed during the year.
1.0 FINANCIAL PERFORMANCE
1.1 The performance of your Corporation for the year 2019-20 has been covered in detail in the
Directors' Report. I would like to inform you that the total revenue for the nancial year 2019-
20 was ` 2735 crore as compared to ` 2899 crore of 2018-19. The Corporation had a net prot
of ` 6 crore during the year under review as compared to the prot of ` 99.73 crore (gure
restated) in the nancial year 2018-19., Corporation suffered a revenue loss of ` 70 crore due
to Covid-19 pandemic lockdown and incurred expenses of ` 0.22 crore during lockdown
period toward preventive health measures till 31/03/2020. Further, the pandemic has very
adversely impacted the revenue in the Current nancial year.
1.2 The net worth of the Corporation as on 31st March, 2020 stands at ` 1892 Crore (Rupees one
thousand eight hundred ninety two crore).
1.3 During the year 2019-20, the Corporation redeemed Bonds worth ` 120 Crore (Rupees one
hundred twenty crore) and issued fresh Bonds worth ` 120 Crore (Rupees one hundred
twenty crore) on Private Placement basis, for meeting redemption liability.
9
1.4 2nd Rights issue of ` 196 Crore has been fully subscribed by all the Shareholders in
proportion to their existing shareholding. It was done to fund various essential Safety works ,
which are all in progress.
1.5 3rd Rights issue (equity shares) of ` 490 Crore was offered to the Shareholders in proportion
to their existing shareholding. This has been necessary to undertake Complete Track
Renewal work of 205 Kms. As on date, the Ministry of Railways has paid ` 106.71 Crore out
of its total subscription amount of ` 249.90 Crore (i.e. payment of 42.70% of its total
subscription). Govt of Kerala has fully paid and Govt of Maharashtra has partly paid. All
Shareholders have been requested to make full payment to the 3rd Rights Issue. We hope to
receive full subscriptions from all the Shareholders shortly. Tendering for the work has been
initiated.
I would like to specially thank all the Shareholders for reposing faith in the Corporation which
is providing service to the participating States of KR and the Nation as a whole.
1.6 The Corporation has achieved “Good” rating in MoU targets set with the Ministry of Railways
for the nancial year 2018-19.
It is expected that for nancial year 2019-20; it will be “Fair”.
2.0 OPERATING PERFORMANCE
2.1 On an average 50 pairs of Mail Express and Passenger Trains were run per day over KR
route during the nancial year 2019-20. The passenger earnings during the nancial year
was ` 681 crore registering a decrease of 1% over the corresponding revenue of `687 crore
of last year.
2.2 On the freight front, on an average, 12 freight trains were run per day including Roll on - Roll
off (RORO) services during the nancial year of 2019-20. The freight earnings during the
nancial year was ` 446 crore, which is 22% less than that of previous year's ` 569 crore.
2.3 Freight Initiatives:
a) Imported fertilizer trafc from Ratnagiri has taken shape during the nancial year 2019-20
and is expected to continue in future. The fertilizer trafc imported at Jaigad Port is loaded
from Ratnagiri station to various parts of the Maharashtra and Karnataka. During the
nancial year, 88 fertilizer rakes (233512 Ton) are loaded from Ratnagiri fetching KRCL an
originating earning of ` 34.65 Crore.
b) Siding for Mangalore Renery and Petrochemicals Ltd. (MRPL) at Thokur, Mangalore:
Construction of siding for MRPL at Thokur Station has been completed. The siding is
equipped with conveyor belts and loading silos for petroleum coke loading operations.
During the nancial year, 24 rakes (90977 Ton) of Petroleum Coke were loaded fetching
KRCL an originating earning of ` 16.88 Crore.
10
3.0 PROJECTS
3.1 USBRL PROJECT, J&K - So far, we have completed 37.80 km tunnel excavation, out of a total
of 46.1 km of the construction of Katra-Dharam Section of Uddhampur-Srinagar-Baramulla
Rail Link (USBRL) Project. 8.363 km of tunnel excavation, 6.747 km of Tunnel Lining and
3902 MT of launching have been completed during the year. A turnover of ` 1434 crore
(including GST) was achieved from the Project during the year, as compared to ` 1303 crore
(including GST) of 2018-19.
3.2 Konkan Railway is executing Thermal Power Plant Rail connectivity for NTPC at Kudgi in
Karnataka and Gadarwara in Madhya Pradesh at the revised project cost of ` 400 Crore and
` 672 crore resp. During the nancial year 2019-20, NTPC- Kudgi has achieved physical
progress of 95% whereas NTPC- Gadarwara has achieved physical progress of 100% (Lead
line) and 90% (ROR line). Coal loaded rakes have started to reach the NTPC plant in
Gadarwara since November 2019.
3.3 Route Electrication of Konkan Railway Route: CRS sanction has been obtained for
introduction of commercial services for carriage of goods and passenger trafc on 25kV Ac
traction in Bijoor-Thokur section and electrication work is in progress in other sections of KR
route.
3.4 Rail connectivity to Vizhinjam International Seaport, Kerala: An MoU has been signed
between the Corporation and Vizhinjam International Seaport Ltd. (VISL) to link the Vizhinjam
Seaport with Southern Railway (11 km). The Detailed Project Report (DPR) with an estimated
cost of `1032 crore has been submitted to VISL. Southern Railway has conveyed in-principle
approval of the project to VISL under 'Non-Governmental Railway (NGR)' Model.
3.5 Setting up Rolling Stock Component Factory at Ratnagiri:
The Corporation is constructing the modern, Platinum rated, green and energy efcient
Rolling Stock Component Factory for Central Railway at Parshuram Lote MIDC ( Additional )
to overhaul rolling stock bogies, assemblies and components. The turnkey contract for
Construction and Project Management services has been awarded. The work of construction
of Factory Sheds are underway. The project is expected to be completed by December, 2022.
4.0 SAFETY WORK
4.1 Commissioner of Railway Safety (CRS) carried out Annual Inspection on Konkan Railway
route from Roha to Madgaon and Madgaon to Suratkal on 11th and 12th April 2019
respectively. CRS appreciated the riding quality and other works after the inspection. Overall,
the audit was satisfactory. All the points which required immediate attention have been
attended to. For certain items, long term planning is required and these are being taken up.
11
4.2 During the year 2019-20, Through Weld Renewal (TWR) with Mobile Flash Butt Welding was
completed for a track length of 52.6 KM as a measure to control number of rail fractures and
weld failures due to which there was an overall reduction in Weld/Rail fractures by 5.45% as
compared to the previous year.
4.3 KRCL has implemented E-DAS duly imparting necessary training to the staff.
5.0 TRAFFIC FACILITY WORKS
5.1 Track Doubling - Roha-Veer Section (47 km): Track doubling of this section is expected to
increase line capacity of your Corporation. The work involves construction of 11 major
bridges, 2 road under bridges, 198 minor bridges and 16 lakh cum earthwork & track linking.
During the nancial year 2019-20, the project has achieved cumulative nancial progress of
` 350 crore and physical progress of 94%.
5.2 Construction of 8 numbers of new Crossing Stations and 7 numbers of Additional Loop Lines
The work for construction of new crossing stations and additional loop lines were carried out
during the nancial year 2019-20 and 90% work completed by achieving nancial progress of
` 52 Crore with cumulative nancial progress ` 187.29 Crore.
Additional loop lines at Murdeshwar, Vaibhavwadi, Anjani and Adavali stations were
commissioned during the nancial year 2019-20; which will enhance the line capacity of the
KR route.
6.0 SYSTEM IMPROVEMENTS
6.1 Automated Train Examination Systems (KR-ATES), a Way Side Monitoring Equipment,
designed by the Corporation, was commissioned at 03 stations of Mughalsarai-Kanpur
section of North Central Railway, with this, there will be 10 installations of ATES in the country.
This system has been able to successfully detect several faults in rolling stock .
6.2 Track Machines Maintenance System (TMMS): This is a web-based system, developed to
improve performance of Track Machines and to automate and digitize the operation &
maintenance.
6.3 '5S' Certication of Depots and Rescue Trains - As part of system improvement in Rolling
Stock Maintenance, '5S' has been implemented in the depots of Konkan Railway. All ARTs,
ARMVs, Running Rooms and Stores of Verna and Madgaon Carriage & Wagon Depots have
received '5S' certications. Implementation of '5S' has resulted in improved housekeeping
and system productivity.
6.4 Memorandum of Understanding (MOU) for nancial year 2020-21 have been nalized. There
are some very tough aspirational targets set for the Corporation.
12
7.0 WAY FORWARD
7.1 INTERNATIONAL PROJECTS:
Konkan Railway has bagged its rst International export order for supply of 2 (two) DEMU
train sets to Nepal Railway. The rakes have been manufactured at Integral Coach Factory
(ICF), Chennai and delivered to Nepal Railway in September 2020.
KRCL is also expected to receive order from Nepal Railway for Operationalization of
Jaynagar-Kurtha cross border rail link for which these DEMUs have been procured by Nepal .
7.2 PET Survey for new BG line between Raxaul and Kathmandu (Nepal) :
The work of Preliminary Engineering cum Trafc (PET) Survey for new electried BG line
between Raxaul (India) & Kathmandu (Nepal) was awarded to KRCL by East Central
Railway. The Corporation has also got the Order from EC Rly for carrying out Final Location
survey and for preparation of Detailed Project Report.
7.3 The road ahead is lled with challenges and opportunities and I am condent that Corporation
is motivated to grab the opportunities in coming years and face any challenges.
8.0 INDUSTRIAL RELATIONS
8.1 Industrial Relations during the period was excellent. We express our thanks to the recognized
union and associations for extending their support in the operation of the services of the
Corporation.
9.0 CORPORATE GOVERNANCE
9.1 The Corporation's Corporate Governance Policy is aligned with the Vision and Mission Policy
of the Corporation. The Corporation follows the DPE Guidelines related to Corporate
Governance. For effective implementation of Corporate Governance Policy the Corporation
has in place; diversied and experienced Board of Directors with various Committees of the
Board as per the Companies Act, 2013 as well as DPE Guidelines, Code of Conduct to
promote ethical and responsible decision making for Board of Directors and Senior
Management, Integrity Pact for Vendors, Whistle Blower Policy, System of Accountability,
Policy of making timely and appropriate disclosures, Policy of Corporate Social
Responsibility, Policy for establishment to safeguard sexual harassment of women at
workplace, etc.
13
9.2 TRANSPARENCY
To promote and facilitate transparency, Corporation has introduced various digital and other
initiatives:
a) e-ofce
b) Introduction of GeM and e-tendering of Works and Store Contracts
c) Integrity pact implemented w.e.f. 2013. Corporation has appointed two Independent External
Monitors in 2019.
d) e-auction by Stores Dept.
e) e-ling of APAR for executives and non-executives.
f) All PRS counters are covered with CCTVs.
g) Cashless facilities – RO-RO, PRS & all freight bookings.
h) 100% payment through Banks (Employees & Vendors).
i) Vacancy notication on Website.
j) Online recruitment process.
k) 'Rail Madad', a passenger complaint management system to resolve passenger's
complaints. Complaints are being monitored 24 X 7 on Rail Madad portal.
l) New Web Portal for Capturing details of candidates under National Apprentice Trainee
Scheme category.
m) Mobile App for the employees, for availing of Pass and Leave sanctions from anywhere.
And many more.
10.0 MISCELLANEOUS
10.1 इस वष के दौरान अ खल भारतीय तर पर 'ख' े के सावज नक े के उप म क ेणी के अतं गत
राजभाषा काया वयन म सराहनीय काय करने के लए कॉप रेशन को 'राजभाषा क त परु कार' - थम
थान क राजभाषा शी ड दान कर स मा नत कया गया। कॉप रेशन को पाचं वीं बार यह परु कार ा त
हुआ है।
10.2 क कण रेलवे वगत तीन वष से नवी मुंबई , नराकास, का सचं ालन कर रह है। इस वष के दौरान अ खल
भारतीय तर पर 'ख' े क नगर राजभाषा काय वयन स म तय क ेणी के अतं गत राजभाषा
काया वयन म सराहनीय काय करने के लए नवी मुबं ई नराकास को 'राजभाषा क त परु कार' - थम
थान क राजभाषा शी ड दान कर स मा नत क गयी।
10.3 क कण रेलवे के मडगांव टेशन को राजभाषा काया वयन म सराहनीय काय करने के लए गहृ मं ालय
वारा थम थान का ' े ीय राजभाषा परु कार' घो षत कया गया है।
10.4 कॉप रेशन को राजभाषा काया वयन म सराहनीय काय करने के लए और सव कृ ट राजभाषा गहृ प का
"क कण ग रमा" के लए नवी मुबं ई नराकास क ओर से थम थान क 'नराकास राजभाषा शी ड' से
स मा नत कया गया। राजभाषा काया वयन म सराहनीय काय करने के लए र ना गर , मडगांव,
कारवार और उडु प कायालय को सबं ं धत नराकास वारा 'नराकास राजभाषा शी ड' से स मा नत कया
गया है।
14
10.5 Your Corporation is subjected to oversight by various Parliamentary Committees as part of
democratic process.
i) Meeting with Hon'ble MPs of Konkan Railway Route of Maharashtra, Goa and Karnataka was
held on 19th & 20th September, 2019 at Goa and Karnataka. Meeting with Hon'ble MPs of
Maharashtra was held on 02.01.2020 to discuss issues pertaining to their Constituency /
State. Various issues regarding Passenger Amenities, Train Services, and Recruitment of
Land losers were discussed in these meetings.
11.0 ACKNOWLEDGEMENT
I, thank Ministry of Railways and the Governments of the States of Maharashtra, Karnataka,
Goa and Kerala as well as Central Government Departments and their agencies for their
help, support and co-operation. I, also thank the members of the Board for valuable guidance,
support and prudent counsel from time to time. Finally, I would like to record my appreciation
for the efforts of all the employees, their dedication and hard work, which played an important
role in the growth of the Corporation. I hope that the highly motivated and efcient workforce
will help Konkan Railway Corporation Ltd. in succeeding in all future endeavors.
Place: Navi Mumbai Sanjay Gupta
Date: 14th December, 2020 Chairman and Managing Director
DIN 06710604
15
DEAR SHAREHOLDERS,
THIRTIETH
The Financial performance of the Corporation for the year ended 31st March, 2020 is summarized
as below:
2019-20 (Restated)
2734.77 2898.97
199.79
291.23
131.89 134.59
61.94 56.91
5.96 99.73
5.96 99.73
(190.78) (88.45)
(184.82) 11.28
16
1.1 FINANCIAL RESULTS OF OPERATION
The total revenue of the Corporation was ` 2735 Crore (Rupees two thousand seven
hundred thirty ve crore) as compared to previous year's total revenue of ` 2899 Crore
(Rupees two thousand eight hundred ninety nine crore). Train operations have yielded
gross earnings of ` 1127 Crore (Rupees one thousand one hundred twenty seven crore)
with ` 14 Crore (Rupees fourteen crore) as other income. The project income was ` 1502
Crore (Rupees one thousand ve hundred two crore). The operating surplus (after
meeting the operating costs), i.e., the Earnings before Interest, Depreciation, Taxes &
Amortization (EBIDTA) was ` 200 Crore (Rupees two hundred crore). The Net Prot
(Prot after Tax) was ` 6 Crore (Rupees six crore).
There has been substantial nancial impact in the Financial Year 2019-20 and it is going
to be very severe in the Financial Year 2020-21 due to the COVID- 19 Pandemic.
2. SHARE CAPITAL
2.1 Equity Share Capital
The paid-up equity share capital of the Corporation stood at ` 1283,05,62,000 (Rupees one
thousand two hundred eighty three crore ve lakh sixty two thousand) as on 31.03.2020,
against the authorized equity share capital of ` 4000,00,00,000 (Rupees four thousand crore).
The details of paid up Equity Share Capital are as under:
78,74,79,000
*
78,74,80,000
1283,05,62,000
17
* Rights Shares amounting to ` 29.40 Crore were allotted to Government of Karnataka on
03.06.2020. Hence, paid up capital as on date of reporting Directors' Report is
` 1312,45,62,000.
During the year, the corporation had issued 3rd Rights Shares of ` 490 Crore and as on
31.03.2020, no subscription amount has been received from the shareholders.
2.2 Preference Share Capital
The authorized and paid-up, Compulsorily Convertible, Non-Cumulative Preference
Share capital of the Corporation, as on 31.03.2020, stood at ` 4079,51,00,000 (Rupees
four thousand seventy nine crore fty one lakh), held by Ministry of Railways.
2.3 Issue & Redemption of Bonds
During the year 2019-20, the Corporation redeemed Bonds worth ` 120 Crore (Rupees
one hundred twenty crore) and issued fresh Bonds worth ` 120 Crore (Rupees one
hundred twenty crore) on Private Placement basis, for meeting redemption liability.
2.4 AAA (CE) Rating of Bonds
For the year 2019-20, Credit Rating Agencies - CARE, ICRA and India Ratings, have
reafrmed “AAA (CE)” rating for the outstanding Bonds of the Corporation.
3. KONKAN RAILWAY RESPONSE TO COVID-19 PANDEMIC
KR is the only PSU operating a railway line along the Konkan coastal region from Roha
near Mumbai in the State of Maharashtra to Thokur near Mangaluru in the State of
Karnataka. KR along with Indian Railway as a family is also in the forefront of the war
against Covid-19 pandemic. Freight Operations were continuing moving food grains and
fertilizers destined for the West Coast areas of Maharashtra, Goa, Karnataka and Kerala.
Daily 1400 of the 5500 staff was coming on duty every day to run these operations and
staff with desk jobs were working from home. KR was keeping complete vigil on safety
maintenance of all assets during lockdown period.
The suspension of passenger trafc and restricted freight movement due to nationwide
lockdown, has severely impacted the nancial position of the Corporation. During the
lockdown period due to Covid-19 pandemic, Corporation suffered revenue loss of
` 70 Crore and incurred expenses of ` 0.22 Crore. during lockdown period toward
preventive health measures till 31/03/2020.
Corporation followed all the administrative and Health guidelines issued by MHA and the
State of Maharashtra, Goa and Karnataka during the lockdown period.
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4. BUSINESS OF TRAIN OPERATIONS
4.1 Passenger Operations
• During the year, 46 pairs of Mail/Express trains and 9 pairs of passenger trains were run
per day over Konkan Railway single line system. Weekly AC Double Decker Night service
T. No. 11099/11100 between Lokmanya Tilak Terminus & Madagaon and New T. No.
16595/16596 Yesvantpur-Karwar-Yesvantpur Daily Express via NMGA, SBGA, PADL Bye-
pass was introduced during the year.
• In addition to this, 524 Nos of Holiday special trains were run during Summer, Winter
Holidays and during Ganpati festival to clear extra rush of passengers in the year of 2019-
20. Besides this 238 Nos of other special trains were run during the year including Pooja,
Diwali, Holi, Velankanni special, Week end special, FTR special, Deccan Odyssey etc.
• During the year 2019-20, KR has earned total earning of ` 687.68 Crore compared to
`695.10 Crore in the previous year which is 1.06% less than the previous year.
• Up to end of Feb-20, the coaching earning was ` 672.78 Crore compared to ` 632.15
Crore which was 6.42% more than the corresponding period in the previous year.
However, in the month of March-20, the earning was dropped to ` 14.9 Crore compared
to ` 62.95 Crore in March-19 due to heavy refund on cancellation of trains on account of
Covid-19 pandemic, making impact on overall coaching earnings of FY 2019-20.
4.2 Freight Operations
• During the year, on an average 12 freight trains per day including “Roll-On Roll Off”
services were run on Konkan Railway.
• The unique concept of RORO services introduced over Konkan Railway in January 1999
has completed 21 years of its successful run. Since the introduction of the services about
6.25 lakh trucks are transported through RORO system. Roll “ON”-Roll “OFF” service
has saved precious fuel and played vital role in controlling pollution.
• Apportioned Earnings: During the year 2019-20, KR has earned total apportioned
earning of ` 436.10 Crore compared to ` 560.94 Crore in the previous year. The reduction
in cross trafc like foodgrains, fertilisers as well as inward coal trafc for UPCL siding
impacted the apportioned earnings of KRCL substantially.
• Originating Earnings: Though reduction of 22.2% has been registered in the overall
trafc, KR has registered growth of 21.9% in the originating earnings. The overall
originating freight earnings during the year summed up to ` 194.84 Crore compared to `
159.8 Crore in the previous year.
19
4.3 New trafc streams originating on KR
• Imported fertilizer trafc from Ratnagiri has taken shape during the year and is expected
to continue in future. The fertilizer trafc imported at Jaigad Port is loaded from Ratnagiri
station to various parts of the Maharashtra and Karnataka. During the year, 88 fertilizer
rakes (233512 Ton) are loaded from Ratnagiri fetching KRCL an originating earning of
` 34.65 Crore.
• The Petroleum Coke loading has been started from the newly commissioned MRPL
siding at Thokur. During the year, 24 rakes (90977 Ton) are loaded fetching KRCL an
originating earning of ` 16.88 Crore.
4.4 Overall Train Operation
KR is single line section of 738 kms having average block section of 13 kms. The section
capacity utilization is more than 100%. Despite granting total trafc block of 16001 hours
for maintenance and Railway Electrication works, 18315 coaching trains and 4408
freight trains were run along with maintaining punctuality of 81%.
4.5 Improvement in services
• On 26/01/2019, Computerized Unreserved Ticketing System (UTS) was implemented at
all stations over KRCL to bring uniformity in ticketing system over IR and KRCL. As a one
step further, mobile ticketing system has been commissioned on 15/01/2020 at all
stations over Konkan Railway.
• During the year, the new siding of M/s. Mangalore Renery and Petrochemicals served
by Thokur Station has been commissioned on October-2019 for the trafc. The siding is
equipped with conveyor belts and loading silos for petroleum coke loading operations.
• The process for award of earning contract through IREPS tendering system has been
started rst time and total 42 tenders have been oated through IREPS during the year.
• Konkan Railway has constructed Food Court at Madgaon station to serve variety of
eatables to the passengers. i.e. Pizza & Berger, Chinese cuisine, South Indian cuisine,
Indian Chat, Sandwiches, Wraps, Coffee & Bakery items, Juices & Ice-creams etc. All
seven stalls of the Food Court have been allotted and are in the process of
commissioning.
• Complaint Management System i.e. Rail Madad has been implemented on KRCL on
15/07/2020. It is a one-point solution for railway commuters. 'Rail Madad' is an easy
solution to resolve passenger's complaints. Complaints are being monitored 24 X 7 on
Rail Madad portal and resolved on real time basis. The real time redressal has helped in
reduction of complaints on KRCL.
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5. CIVIL ENGINEERING
5.1 Important Track Safety works
During year 2019-20, Through Weld Renewal (TWR) with Mobile Flash Butt Welding was
completed for a track length of 52.6 KM as a measure to control number of rail fractures
and weld failures due to which there was an overall reduction in Weld/Rail fractures by
5.45% as compared to the previous year 2018-19.
• Commissioner of Railway Safety carried out Annual Inspection on Konkan Railway route
from Roha to Madgaon and Madgaon to Suratkal on 11th and 12th April 2019
respectively. CRS appreciated the riding quality and of other works after the inspection.
• There was an unprecedented rainfall during Monsoon-2019 on KRCL terrain with overall
average of 4514 mm from June19 to Oct19 (RN region average 4873 mm and KW
region average 4156mm) and this overall average rainfall of KRCL of 4514 mm was the
highest in KRCL's history. Also, the rainfall crossed 5000 mm at Mangoan, Chiplun,
Vilawade sections which was a record occurrence. Despite heavy rainfall in Monsoon
2019, there were no major unusual of obstruction or stoppage of train operations.
• KRCL has implemented E-DAS duly imparting necessary training to the staff.
5.2 Drone survey
KRCL has successfully conducted a Drone based inspection for one Major bridge
namely Sharavati bridge in Karnataka in association with M/s. TCS from 16.12.2019 to
19.12.2019 to detect the anomalies/defects at critical locations of bridge spans in which
high level DJI Matrice Drone with advanced multispectral and thermal cameras were
used.
5.3 Passenger Facilities
Some important passenger facilities works were done like Provision of RCC ramp
connecting Platform No.1 to the existing Foot Over Bridge at Kumta Station,
Procurement of 200 numbers of Concood benches for Ratnagiri & Karwar Region, Repair
and Improvement of circulating area, Construction Platform Shelter (3 spans) with Kota
stone ooring and Construction of one Bio-toilet for 200 users at Karwar station.
5.4 Environmental improvement by Tree plantation
Every year KRCL is carrying out the tree plantation for improvement of environment and
KRCL has planted 120497 nos. of Local species and Bougainvillea saplings against the
target of 100000 trees.
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6. INFRASTRUCTURE PROJECTS
6.1 Construction of Katra-Dharam section of Udampur- Srinagar-Baramulla Rail Link
(USBRL) Project, J&K
Tunnel excavation of 8.363 km is achieved during this nancial year. A cumulative length
of 37.80 km of Main tunnel excavation has been completed out of 46.1 km. Breakthrough
of Tunnel T5 of 5959m length (Main Tunnel & Escape Tunnel) & Breakthrough of Tunnel
T2 of 5072m length (Escape tunnel) is achieved during this nancial year. Tunnel lining of
6.747 km is achieved during this nancial year. Cumulative length of Tunnel lining
completed is 36.55 km. Lining of Tunnel T5 (Main Tunnel) completed during this nancial
year.
The construction of Iconic Bridge across river Chenab & Anji are in progress. At Chenab,
Fabrication of Arch, Pier & Trestles is completed. Total fabrication completed so far is
25636 MT. Launching of 3902 MT is achieved during this nancial year. Total Launching
completed so far is 13712 MT. At Anji Bridge (rst cable stayed bridge of Indian Railways),
construction of main pylon (MP1) of Anji Bridge having height of 193m from the top of
foundation was commenced during this nancial Year. Foundation, foundation cap, pier
including pier cap of 51m height for Main pylon is completed. Substructure of Main
Bridge portion (MA2 & MP2) completed during this nancial year. Slope protection at
MP1, 403 nos. of Anchor bolts is completed during this nancial year. Ancillary Viaduct
portion, Abutment A2 - 4.7m out of 5.19m, Pier P1, P2, P3 & Abutment A1 is completed.
Fabrication of 416 MT & erection 216 MT of Ancillary viaduct is completed during this
nancial year. Further, 11 segments of Central embankment out of 13 segments have
been completed.
Construction works for other bridges (16 nos.) are in progress. One bridge is completed
during this nancial year. Total 13 Bridges have been completed out of 21 nos. four
foundations & seven Pier/Abutment have been completed during this nancial year. Total
60 nos. foundations & 60 nos. Pier/Abutment have been completed out of 66 no.
Fabrication of 10012 MT is achieved during this year as compared to 3289 MT of previous
year. This is the highest fabrication achieved in a single nancial year so far. Total
fabrication completed so far is 13,654 MT.
Tenders for Design of broad gauge ballast-less track including supply, installation,
testing and commissioning between km 92.548 to km 101.632 (approx. 12.6 Km) and
between km 42.210 to km 50.400 & km 51.715 to km 61.687 (approx. 22 km) are
awarded. Tender for Manufacture, supply, transportation and delivery of prime quality of
UIC 60 Kg 1080 Grade Head Hardened Class A Rails as per Indian Railway Standard
Specication for Flat Bottom Rails IRS-T-12-2009 (with latest A & C slips) was invited.
Financial bid is opened & evaluation is under process. Tender for Supply, installation,
testing & commissioning of E&M, Tunnel ventilation Lighting, SCADA & Fireghting
Package-1(T-6 to T-12) and Package-2(T-40 to T-47) was invited and evaluation is under
22
process. For Package-3 (T-3 & T-5) opening of tender is scheduled on 30.04.2020.
Financial Progress of ` 1434 Crore (including GST) has been achieved during this
nancial year. This is ` 131 Crore (10.05%) higher than last year's nancial progress of
` 1303 Crore (Including GST). This is the highest ever progress achieved in a single
nancial year so far by KRCL.
(A over view of Chenab Bridge & Anji Bridge construction sites)
6.2 Construction of 8 numbers of new crossing stations and 7 numbers of additional
loop lines
The project was approved by Ministry of Railways vide Railway Board letter
No.2014/PL/50/15 dated 18.04.2016 under Capital Budget 2015-16 for a total cost of
` 73.27 Crore for construction of 8 nos. of additional loop lines and ` 149.41 Crore for
construction of 11 nos. of new crossing stations. The work for construction of 8 nos. of
new crossing stations and 7 nos. of additional loop lines is in progress and 90% work is
completed up to March 2020. All the 35 minor/major bridges are completed. Track linking
work of 19.3 km is completed. In the nancial year 2019-20, four additional loop lines
work at Murdeshwar, Vaibhavwadi, Anjani and Adavali are completed and
commissioned. Cumulative six additional loop lines are commissioned till date. Finance
booking achieved for the year 2019-2020 is ` 51.54 Crore against MOU target of ` 40
Crore.
(A view of Vaibhavwadi loop line) (A view of Adavali loop line)
23
(A view of Murdeshwar loop line)
6.3 Rolling Stock Component Factory, Ratnagiri
The Rolling Stock Component Factory is being built by KRCL as a modern, platinum
rated, green and energy efcient factory for Central Railway to overhaul rolling stock
bogies, assemblies and components. It is being constructed at Additional Parshuram
Lote MIDC on 50 acre land. The turnkey contract for construction of the Rolling Stock
Component Factory was awarded to M/s Tata Projects Ltd. on 12.7.2019 at ` 392.59
Crore. The contract for Project Management services was awarded to M/s Rass Project
Consultants Ltd., Pune. The Design of Factory Complex has been nalised. The
boundary wall, land development work has been completed and the work of
construction of Factory Sheds is underway. Critical machinery and equipment for LHB
bogie overhaul has been procured. 33KV Power supply shall be provisioned by
MSEDCL. The expenditure (provisional gures) during the year has been ` 77.84 Crore
against the target of ` 75 Crore.
(The schematic view and the foundation work at factory site)
6.4 Roha-Veer Doubling Project
Doubling of track in Roha – Veer Section (47km) involves construction of 11 Major
24
bridges, 2 Road under bridges, 198 Minor bridges, more than 16 lakhs cum earthwork
and track linking. A nancial progress of more than `110 Crore has been achieved in this
nancial year, making a cumulative nancial progress of more than ` 350 Crore. The
project has recorded a physical progress of more than 94%.
(A view of Patli Bridge) (A view of Mangaon RUB)
6.5 Rail connectivity to Vizhinjam International Seaport, Kerala
An MoU has been signed between the Corporation and Vizhinjam International Seaport
Ltd (VISL) to link the Vizhinjam Seaport (11 km) with Southern Railway. The Detailed
Project Report (DPR) with an estimated cost of ` 1032 Crore has been submitted to VISL.
Southern Railway have conveyed in-principle approval of the project to VISL under 'Non-
Governmental Railway (NGR)' Model and asked VISL to remit the balance D&G Charges
for processing the DPR for approval.
6.6 PET Survey for new BG line between Raxaul and Kathmandu (Nepal)
The work of Preliminary Engineering cum Trafc (PET) Survey for new electried BG line
between Raxaul (India) & Kathmandu (Nepal) was awarded to KRCL. The work of rst
international project of KRCL was completed in a record time of 4 months. Final Report
with 1 in 50 gradient was submitted to ECR and the same was approved. Subsequently,
Railway Board had asked KRCL to submit cost estimation to carry out Final Location
survey and for preparation of Detailed Project Report and the same was submitted by
KRCL.
6.7 Final Location Survey for new BG Line between Raxaul and Kathmandu:
East Central Railway (ECR) have awarded Final Location Survey for new BG Line
between Raxaul and Kathmandu. Tender process by KRCL through IREPS portal is
progressing. Due to outbreak of COVID-19, notice of “Force of Majeure” dated
28.03.2020 has been conveyed to ECR.
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6.8 Rail Connectivity Project for Super Thermal Power (3 x 800 MW) Plant of NTPC at
Kudgi, Karnataka.
The work of Rail Connectivity for Super Thermal Power Plant (3 x 800 MW) of NTPC at
Kudgi, Karnataka is being implemented by Konkan Railway under Project Management
Consultancy (PMC) contract. The awarded cost of the project was ` 265.85 Crore and
revised cost of the project is ` 400 Crore. The route length of the siding is 11.65 km and
total track length is 38.00 km which includes 15 lines in In-plant yard. There are 16
bridges including one viaduct of 700 m length. The rst stage of siding was
commissioned on 10.02.2017. Second stage of siding completed on 01.02.2020. The
additional works like construction of Steel FOBs (04 nos.), yard drainage, inspection
pathway in the yard are presently in progress. Presently, about 95 % physical works are
completed with nancial progress of ` 357.03 Crore.
(A view of ROB at Km. 9/967 (1x 36m Composite Girder)
6.9 Rail Connectivity Project for Super Thermal Power (2 x 800 MW) Plant of NTPC at
Gadarwara, Madya Pradesh.
The work of Rail connectivity for Super Thermal Power Plant (2 x 800 MW) of NTPC Ltd. at
Gadarwara, Madhya Pradesh is being implemented by Konkan Railway under Project
Management Consultancy (PMC) contract. The work was awarded in June 2014. Lead
line from Km 0/920 to 10/826 with 1 loop line of R&D Yard and 2 lines of In-plant yard
commissioned on 21.11.2019 and coal transportation commenced. Subsequently, 4
more lines connecting balance two Wagon Tipplers were commissioned on 29.05.2020.
The current status of works with salient features of the Project is listed below:
1 Route length of proposed railway alignment Lead line - 10.99 Km
ROR Line – 12.27 Km
2 Awarded cost of work ` 292.46 Crore
3 Revised Cost of work ` 671.55 Crore
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4 Financial Progress achieved till March 2020 ` 597.57 Crore
(88.98%)
5 Physical progress achieved till March 2020 Lead line- 100%
ROR line- 90%
6 Date of completion for 1st stage Completed on 21st
(Lead line) November 2019
7 Target date of completion for 2nd stage (ROR line) 31st March 2021
8 Total no. of bridges 30 nos.
9 Total Earthwork (Embankment and cutting) 41.50 Lakh cum
10 Total Track Length 43 Km
11 Track linking completed 27 Km
(A view of Br. No. 12 at Km. 06/830 (12x30.5 m Composite Girder)
(1st Locomotive movement on 21.11.2019)
27
6.10 Mangalore Renery and Petrochemicals Ltd. (MRPL) siding work at Thokur Railway
Station
KRCL agreed to the request of M/s MRPL for construction of Private siding at Km.738.130
from the Thokur Railway Station on “Deposit term Basis” and agreement was signed by
both KRCL & MRPL on 31.10.2016. The work of construction of MRPL siding including
Earthwork, Bridges, Track linking and approach road near Thokur Station is completed
on 30.05.2019. Financial progress achieved in the nancial year 2019-20 is ` 13.22 Crore
against target of ` 13.00 Crore. The loading operation in the new siding is commenced.
Engine Trial at MRPL siding on First freight train entering on MRPL siding
30.05.2019 and loading of petcock started on 18.10.2019
6.11 Closure of LC 61 by constructing RCC precast box in Karwar Region
The work construction of 3.00mX2.50m RCC precast box (segmental) by cut and cover
technic in lieu of LC 61 at Km 549/000 between Gokarna Road and Kumta is completed in
all respect. LC 61 gate is permanently closed.
(Image of RCC precast box)
28
7. ELECTRICAL
7.1 Safety
High standards of safety were maintained with following achievements:
• Electrical accident of re in KRCL trains – Nil
• En-route AC failure (CNAC) in KRCL trains – Nil
• Detention of trains on account of tunnel ventilation failure - Nil
7.2 Railway Electrication
• CRS sanction has been obtained for introduction of commercial services for carriage of
goods and passenger trafc on 25kV Ac traction in Bijoor-Thokur section (108.858
RKM/134 TKM) vide letter no. C-13(396)/2020/254 dated 18.03.2020.
• Despite difcult working conditions due to tough terrain in Roha-RN and Tokur-Kumta
sections with 44.5 Km tunnels, 291 nos. of deep cuttings and 99 nos. of bridges, which
was further worsened by the unprecedented heavy & stormy rains for almost 4 months,
all out efforts were made to achieve the target. Notwithstanding the outbreak of deadly
COVID-19 in the month of March 2020, Capex booking of ` 262.77 Crore could be
achieved.
8. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of Energy, technology Absorption and Foreign
Exchange Earnings and Outgo stipulated under section 134(3)(m) of the Companies Act,
2013, read with the Sub Rule 3 of Rule 8 of Companies (Accounts) Rules, 2014 are as under:
8.1 Energy Conservation
8.1.1 Compared to last year, 2.80% saving (excluding inevitable consumption due to
additional load/new activities) in electrical energy consumption was achieved, thereby
saving ` 23.85 lakh. Besides, an incentive reward of ` 21.80 lakh from the State Electricity
Boards was earned for efcient energy management.
8.1.2 Green Energy
• 5.29 lakhs Kwh was generated by the Solar Power Plants installed, saving ` 66.68 lakh.
Cumulative saving of ` 213.98 lakh has been achieved since this provision, by
generating 19.02 lakh Kwh.
29
• During the FY 2019-20, 1.56 lakh units were generated and exported to the State
Electricity Grids. An amount ` 9.16 lakh was credited in the energy bills for such
generation.
8.2 Technology absorption
Details are mentioned below in the table:
Sl. No. Particulars Status
(a) Details of technology imported Nil
(b) Year of import Nil
(c) Whether the technology been fully absorbed Nil
(d) if not fully absorbed, areas where absorption has not taken place, and Nil
the reasons thereof
(e) Expenditure incurred on Research and Development. Nil
8.3 Foreign exchange earnings and out go
During the year, there were Nil foreign exchange earnings.
Details of foreign exchange outgo are as under:
(i) Foreign Exchange Outgo:` 0.11 Crore on account of training and business
development.
9. MECHANICAL
9.1 Supply and Commissioning of DEMU Trainsets to Nepal Railway
The manufacturing of Two 5 Car 1600 HP DEMU Trainsets for Nepal Railway against the
rst international order received by Konkan Railway was completed at ICF, Chennai and
the rakes have been dispatched from ICF to be handed over to Nepal via East Central
Railway. Contract Agreement for this work was signed on 10th May 2019 between Govt.
of Nepal (DoRW) and KRCL.
Photo: Exterior and interior views of 1600 HP DEMU Trainset
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9.2 Rolling Stock Component Factory, Ratnagiri
The Rolling Stock Component Factory is being built by KRCL as a modern, platinum
rated Green and energy efcient Factory for Central Railway to overhaul rolling stock
bogies, assemblies and components. It is being constructed at Additional Parshuram
Lote on 50 acre land. The turnkey contract for construction of the Rolling Stock
Component Factory was awarded to M/s Tata Projects Ltd on 12.7.2019. The work
amounting to `77.84 crore against was completed during 2019-20.
Photo: The schematic view and the foundation work at factory site
9.3 Asset Reliability and Safety Performance
The asset reliability and safety performance has been maintained during the year with
Zero Accidents/Derailments on Rolling Stock Account; Zero SPAD cases; Zero Coach
Detachment and Zero Wagon detachment on KRCL account and Zero Hot Axle Cases.
9.4 Development of Track Machines Maintenance System (TMMS)
In order to improve performance of Track Machines and to automate and digitize the
operation & maintenance, Mechanical department has designed and developed a web-
based Track Machines Management System (TMMS) for all Track Machines for the rst
time in Indian Railways. This system has various features such as GPS based tracking of
machines, paperless working by feeding all data and information directly on the
application provided in the tablets, computerized productivity and reliability
performance analysis and inventory planning.
9.5 Automated Train Examination System (ATES)
KRCL received an order for installation of 03 ATES systems in Mughalsarai-Kanpur
section of North Central Railway which is major trunk route of Indian Railways with speed
over 120 KMPH. Earlier Two ATES sets were commissioned at Nagpur in Central Railway.
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With this there will be 10 installations of ATES in the country. ATES is a Wayside system to
check the health of running trains passing over the trackside unit. The system is
developed and patented by Konkan Railway. This system is also ISO 9001 certied.
9.6 Upgradation in Passenger Rolling Stock
LHB coaches were inducted in three rakes of Konkankanya and Mandovi Express from
10th June 2019. The training of staff and arrangement of materials, tools and equipment
has been arranged to ensure smooth operation and maintenance of services. The
working of these rakes has now been stabilized.
The work of tment of Bio-Toilets has been completed and all coaches have now been
tted with bio-toilets.
9.7 '5S' Certication of Depots and Rescue Trains
As part of system improvement in Rolling Stock Maintenance, '5S' has been
implemented in the depots of Konkan Railway. All ARTs, ARMVs, Running Rooms and
Stores of Verna and Madgaon Carriage & Wagon Depots have received '5S'
certications. Implementation of '5S' has resulted in improved housekeeping and system
productivity.
9.8 Business Development and Promotional Activities
Mechanical department has taken several initiatives for business development in the
areas of rolling stock infrastructure, operation & maintenance and technology. Some of
the major efforts and achievements during the year are as under :
• Received order from Railway Board for Development, Supply and Commissioning of
ATES based Systems in 40 Yards of Indian Railways with total project value of ` 138 crore.
• Received authorization letter from Railway Board for export of wheelsets manufactured
by Rail Wheel Factory, Bangalore in USA and other countries.
• Submitted draft MOU to Central Railway for operation of Rolling Stock Component
Factory under construction at Chiplun on behalf of Railways.
• Konkan Railway participated at 'IREE 2019,' an International Railway Exhibition held in
New Delhi in October 2019 showcasing ATES/ACWP, Nepal DEMU Rakes and
Engineering Projects.
32
10. SIGNAL AND TELECOMMUNICATION
10.1 Replaced over aged relay based Panel Interlocking with Electronic Interlocking at Udupi
and Mulki stations, thereby enhancing safety in train operations with improved reliability.
Remodeling in yard is easy and less time consuming. These stations are also made
Railway Electrication complaint.
At UDUPI At MULKI
10.2 Provided additional loop lines at Anjani, Adavali, Vaibhavwadi & Murudeshwar stations,
facilitating improvement in operational capacity.
At ANJANI At ADAVALI
At VAIBHAVWADI ROAD At MURUDESHWAR
10.3 Commissioned Thokur – Bijoor, 108 km section for 25 KV Railway Electrication, after
CRS inspection on 12.03.2020, involving alterations in existing PI Signaling circuits,
installation & commissioning of outdoor Signaling equipment suitable for Railway
Electrication at 08 Stations (Thokur, Surathkal, Nandikur, Padubidri, Barkur, Kundapur,
Senapur & Bijoor).
33
10.4 Wi-Fi has been provided at all Stations of KR as a part of Ministry of Railway's 100 days
Action Plan, under MoU of IR with M/s. TATA TRUST and commissioned on 22.09.2019.
10.5 15 pairs of “Block panel along with Universal Fail Safe Block Interface (UFSBI) and Block
proving by Axle counter (BPAC)” provided in 15 Block sections, facilitating easier/faster
operation for station master including Automatic Block closure, resulting in improved
reliability, making block circuit RE t. This also upgraded the standards of Interlocking
from STD II (R) to STD III (R).
10.6 Engineering “Special Class” Manned Level crossing gates No 62 & 89 are interlocked
independently with combination of signals. Also, 'C' Class LC gate Nos 76, 78, 79 & 90
are interlocked with Station signals. Sliding booms are provided at LC Nos 62, 76, 89 &
90 to improve the reliability as redundancy in operation of Level crossing gates is
provided. In addition to this, at 15 LC gates, Mechanical Lifting Barriers have been
replaced with Electrical Lifting barriers in connection with Track doubling work (11 gates)
& Interlocking of LC gates (04 gates).
Manual operated LC gate being
replaced with Electrical operated Gate
MLCG with Booms manually MLCG with Booms Electrical
operated operation & boom locking
10.7 Replaced conventional aspects of Subsidiary Signal aspects with LED aspects at 53
stations (Excl. KOL, MNI, VEER, MAO, MJO which are under progress in Patch Doubling
& RVNL works) to improve the visibility of signals and also reducing the power
consumption.
34
Replacement of Conventional signal Replacement of Conventional signal
lamp with LED unit (Shunt Signal) lamp with LED unit (Calling ‘on’ Signal)
Shunt Signal with lamp Shunt Signal with LED unit Calling on signal with lamp Calling on signal with LED unit
11. SAFETY
• Konkan Railway has accorded highest priority for Safety in train operations with quest for
zero accidents. The personnel involved in train operations have been kept up to date with
their working knowledge through regular training, workshops, interactions etc.
considering immediate requirements. During the year there was one consequential train
accident of Fire in AC 3 tier (B-4) coach of Train No.12618 (Mangala express) in Bijoor
and Senapur section on 28.04.2019. There was no casualty/injury in the accident. The
responsibility for this accident was attributed to personnel belonging to Southern
Railway. There was no case of SPAD. CRS / Central Circle conducted the annual safety
inspection of ROHA-TOK section on 11th & 12th April 2019 along with C&MD, Directors
and concerned HoDs. Also, CRS/CC along with C&MD, Directors and concerned HoDs
conducted inspection of RE works between Thokur-Bijoor stations on 12.03.2020 in
connection with commissioning of RE.
• Inter Railway Safety Audit of Karwar Region by a team of PCSO and SAG ofcers of South
Eastern Railway was conducted from 28th to 30th November, 2019. Intra Railway Safety
audit of RN & KAWR region have been conducted in the month of December 2019 and
February 2020 respectively. PED/Safety & ED(Mech)/Safety Railway Board have
conducted safety review meeting at Madgoan on 12.10.2019. A joint mock exercise with
NDRF / 5 Battalion Pune, has been organized at VEN station on disaster management on
13.10.2019. Also, to check the functioning of SPARM cum MFD Van with MFD Equipment
and alertness of staff two each at RN & VEN full scale Mock Exercise has been
conducted.
• During the year, 03 SAG level executives have attended Safety Management training
courses at IRITM/Lucknow. To inculcate safety rst culture 14 nos. of safety
circulars/JPOs have been issued. 56 Safety Seminars/ workshops were organized
wherein total 2874 nos. of Safety Category Staff participated and 32 nos. Safety Drive
were launched. Also, SWRs were prepared in view of Doubling works, additional loop
lines, new stations, RE works, EI working, etc. In addition to above, to ensure safety in
train operations and for system improvement, 26608 nos. of safety inspections covering
various safety installations have been conducted during the year.
12. GLOBAL COMPACT
Corporation is among the rst few PSUs, who is a signatory to Global Compact. The
Corporation strives to comply with the 10 (Ten) principles of United Nations Global
35
Compact (UNGC) while conducting its day-to-day business and has become a
permanent Member of UNGC.
13. HUMAN RESOURCES DEVELOPMENT
13.1 Policy Framing
Revised Promotion Policy has been implemented. For the rst time at KRCL, LDCE &
GDCE selection has been introduced. All cadres have been restructured with higher
percentage. Promotion Avenue also notied along with the policy. Track maintainer
cadre similar to Indian Railway has been implemented. KRCL has implemented online
APAR system for Non-executives. Detailed Schedule of Power on Establishment matter
has been implemented.
13.2 Recruitment
Major transformation has been achieved during the year in process of recruitment by
switching over from manual to “On Line” recruitment process, which in turn has enabled
smooth and transparent recruitment process without interface of human. Various
recruitments in safety and non-safety categories have been nalized. 203 employees
were recruited during the year 2019-20.
13.3 Industrial relations
During the year, industrial relations have been cordial with Unions.
13.4 Women Employees
As on 31.03.2020, there are 444 nos. of women employees in the Corporation working all
over jurisdiction of Konkan Railway holding some of important posting and crucial
operations of train running. The percentage of Women employees is 7.98% of the total
employees.
13.5 Man Power Position as on 31.03.2020
Group GEN OBC SC ST Total Ex- PH Minorities
Serviceman
Executive 156 51 34 13 254 03 1 20
Non- 1993 2151 818 350 5312 24 18 550
Executive
Total 2149 2202 852 363 5566 27 19 570
36
13.6 Particulars of Employees
As per provisions of section 197 of the Companies Act, 2013 read with the Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
every listed company is required to disclosed the ratio of the remuneration of each
Director to the median employee's remuneration and such other details as may be
prescribed in the Director's Report. However, as per Notication No. GSR463 (E) dated
05.06.2015 issued by the Ministry of Corporate Affairs, Government Companies are
exempted from complying with provisions of section 197 of the Companies Act, 2013.
Konkan Railway Corporation Limited being a Government Company, such particulars
are not included as part of Director's Report.
14. TRAINING
Training department imparted all mandatory safety training to the safety category staff
including Initial and Refresher courses. Apart from Safety training, different soft skills
training programs were conducted for front line staff, catering staff and contract
employees, Artisans, housekeeping staff, Group 'D' staff, Group 'C' staff and Executives
to improve skills of employees and provide better service to passengers and thus
improve image of Railways. Mobile workshops were conducted on safety and non-safety
topics at different stations on KR route to reach out to maximum staff. During the year
2019-20, as many as 20 Initial Courses were conducted in-house. As many as 512
number of courses were held compared to 499 of 2018-19, which is an increase of 2.61%.
The training man-days achieved in the year 2019-20 is 36061 as compared to 31058 of
2018-19, which is an increase of 16.11% than the previous year. Further, about ` 4.3
Crore was saved through in-house training that is excluding accommodation/hostel
charges of ` 1.28 Crore and we have saved ` 1.78 Crore only through imparting Initial
Training. Training Department also earned ` 63 lakh through paid trainings to external
students and Engineers. During Financial Year 2019-20, out of sanctioned revenue
budget of ` 60 lakh for Training Department, saving of 34% has been done through strict
monitoring and austerity measures.
15. MATERIAL MANAGEMENT
During the year scrap sale of ` 8.20 Crore has been achieved. This is 42% higher than the
last year's scrap sale of ` 5.76 Crore Money. value realized during current year is ` 8.05
Crore. Sale could have gone above ` 9 Crore but for lock down. 98.78% of the total sale
has been done through E-auction & 98.89% of the procurement has been done through
IREPS. Against Govt. of India's target of 25% of total procurement, KRCL has achieved
66.7% and this performance is best among top 5 CPSEs. By pursuing M/s. SAIL and
Railway Board, KRCL could make M/s. SAIL to agree to supply 260-meter-long panel
rails at the same rates of Zonal Railway. Earlier, M/s SAIL had quoted much higher rates
for KRCL as well as advance payment. Due to this, a cost saving of ` 4.86 Crore has been
achieved in that contract and estimated annual saving on recurring basis of about ` 10
37
Crore. In recent supply of Rails to Konkan Railway the freight charges have been paid by
KRCL through Railway Material Consignment (RMC) Note by which paying GST @ 5%
on freight charges and saving 13% GST amount having total value of ` 18.21 lakh. Total
procurement made from GeM is ` 1.43 Crore. Percentage of Procurement made from
MSEs through GeM is 73.4%. Saving of ` 0.32 Crore. MMD has reengineered whole
procurement process to meet challenge of arranging all items related to Covid-19 crisis.
Almost all items were arranged even befor lockdown.
16. VIGILANCE
During the year 2019-20, 145 preventive checks were conducted as a result of which 5
major penalty, 16 minor penalty and 24 administrative actions were recommended. The
checks also yielded earnings of ` 41.24 lakh towards penalties / recoveries. 01 major
penalty action & 01 minor penalty action were recommended as a result of complaint
investigation. In addition to above, 04 System Improvements were recommended to
Accounts, Stores, Electrical/S&T and Medical Departments.
Vigilance Awareness Week was observed in Konkan Railway from 28th October to 2nd
November 2019. Pledge for Vigilance Awareness was taken by the Ofcers and staff at
the Corporate Ofce of Konkan Railway at Belapur as well as in the Regions and Project
Ofces. 449 Citizens and 440 employees undertook e-Pledge at various stations. Various
competitions like elocution, debate, quiz, essay, cartoon/poster were organized for
KRCL employees & their families. In addition, Guest lecture was arranged at Corporate
ofce, Belapur and Panel discussion on the subject 'Integrity – A way of life'' was arranged
at Ratnagiri. Ninth green edition of bulletin titled 'Sachetak' was released during this
Vigilance Awareness Week. For spreading awareness walkathon was conducted at
Madgaon and Human chains were organized at Udupi, Karwar & KRA Madgaon.
Activities like quiz, essay writing, elocution, awareness talk, poster drawing were
conducted at various schools and colleges along the KR route in Maharashtra & Goa
state.
17. HEALTH CARE
Man-day loss in 2019-20 was 0.85% as compared to 1.11% in 2018-19. This has ensured
availability of more human resource at the respective work station translating into
increased output. 86 diagnostic and preventive health checkup camps have been
organized at various health units to identify the target group of employees and their
families suffering from Hypertension, Diabetes Mellitus, Obesity etc. 2937 beneciaries
availed the benet of these camps. 382 Medical Examinations and 920 Periodical
Medical Examinations were conducted during the year. 33227 bills of employees were
reimbursed and 1797 hospital bills have been cleared within stipulated time during the
year. In addition to the existing empaneled hospitals, three more hospitals offering CGHS
rates have been recognized for providing medical care to the employees and their
dependents. Successfully implemented online reimbursement module as a step
towards paperless Ofce.
38
18. INFORMATION TECHNOLOGY
• A Station Complaint Management System for tracking of complaints has been
implemented.
• A New Web Portal for Capturing details of candidates under National Apprentice Traine
Scheme category has been implemented.
• Implementation of Online Annual Performance Appraisal System for non-executives -
rst time in Indian Railway on yearly basis with APAR status tracker and Dashboard was
also achieved this year.
• A digital initiative for the employees, for availing of Pass and Leave sanctions from
anywhere being highly benecial for employees specially those like Trackmen, Gang
men, Patrolmen through mobile app was also provided.
• An Online Transfer request and Order Generation module has been implemented to
initiate proposal for competent authorities' approval and generation of Transfer Order up
to Composite Transfer Grant, Transportation Charges claim using workow through
system.
• As a part of initiative to cut down the cost of IT Station infrastructure all Station JRAP
modules are consolidated and is now been facilitated to access from a cloud technology
Central Server.
• A digital initiative from Konkan Railway for its Retired Employees, for availing of Post
Complimentary Retirement Pass and Medical Reimbursement facilities from anywhere
has been implemented.
19. RAILWAY PROTECTION FORCE
• During the year, 34 culprits who were involved in Theft of Passengers belongings were
arrested and stolen property valued ` 9,37,940/-was recovered. All the culprits were
handed over to concerned State Police for further legal action and cases were registered
against them under Section 379 of IPC.
• During the year, 22,009 bottles of liquor valued ` 31,88,410/- were seized in train and
railway premises at various stations while being transported illegally with arrest of 29
persons. The seized liquor was handed over to concerned excise authorities under
acknowledgement.
• During the year, 145 passenger's luggage and valuable items value of ` 27,53,675/-
recovered / secured and returned to the passengers.
• During the year, 86 children who had run away from their homes and were found in trains
or in railway premises were traced / rescued. They were handed over safely to their
parents / Child Help Line.
39
• Security of Women & Children on Railways: Measure for Safety and Security of Women
and children were undertaken on KR route with a dedicated Helpline No.182 for women &
children in distress to full its aim & objectives.
• During the year 1597 culprits who were involved in illegal vending/selling were arrested
and prosecuted U/S 144 of Rlys Act and a ne of ` 10,87,534 /-realised and 03 were send
to jail by Hon'ble Court.
20. कॉप रे शन की राजभाषा काया यन म गित:
इस वष के दौरान अ खल भारतीय र पर 'ख' े के सावजिनक े के उप मों की ेणी के अंतगत
राजभाषा काया यन म सराहनीय काय करने के िलए कॉप रे शन को 'राजभाषा कीित पुर ार' - ि तीय
थान की राजभाषा शी दान कर स ािनत िकया गया। कॉप रे शन को पांचवी ं बार यह पुर ार ा
आ है।
कोकं ण रे लवे िवगत दो वष से नवी नराकास, मुंबई का संचालन कर रही है। इस वष के दौरान अ ख ल
भारतीय र पर ' ख ' े की नगर राजभाषा काय यन सिमितयो ं की ेणी के अंतगत राजभाषा
काया यन म सराहनीय काय करने के िलए नवी मंुबई नराकास को ' राजभाषा कीित पुर ार' - थम
थान की राजभाषा शी दान कर स ािनत िकया गया।
कोकं ण रे लवे के मडगांव ेशन को राजभाषा काया यन म सराहनीय काय करने के िलए गृह मं ालय
ारा थम थान का ' े ीय राजभाषा पुर ार' घोिषत िकया गया है।
कॉप रे शन को राजभाषा काया यन म सराहनीय काय करने के िलए और सव ृ राजभाषा गृह पि का
" कोकं ण ग रमा" के िलए नवी मंुबई नराकास की ओर से थम थान की ' नराकास राजभाषा शी ' से
स ािनत िकया गया। राजभाषा काया यन म सराहनीय काय करने के िलए र ािगरी,मडगांव,कारवार
और उडुिप कायालयो ंको संबंिधत नराकासो ं ारा 'नराकास राजभाषा शी ' से स ािनत िकया गया है।
40
21. GENERAL ADMINISTRATION
21.1 Campaigns & Drives
• Swachhta Pakhwara
In terms of the instructions received from the Ministry of Railways “Swachhta Pakhwara”
was successfully organized as part of the Swachh Rail Swachh Bharat, at all the
establishments of KRCL from 16th to 30th September,2019. During this occasion
Swachhta Pledge was administered at Corporate Ofce, Regional Ofces at Ratnagiri &
Karwar as well as at Project Ofce of J&K and emphasis was given on 'Shun Plastic Use’.
• Community Day
To commomorate the Birth Anniversary of Mahatma Gandhi, 02nd October, 2019
was observed as 'Community Day' at Corporate Ofce, Konkan Rail Vihar Colony
at Nerul, Regional Ofces at Ratnagiri & Karwar as well as at Project Ofce of J&K.
Shramdaan was organized at Railway Colonies, Stations and at all the
surrounding areas on the Konkan Railway Route, in which all the employees and
stakeholders took part. During this occasion tree plantation was organised along
the KR route. Street plays were also conducted at Station premises.
• Ek Bharat Shreshtha Bharat
With an objective of celebrating Unity in Diversity of the Nation and to strengthen
the bonds between the people of the country, Government of India had launched
the Ek Bharat Shreshtha Bharat (EBSB) program. Konkan Railway actively
participated in this program. EBSB logos, posters, banners, theme songs, clips,
etc., shared by MHRD were displayed/played at Railway Stations.
• Martyrs' Day
On 30.01.2020 on the occasion of Martyrs' Day 'two minute silence' was observed
from 11:00 to 11:02 hrs. in the Ofces and Stations of Konkan Railway. Suitable
arrangements for announcement at Stations about commencement and
termination of 'two minute silence' was made for those assembled at the Railway
Platforms so that the dignity of the occasion is not marred by any unnecessary
noise.
• Sadhbhavana Diwas
On 20.08.2019 'Sadhbhavana Diwas' was observed at Corporate Ofce and
Regional Ofces of Ratnagiri and Karwar as well as Project Ofce at J&K to
41
promote National Integration and Communal Harmony among people of all
religions, languages and regions and to eschew violence and promote goodwill
among the people. During this occasion Sadhbhavana Plegde was taken by all
the employees.
• Rashtriya Ekta Diwas
To commemorate the Birth Anniversary of Sardar Vallabhbhai Patel, Konkan
Railway observed “Rashtriya Ekta Diwas” on 31.10.2019. “Run for Unity” was
organized wherein employees of Konkan Railway actively participated to make
this event a grand success. Integrity Pledge was also administered to the
employees to commemorate this event. Prabhat pheris / Nukkad Nataks/Quiz &
Essay competitions were also organized during this occasion.
• Constitution Day
The 70th Constitution Day was celebrated on 26.11.2019 at the Corporate Ofce,
Regional Ofces in Ratnagiri and Karwar as well as Project Ofce of USBRL at
J&K. The Preamble to the Constitution of India was read out by C&MD at
Corporate Ofce and Regional Railway Managers, Project In-charge in English
and Hindi at the respective Regions. The Fundamental Duties of Citizens were
also read out on the occasion. Printouts of these duties were displayed on Notice
Boards of Stations and at various ofces.
• Public Sector Day
10th Public Sector Day was observed in Corporate Ofce as well as in Regions
from 10th to 16th April, 2019. On this occasion Quiz and Essay Competitions
were conducted. Winners were suitably awarded.
22. VISITS OF PARLIAMENTARY COMMITTEES
• Meeting with Hon'ble MPs along the Konkan Railway Route of Maharashtra, Goa
and Karnataka was held on 19th & 20th September, 2019 at Goa and Karnataka.
Meeting with Hon'ble MPs of Maharashtra was held on 02.01.2020 to discuss
issues pertaining to their Constituency / State. Various issues regarding
Passenger Amenities, Train Services, and Recruitment of Land losers were
discussed in these meetings.
• Konkan Railway Users' Consultative Committee meeting was held at Goa on
27.02.2020. The Committee discussed passenger amenities and train services.
42
23. MEMORAANDUM OF UNDERSTANDING (MOU) RATINGS
Department of Public Enterprises has assigned “GOOD” MOU rating to the
Corporation for the year 2018-19. The overall performance of Corporation in
terms of MOU Parameters for the year 2019-20, is expected to be “FAIR”.
24. DIVIDEND
The Board of Directors do not propose to recommend for payment of dividend
during the year under review.
25. RESERVES
In view of accumulated losses, the Board of Directors do not propose to transfer
any amount to Bond/Debenture Redemption Reserve in terms of the Companies
(Share Capital and Debentures) Rules 2014, which mandates the Corporation to
create a Debenture Redemption Reserve for the purpose of redemption of
Debentures.
26. INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
The Corporation had issued Bonds to public in the year 1994 & 1997 through 2A &
6B series Bonds resp. The unclaimed and unpaid amounts on these Bonds were
transferred to IEPF Authority as per Section 205C of Companies Act, 1956, now
under Section 125 of the Companies Act, 2013. As per the provisions of the said
Act, the Bondholders, whose unclaimed and unpaid interest and redemption
amount was transferred to the IEPF, can now claim the said amount from IEPF
Authority by obtaining verication report from the Corporation. In this regard,
Corporation has been issuing verication report to IEPF authority, in connection
with claims of the Bondholders, as per IEPF Rules, 2016. IEPF Authority has
issued claims of the eligible Bondholders.
27. A STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF A
RISK MANAGEMENT POLICY FOR THE COMPANY INCLUDING
IDENTIFICATION THEREIN OF ELEMENTS OF RISK, IF ANY, WHICH IN THE
OPINION OF THE BOARD MAY THREATEN THE EXISTENCE OF THE
COMPANY.
The Corporation has in place a Risk Management Policy in line with the DPE
Guidelines on Corporate Governance for CPSEs to ensure the integration and
43
28. alignment of the risk management system with the corporate and operational
28.1 objectives. The Risk Management Cell constituted by the Risk Management
28.2 Committee was tasked to evaluate department wise risks along with mitigation
plan. A booklet has been prepared covering departmental risks and its mitigation
28.3 plan and the same is revised periodically.
28.4 AUDITORS
Statutory Auditors
The Comptroller & Auditor General of India had appointed M/s. V.K. Surana & Co.,
Chartered Accountants, as Statutory Auditor for the year 2019-20.
Internal Auditor
The Companies Act, 2013 has given statutory recognition to Internal Audit,
keeping in view its relevance in today's business scenario. As per section 138 of
the Companies Act, 2013, read with Rule 13 of Companies (Accounts) Rules
2014, the Corporation had appointed M/s. RAV & Co., Chartered Accountants, an
independent accounting rm, to undertake the internal audit of the Corporation
for the year 2019-20.
GST Auditors
M/s Thakur Vaidhyanath Iyer & Co, Chartered Accountants, Mumbai for the States
of Maharashtra, Goa, Karnataka, Kerala and Madhya Pradesh. M/s A Gupta &
Associates, Chartered Accountants, Jammu for the UT of J&K are appointed as
GST Auditors for the nancial year 2018-19 under section 35(5) of CGST Act 2017
read along with rule 80 and u/s 35(5) of SGST Act 2017 for GST Audit.
Internal Control Systems and their adequacy
The Corporation has robust Internal Systems and processes in place for smooth
and efcient conduct of business and complies with relevant laws and
regulations. It has adequate system of internal nancial controls in place, in the
form of well documented delegation of power, policies and procedures, that cover
critical as well as important activities of nancial and other operating functions for
safeguarding of assets, prevention and detection of fraud and error, ensuring
accuracy and completeness of the accounting records and timely preparation of
reliable nancial information.
44
28.5 The procedures are in the form of manuals, guidelines, delegation of powers and
28.6 IT system and controls which are affected through people operating in various
departments within the Corporation at different levels at each stage of the
29. processes. These are designed to ensure compliance with the internal nancial
controls as detailed in the Companies Act, 2013 and prevalent on Indian
Railways. In order to ensure that all checks and balances are in place and all
internal control systems are in order, regular and exhaustive internal audits are
conducted by experienced independent rms of Chartered Accountants in close
co-ordination with Corporation's own internal audit Department.
Internal Audit covers all areas of operation of the Corporation, as per annual
Internal Audit Program. Internal Audit helps in improving accuracy and efciency
of transactions and operations by undertaking review of in-built controls, scrutiny
of payments and expenditure and examination of nancial and technical records
of the Corporation. The internal audit reports for Financial Year 2019-20 were
received on quarterly basis and their observations were taken up at the
management level. A summary of Audit Observations and Action Taken Reports
were regularly placed before the Audit Committee and the recommendations of
the Audit Committee were duly complied with by the Corporation.
Secretarial Auditor
The Board of Directors appointed M/s. Rupali Abhyankar & Co., Practicing
Company Secretaries, to conduct Secretarial Audit for the year 2019-20. The
Secretarial Audit Report for the year ended March 31, 2020 is placed at Annexure
– 1.
Maintenance of Cost Records
The Corporation is not required to maintain cost records as specied by the
Central Government under sub-section (1) of section 148 of the Companies Act,
2013, as it falls under table of non-regulated sectors under heading as “Railway or
tramway locomotives, rolling stock, railway or tramway xtures and ttings,
mechanical (including electro mechanical) trafc signaling equipment's of all
kinds; (8601 to 8609) for the reason that, the provision of Chapter Codes and
description (ITC HSN) is applicable for the company which is in production of
Railway or tramway locomotives, rolling stock, railway or tramway xtures and
ttings, mechanical (including electro mechanical) trafc signaling equipment's
of all kind.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Corporation prepared in
45
accordance with the provisions of the Companies Act, 2013 and the relevant
Indian Accounting Standards (Ind AS) form part of the Annual Report of the
Corporation.
30. E X P L A N AT I O N O R C O M M E N T S B Y T H E B O A R D O N E V E R Y
QUALIFICATION, RESERVATION, ADVERSE REMARK OR DISCLAIMER
MADE BY THE SECRETARIAL AUDITOR, STATUTORY AUDITORS &
COMPTROLLER AND AUDITOR GENERAL OF INDIA:
Secretarial Auditor's Report: The comments of the Secretarial Auditor and
Management reply thereto has been placed at Annexure – 2.
Statutory Auditor's Report: The comments of the Statutory Auditor and
Management reply thereto has been placed at page no. 132.
Comments of Comptroller and Auditor General of India: The comments of the
Comptroller and Auditor General of India has been placed at page no. 151.
Frauds reported by the Auditors: No fraud has been reported by the Statutory
Auditor or Secretarial Auditor of the Corporation.
31. CORPORATE GOVERNANCE
Philosophy on Corporate Governance: The Corporation's philosophy on
Corporate Governance is based on the principles of honesty, integrity,
accountability, adequate disclosures, legal compliances, transparency in
decision making and avoiding conicts of interest. The Corporation gives
importance to adherence to adopted corporate values and objectives and
discharging social responsibilities as a good corporate citizen. The Corporation
believes in providing excellent services to the Shareholders and Customers
including ensuring safety to the passengers and improving the productivity
through efciency in all spheres of activities. The motto of the Corporation is
“Sadar Seva” summarizing the ethos of the Corporation. The Corporation, being
a Government Company, its activities are monitored by several external agencies
like the Secretarial Auditors, Statutory Auditors, the Comptroller & Auditor
General of India, the Central Vigilance Commission (CVC), Parliamentary
Committees, etc. Corporation structure, business and disclosure practices have
been aligned to the Corporate Governance Philosophy.
In order to uphold the highest standards of corporate governance, the
46
Corporation has implemented, both in letter and spirit, the guidelines enunciated
by the Department of Public Enterprises, Government of India, on Corporate
Governance. For effective implementation, the following good governance
practices have been put in place:
• Code of Conduct for Board of Directors and Senior Management
•
• Integrity Pact for Vendors
• Systems in place for ensuring compliance of Applicable Laws, Rules &
• Regulations
•
• Whistle Blower Policy
32. Corporate Social Responsibility Policy
Risk Management Policy
Conduct, Discipline and Appeal Rules for Employees
BOARD OF DIRECTORS
The Board of Directors headed by Chairman & Managing Director, is the apex
body which oversees the overall functioning of the Corporation. The Board has
approved a 3rd Corporate Plan 2017-2022 which indicates the overall direction to
the Corporation. It is vested with the ultimate responsibility of the management
and performance of the Corporation. The Board has its Charter and accordingly,
decisions of the Board are aligned to serve in the best interest of the Corporation.
The Board frames policies and programs and oversees its implementation. It has
constituted following ve (5) Sub-Committees to assist in the management of the
day-to-day affairs of the Corporation and to facilitate a smooth and efcient ow of
decision-making process.
1. Audit Committee,
2. Nomination & Remuneration Committee,
3. Risk Management Committee,
4. Corporate Social Responsibility & Sustainability Committee and
5. Shareholders' Committee (Stakeholders' Relationship Committee)
The Corporation, being a 'Railway Administration' under the Indian Railways Act,
1989, is a member of Indian Railways Conference Association (IRCA) and follows
the operating and commercial rules framed by Ministry of Railways from time to
time.
47
The Board of Directors consists of fourteen Directors, out of which four are
functional Directors including Chairman and Managing Director, Director
(Finance), Director (Way & Works) and Director (Operations & Commercial). Two
Nominee Directors from Ministry of Railways, one Nominee Director from each
participating state (Maharashtra, Karnataka, Goa and Kerala) are part- time ofcial
Directors and there are four part-time Non-ofcial Directors (Independent
Directors) in the Board. The Corporation, being a Government Company under
Section 2(45) of the Companies Act, 2013, its functional Directors (Executive) and
part-time Non-ofcial Directors (Independent Directors) are appointed by the
Department of Public Enterprises (DPE), the President of India nominates two
Directors representing Ministry of Railways and Governor of each participating
State nominates an Ofcer of the rank of Secretary or above as the Director in the
Corporation.
The details of the Directors on the Board of the Corporation during the period from
01 April, 2019 to 31 March, 2020 and as on date of this report are given below:
Shri Sanjay Gupta 13.10.2019*
Director (Finance) & CFO
25.07.2020
Executive Director, F/E-1/Railway Board 10.12.2019
Shri Vinay Srivastava
Executive Director (PSU)/ Railway Board,
DIN 08638850
48
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