1. Rights, Preferences and Restrictions attaching to shares

Equity Shares: The Company has only one class of Equity Shares having face value of H 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their share holding. All equity shareholders are having right to get dividend in proportion to paid up value of each equity share as and when declared.

Nature and Purpose of Other Reserves:

(a) Retained Earnings

Retained Earnings represent undistributed profits of the Company.

(b) General Reserve

General Reserve is a free reserve which is created from retained earnings. The Company may pay dividend and issue fully paid-up bonus shares to its members out of the general reserve account, and company can use this reserve for buy-back of shares.

(c) Items of Other Comprehensive Income

The Company has elected to recognize changes in fair value of investment in equity securities of Indian Port Rail and Ropeway Corporation Limited in other comprehensive income. The changes are accumulated within the FVTOCI equity investments reserves within equity. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognized.

Terms of Repayment:

(i) There is a moratorium period of 3 years for each year’s loan. During the said moratorium period, no amount on account of interest and principal shall be payable. The interest shall be charged on yearly basis and repayment of loan shall be once in a year (for a period of 12 years) after the completion of moratorium period. Ministry of Railways would make available to RVNL the required funds thereafter, to enable them to do the debt servicing. The debt servicing will pass through RVNL books.

(ii) The Company has not borrowed any funds during this F.Y 2022-23 (Previous year 2021-22: H 700 crore) from Indian Railway Finance Corporation (IRFC). The outstanding borrowing is Rs 5,341.65 crore as on 31.03.2023 (as at 31.03.2022 : H 5621.60 crore) , which includes current liability i.e. repayable in next twelve months Rs 377.28 crore (as at 31.03.2022: H279.95 crore).

(iii) The Interest Liability has been assessed on the amount disbursed in the F.Y. 2006-07 to 2022-23 by applying the Interest rate as advised by the IRFC for each Financial year (2022-23- No disbursement, 2021-22: 7.64%, 2020-21: 7.73%, 2019-20: 8.42%, 2018-19: 9.17% & 8.93%, 2017-18: 8.82%, 2016-17: 8.19%, 2015-16: 8.68%, 2014-15: 9.56%, 2013-14: 9.60%, 2012-13: 9.41%, 2011-12: 10.12%, 2010-11: 9.12%, 2009-10: 8.92%, 2008-09: 9.96%, 2007-08: 10.24%, 2006-07: 9.73%). The interest accrued but not due on the IRFC loan amount has been shown in the Balance Sheet as recoverable from MoR under Current Assets & Non-Current assets (for the interest non recoverable in next 12 Months) and the interest payable but not due under the Current Liabilities and Non-Current Liabilities (for the interest not payable in next 12 Months) payable to IRFC.

Foot Note

16.1 Foreign Service Contribution :

Foreign Service Contribution in respect of officers on deputation with RVNL, is recognised on accrual basis in the statement of profit and loss account as per the terms of deputation with their parent organisations.

16.2 For RVNL Employees

The disclosure required under Indian Accounting Standard-19 “Employee Benefit” in respect of defined benefit plan is:

Sensitivity analysis:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the statement of financial position.

20.1 In accordance with Railway Board’s letter No. 2004/W-1/RVNL/15 dated 04.01.2012 RVNL has accounted Consolidated Management fee @ 9.25% in case of Metro Projects and 8.50% in case of Other Plan Heads on the expenditure incurred by RVNL on MoR projects. As per the directions of MoR, all expenditure in the nature of consultancies related to Project Management are being charged directly to project. D&G charges payable to Railway up to 0.25 % of cost of projects are allocated to the projects on actual funds released to the respective Zonal Railway, expenditure incurred on D&G (Supervision) are being charged to the Statement of Profit & Loss. The miscellaneous receipts from sale proceeds of Tender and other income has been credited to the Statement of Profit & Loss.

20.2 In respect of SPV projects, construction works have been undertaken by RVNL as per the terms and conditions of the Model Construction agreement for execution of SPV Projects issued by MoR and revenue recognised accordingly.

22.1 Expenditure against contracts awarded by the Company is recognized on completion of measurements and testing certified by the Engineer.

22.2 Expenditure of execution of projects done by the Zonal Railways on behalf of the Company on MoR projects is accounted for on the basis of statement of estimated expenditure received from respective Zonal Railways and is adjusted allocation-wise as and when the final expenditure statement is received.

22.3 With the rationalisation of the revenue stream of RVNL, the expenses incurred on supervision and monitoring directly allocable to the projects have been reviewed in terms of Railway Board’s letter no 2004/W-1/RVNL/15 dated 04/01/2012, the pattern of booking of expenditure on Zonal Railways and general accounting practices. The expenditure incurred on this account related to execution of Deposit Works (for SPV’s and others) have been charged to the Statement of Profit and Loss.

26.1 CSR Expenses

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on Corporate Social Responsibility (CSR) activities.

A. Gross amount required to be spent by the Company during the Current Year H 23.68 crores (Previous year H 19.36 crores).

#Nature of CSR activities:- The areas for CSR activities are promotion of education, eradicating extreme hunger and poverty, promoting gender equality and empowering women and reducing child mortality and improving maternal health.

#Amount calculated as per Section 135(5) of the Companies Act, 2013

The tax rate used for the FY 2022-23 reconciliations above are the corporate tax rate of 34.944% payable by corporate

entities in India on taxable profits under the Indian tax laws. Government of India through “The Taxation Laws (Amendment) Act, 2019” has inserted Section 115BAA of the Income Tax Act, 1961, whereby a domestic company has an irrevocable option of exercising for a lower corporate tax rate along with consequent forego of certain tax deductions and incentives, including accumulated MAT credit eligible for set-off in subsequent years. The Company is in the process of evaluating the benefit of exercising the option for a lower corporate tax rate vis-a-vis the existing provisions. Pending exercising of the option, the Company continues to recognize the taxes on income for year ended March 31, 2023 as per the earlier provisions.

NOTE: 29 DIVIDEND

The Board of Directors has recommended the final dividend of H 0.36 per equity share having face value of H 10 each for the financial year 2022-23, subject to the approval of the shareholders at the ensuing Annual General Meeting. This is in addition to the interim dividend of H 1.77 per equity share paid during the year.

Further, Company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. Company has borrowed the funds form IRFC for railway projects. For repayment of IRFC loan, Ministry of Railways would make available to RVNL the required funds thereafter, to enable them to do the debt servicing. The debt servicing will pass through RVNL books.

i) The carrying amounts of trade receivables, trade payables, unbilled revenue, cash and cash equivalents and other short term trade receivables and payables which are due to be settled within 12 months are considered to the same as their fair values, due to short term nature.

ii) Long term variable rate borrowings and lease receivables are evaluated by Company on parameters such as interest rates, specific country risk factors and other risk factors. Based on this evaluation the fair value of such payables are not materially different from their carrying amount.

iii) The fair value of Security Deposits, Performance Security Deposit, Miscellaneous Deposit and Retention Money are calculated based on cash flows discounted using current market rate. Average SBI fixed deposit rate i.e 6.05% is being considered as discounting rate for financial Assets and Average SBI Lending rate i.e 8.70% is being considered as discounting rate for financial liability for the FY 2022-23. They are classified as level 3 fair values in fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

iv) Investment in unquoted equity of subsidiaries and joint ventures are stated at cost as per exemption provided by Para 10 of IND-AS 27.

v) Staff loans and advances have been continued at carrying value as measurement implications are immaterial.

vi) RVNL determined fair value of investment those are carried through Other Comprehensive Income based on adjusted intrinsic value, through independent valuer. Valuation of Investment of Indian Port Rail & Ropeway Corporation Limited is based on financial statements for 31st March 2023 as financial statements for the year ended on 31st March 2023 of the Indian Port Rail & Ropeway Corporation Limited are not available. Based on the valuation, no changes has been made and investment is shown at its original cost.

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 assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived form 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

amortised cost/Fair Value:-

The Company’s principal financial liabilities comprise Borrowings from IRFC, trade payable and other payables. The Company’s principal financial assets include trade and lease receivables and cash & cash equivalents that are derived directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s financial risk activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with the company’s policies and risk objectives. The board of directors reviews the policies for managing each of these risk, which are summarised below:-

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 has only loan from I RFC, the payment of interest and repayment of principal of that is ensured by the Ministry of Railways; therefore the risk related to said loan is Nil, debt servicing will pass through RVNL books only.

ii) Foreign Currency Risk

The Company takes services from countries outside India for projects and is exposed to foreign currency risk arising from such foreign currency transactions. Due to immateriality of foreign exchange amount, Company does not hedge any 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 in respect of financial instruments and the risk is negligible since the receivable are mainly from Ministry of Railways and State Governments. Also Company does not have any history of bad debts.

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 with counterparty on the basis of the financial quotes received from the counterparty.

c) 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.

Note 32 Key sources of estimation uncertainty

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 with next financial year.

a) Fair valuation measurement and valuation process

Financial instruments are measured initially at fair value and subsequently at amortised cost on the basis of materiality, transaction value upto H12.00 lakhs are measured at fair value on initial recognition and subsequently at amortised cost on group basis by considering that the amount is recoverable or payable at a average period of 5 years and Income and amortisation on such financial instruments has been considered on yearly basis. Transaction value of H

12.00 lakhs or more are measured at fair value at initial recognition and subsequently at amortised cost on individual transaction basis. Impact of fair valuation of Staff loans and advances are immaterial therefore it has been continuing at the carrying value.

The fair values of financial assets and financial liabilities is measured the valuation techniques including the DCF model. The inputs to these method are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing 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. See Note 31 for further disclosures.

b) Taxes

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

c ) Borrowings from IRFC and Lease Receivables from Railway

Company has borrowed funds from Indian Railway Finance Corporation for the purpose of construction of railway projects. There is a moratorium period of 3 years for each year’s loan. During the said moratorium period, no amount on account of interest and principal shall be payable. The interest shall be charged on yearly basis and repayment of loan along with interest

shall made be once in a year (for a period of 12 years) after the completion of moratorium period. Ministry of Railways would make available to RVNL the required funds thereafter, to enable them to do the debt servicing. The debt servicing will pass through RVNL books. Accordingly, funds are received by RVNL on each year from MoR and the same is transferred to IRFC. Therefore, there is no impact on Statement of Profit & Loss of the Company.

i) Trade receivables are non-interest bearing except receivable from related party amounting to Rs 819.92 crore after allowance for Expected Credit Loss of H 0.78 crore (Previous year 846.35 crore) which are interest bearing at SBI base rate 1%. Customer profile include Ministry of Railways, Public Sector Enterprises and State Owned Companies in India. The Group’s average project execution cycle is around 24 to 36 months. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 60 days.

ii) Contract Assets are 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. It includes balances due from customers under construction contracts that arise when the Company receives payments from customers as per terms of the contracts, however the revenue is recognised over the period under input method. 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.

iii) Contract liabilities relating to construction contracts are balances due to customers, these arise when a particular milestone payment exceeds the revenue recognised to date under the input method and advance received in long term construction contracts. The amount of advance received gets adjusted over the construction period as and when invoicing is made to the customer.

NOTE: 37 CONTINGENT LIABILITIES

37.1 Claims Against the Company not acknowledged as debts:

In respect of claims pending under adjudication in arbitration invoked by the Contractor not acknowledged as debts by the Company are Rs 3,276.71 crore as at 31 March 2023 (Previous year H 2,295.56 crore). The cases pending in courts involve an amount of Rs 551.99 crore as at 31st March 2023 (Previous year H 625.59 crore). All the claims, if become payable, will form part of the project cost and reimbursable by respective clients.

37.2 Direct taxes:

Income- tax demands raised by the Income-tax department as at 31st March 2023 is aggregating to Rs 1,442.52 crore (Previous Year H 0.02 crore) and Company has not accepted the claim and submitted its appeal to department as follows:-

37.3. Indirect taxes:

a). Service Tax

In respect of Service-tax, the company has received show cause notice from Director General Goods & Service Tax Intelligence, Delhi Zonal Unit raising a demand of Rs 279.46 crore (Previous year Rs 233.83 crore) for nonpayment of service tax for the period from July 2012 to June 2017 under forward/reverse charge mechanism on services provided/ received to/by Ministry of Railway and Zonal Railways contested by the company. The Company has received order from Additional Director General(Adjudication) dated 24.08.2021 reduced the demand to 148.68 crore plus applicable interest and imposed penalty of H 130.78 crore .The Company has filed an appeal before CESTAT, New Delhi against the said demand. If the liability is decided against the Company in future ,the same will be borne by Ministry of Railways.

37.4 National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange (BSE) have levied a fine of H0.99 crore (Previous year H 0.59 crore) for non-compliance with the requirements pertaining to the composition of the Board and its committees for the year ended on March 31, 2023, March 31, 2022, March 31, 2021 and March 31, 2020. Directors of the Company are appointed by the Government of India and the Company has no role to play in this regard and accordingly has requested Stock exchanges for waiver of fine.

37.5 Amount of Letter of Credit/Bank Guarantee as on 31 March 2023 is H 1,191.64 crore (Previous year: H 407.39 crore)

NOTE: 38 CAPITAL COMMITMENT:

- Contribution towards share capital in Joint Ventures is H 163.25 crore (Previous Year: H7.55 crore).

- Contracts awarded for construction of flats is H 2.81 crore (Previous Year: H 11.00 crore).

- Office Premise at World Trade Center, Nauroji Nagar New Delhi being constructed by NBCC H 270.28 crore (Previous Year: H 321.32 crore)

- Implementation of ERP is Nil (Previous Year: H 5.53 Crore)

38.1 Other Commitment

Commitment towards Contractual Payments of Project expenditure is H 56,019.00 crore (Previous Year: H49,786.51 crore).

i) One of the former employees Mr. Devendra Singh on deputation from Indian Railways has filed a writ petition on 22.07.2010 against the Company in respect of dues on account of difference in pay scales. The impact of the same has not been quantified in the writ.

ii) During the financial year 2014-15, Company received a show cause notice from the Director General of Central Excise Intelligence, regarding the liability of Service Tax of H106.80 crore and interest and penalty thereon. The Company has not accepted the liability and has submitted its reply to the Show Cause Notice on 06.01.2015. A personal hearing has also been held in this regard on 21.09.2015 before the Principal Commissioner of Service Tax, Delhi-I. A similar statement of demand cum show cause notice has also been received for F. Yr. 2014-15 on 05.04.2016 in which a demand of H41.04 crore has been raised. It has also been replied on 24.05.2016. For F.Y. 2015- 16, 2016-17, 2017-18 (upto 30.06.2017), the statement of demand cum show cause notice in which a total demand of H105.83 crore cum show cause notice was served on 22.03.2018, which was replied on 18.05.2018.

iii) Western Railway has carried out the work of elimination of 30 level crossings by converting them into mannad or by construction of RUB /LHS against the estimate of H 10.63 crore. H6.93 crore has been deposited by the company towards this work till 31-03-2021 . For elimination of unmanned level crossing, Railway Board has issued instructions that the cost shall be borne by Railways, Whereas WR is of opinion that this amount should be borne by SPV/Company. Accordingly Company has requested to WR to refund the amount of H6.93 crore paid to WR towards elimination of unmand level crossing.

iv) As per the Construction Agreement for Palanpur-Samakhiali doubling, there is a provision for contingencies of .5% as mentioned in estimated project cost.

Share in Capital commitment: Rs 421.09 crore (Previous Year H 440.48 crore)

(i) Landowners (from whom land was purchased) have filed various cases from time to time for enhanced compensation. The amount of claims pending as at year-end is not quantifiable.

(ii) I ncome-tax amounting Rs 0.83 crore (Previous year H 0.83 crore) pertains to the AY-2010-11. 2013-14, 2014-15 & 2017-18.

(iii) A sum of Rs 13.27 crore up to 31 March 2022 ( Previous year H 6.59 crore ) towards interest and other changes demanded by M/s RVNL.

Share in Capital Commitments:

(i) Estimated amount of works remaining to be executed on capital account (based on EPC cost) and not provided for Rs 4.46 crore (Previous Year H 23.22 crore).

Share in Contingent liabilities:

(i) Department has raised demand in respect of alleged offence of evasion of Service Tax amounting to H 3.77 crore (Previous year H 3.77 crores) and H 1.42 crore (Previous year H 1.42 crores) for financial year 201415 and 2015-16 respectively. Also department has raised demand of H 1.47 crore (Previous year H 1.47 crores) for the F.Y. 2016-17 and 2017-18 (upto June’17), However Company has not accepted the liability and has submitted its reply to department. Since the Company had earlier received favorable ruling from CESTAT, it is confident that no additional liability will devolve on it. Further for the period F.Y. 2011-12 to F.Y. 2013-14, KRCL has received favourable order from CESTAT for demand of H 6.68 Crore (Previous year H 6.68 crores), In case of similar companies on same matter department has moved to Hon’ble Supreme court in this case. During the F.Y. 2019-20 Income-tax Department has moved to Hon’ble High Court of Delhi in respect of Tax demand of H 2.57 crore (Previous year H 2.57 crores) for A.Y. 2011-12, Company has already received favorable order from ITAT in this case. Therefore, liability for this case has not been recorded in the books of Accounts. Arbitration proceedings are going with MoR.

(ii) During the previous years, company has received certain bills under protest from contractor pertaining to phase 1 on which a future liability may arise. Financial impact of the same is not ascertainable at present.

(iii) Contingent liability in respect of departmental charges not claimed by RVNL @ 5% of project cost is estimated at Rs 56.83 crore (Previous year H 56.79 crores).Share in Capital commitment: NIL (Previous Year NIL)

(i) In respect of Land dispute in Gujarat Court is H 0.49 crore (Previous Year H 0.49 crore) against which company has deposited H0.11 crore (Previous Year Rs 0.11 crore) in lieu of instructions made by High Court of Gujarat for admission of appeal.

(ii) Contingent liability related to service tax for the FY (2011-12 to 2017-18) H 20.51 crore (Previous Year H 20.51 crore).

(iii) The O & M expenditure pertaining to Bharuch-Chavaj section has been provided in financial statement to the extent information provided by Western Railway and information available with company, remaining O & M will be provided in the year in which information will be received from Railways.

(iv) Company has terminated some contractual employees, due to misconduct at workplace and unauthorised absence from office, aggreived by the decision of the company employees have filed application with labour court for compensation towards their termination. However, based on the facts of the case, company expects favourable decision. Financial impact of the same is not ascertainable.

(v) M/s RVNL has demanded management fees of H6.51crore (H 6.51 crore upto 31 March 2016 ) upto (1 April 2015 H6.43 crore) towards construction of projects.

(vi) The Company has received an claim of Rs 2.47 crore from Rail Vikas Nigam Limited (RVNL) pertain to arbitral award matter between M/s Larsen & Toubrp (L&T) and RVNL arising out of the contract for gauge conversation of Bharuch Sammi-Dahej Section. The claim of Rs 1.94 Crore has been accepted by the company till the 31.03.2023 and remaining amount has not been accepted by the Company till dated and evaluation of the claim amount is under process.

Share in Capital commitment:

(i) Capital commitment in respect of S&T Work-project H 0.66 crore (Previous year H 0.66 crore)

Share in Contingent liabilities:

(i) During the Financial Year 2022-23, Company received a show cause notice dated 28.09.2022 from the Principal Commisioner (Audit) Central GSt & Central Excise Bhuwaneshwar, reagrding the liability of irregular availment of ITC amounting to H 0.02 crores along with the interest under section 50 of CGST Act, 2017 and also Penalty under section 73 of the CGST Act.The Company has not accepted the liabilty and has submitted its reply to the Show Cause Notice on 02.11.2022.

(ii) During the Financial Year 2022-23, Company received a show cause notice dated 28.12.2022 from the Principal Commisioner (Audit) Central GSt & Central Excise Bhuwaneshwar, reagrding the liability of H 1.09 crores od non payment of GST and also interest and penalty under CGST Act on amount received towards supply of work contract services from its client.The Company has not accepted the liabilty and is in process to reply the Show Cause Notice shortly.

(iii) During the Financial Year 2022-23, Company received a show cause notice dated 23.12.2022 from the Principal Commisioner (Audit) Central GSt & Central Excise Bhuwaneshwar, reagrding the liability of irregular availment of ITC amounting H 68.69 crores along with the interest under section 50 of the CGST Act, 2017 and also Penalty under section 73 of CGST Act.The Company has not accepted the liabilty and is in process to reply the Show Cause Notice shortly.

3. The company does not have any lease restrictions and commitment towards variable lease rent as per the contract.

4. Company has no commitments towards Leases yet to be commenced as on 31.03.2023.

5. The company has not sub-leased any of the assets taken on lease.

II. The Company elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (‘short- term leases’) and lease contracts for which the underlying asset is of low value (‘low-value assets’).

NOTE: 45. Additional reporting requirement (Schedule III):

(i) The Company does not have any Benami Property and further no proceedings has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any pending charges or satisaction to be registered with ROC.

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

(v) The Company does not have any 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 Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vi) The Company has no loans and advances which are either repayable on demand or are without specifying any terms or period of repayment.

(vii) The Company has not been classified as willful defaulter by the Bank or Financial Instituitions

(viii) The Realisable Value of financial assets of the Company is not lower than value disclosed in financial statements and subject to confirmation.

Note 46. Operating Cycle

Earlier, the operating cycle of the Company was more than 12 months and extends upto 5 to 6 years based on the time required from initiation of the project to completion of the project. Now the operating cycle of the Company is 12 months after change in procedure order of MoR in respects of transfer of PWIP as per the note no 9.

Note 47. Securities released to State Electricity Board/Public Companies

Securities paid to Electricity Boards/ Public Companies towards provision of High Tension Power Lines for electricity connections are booked as project expenditure being part of the project cost.

Note 48.

In respect of Krishnapatnam Railway Company Limited (KRCL), RVNL is entitled for departmental charges @ 5% of the total cost of work as per the detailed estimate/revised estimate/completion estimate as provided in paragraph 1137 of the Code for Engineering Department of Indian Railways. RVNL has received representation from KRCL for waiver of the aforesaid departmental charges apart from other relaxations from contractual obligations. Based on the representation made by KRCL, the management of the Company has decided to keep in abeyance the claim of the said departmental charges pending detailed review of the subject matter by the Board of Directors of the Company.

Note 49.

Balances of some of the Trade receivables, Other assets, Trade and Other payables accounts are subject to confirmations/reconciliations and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any material financial impact of such pending confirmations/reconciliations.

Note: 50 Reclassifications and comparative figures

Previous year figures has been rearranged, regrouped and reclassified/ recasted to make them comparable with those of the current year. The details of which are as under:

Note: 52

Previous year figures has been reaaranged, reclassified and regrouped to make them confirmatory with current year reported figures.