1. HASSAN MANGALORE RAIL DEVELOPMENT COMPANY LIMITED
PROFILE

2. Board of Directors Mrs. Vandita Sharma IAS
Principal Secretary to GoK – IDD
Chairman
Mr. M N Vidyashankar IAS
Principal Secretary to GoK – C&I
Director
Mr. Niraj Kumar IRTS
Executive Director Perspective Planning Railway Board
Mr. N C Sinha IRTS
Chief Operations Manager, S W Rly
Mr. Vinod Kumar IRTS
Divisional Rly Manager, Mysore
Dr. P Tamilvanan
Chairman New Mangalore Port Trust
Mr. Anil. B. Shenoy
CFO & Company Secretary, Infrastructure Dev Co. Karnataka Ltd
Mr. Ashwin Paul
Head Commercial, MEL
From Railways
CEO

3. The Beginning
Hassan Mangalore Rail Development Company Limited was incorporated in July 2003 under the Companies Act of 1956 as a joint venture of the Government of Karnataka & the Ministry of Railways.
Objective: HMRDC to take over the gauge conversion of the Hassan Mangalore railway line and ensure its early completion through appropriate and timely funding.
The company was to raise the required resources through debt and equity.

4. Project Implementation
The gauge conversion of the line has been completed under a set of agreements signed by the Company with the Ministry of Railways and the South Western Railway.
Concession Agreement
Construction Agreement
Operations and Maintenance Agreement
The line was commissioned for goods traffic on 5th May 2006 and for passenger services on 8th December 2007.
Company is enjoying Tax Holiday under section 80-IA of the Income Tax Act for 10 years from COD.

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

6. Capital Structure
Authorized share capital   `. 125 Cr (Equity share of Rs.10/- each)
Paid up capital  `. 112 Cr.
The shareholding pattern is as follows
  Government of Karnataka    `.28 Cr
Mysore Sales International Ltd. `. 7 Cr 40%
Vishveshwarya Ind Trade Center `. 10 Cr    
  Ministry of Railways  `. 45 Cr 40%
   New Mangalore Port Trust    `. 10 Cr 9%
  Mineral Enterprises Limited `. 10 Cr 9%
  K-RIDE `. 2 Cr 2%

7. Construction Agreement
Under the Construction Agreement signed between HMRDC and South Western Railway (SWR) the later has been appointed as the Engineering, Procurement and Construction (EPC) Agency for the line and entrusted with the construction work. 
O & M Agreement
Under the Operations and Maintenance Agreement HMRDC has contracted with SWR for operation of goods train services on the line and its maintenance till the termination of the concession period. 

8. Project Financing Initial Project Cost `. 293 cr
Construction Cost `. 275 cr
RMV Equipment ` cr
Pre-operative exp & IDC ` cr
Revised Project Cost `. 366 cr
Construction Cost `. 348 cr
Funding through
Subordinate debt from IR `. 141 cr
Equity `. 112 cr
Term loans from banks ` cr
Revised construction cost is under examination for mutual acceptance.

9. Concession Agreement
Under the Concession Agreement, the Ministry of Railways has granted HMRDC a concession for 32 years during which the company would convert the MG line between Hassan and Mangalore into a BG line and thereafter undertake its operation and maintenance during the concession period. 
To enable construction of the new line, the existing assets including land, station buildings, formation, bridges etc. (assets forming part of the rail network and necessary for gauge conversion) have been leased to the company.

10. Construction of the line
Detailed estimate sanctioned by Rly Board in Dec 2002 forms the basis of the construction agreement.
The 183 Km long MG line from Hassan to Kankanadi has been converted to BG.
Four new crossing stations were planned of which three have been commissioned so far. Arebetta station is yet to be opened.
The cost of construction as per the Construction Agreement is ` Cr. In addition, HMRDC has also paid for rail mounted vehicles to be used for inspection & maintenance of the line.
The completion cost of the project is presently being worked out. It is expected to be around `. 340 cr.

11. Operations & Maintenance of the line
The Operations and Maintenance of the line from Commercial Operations Date (COD) i.e. 5thMay 2006 is being done by SWR under the terms of the O & M agreement.
100% inflation of distance is allowed for the Ghat section of 55Km between SKLR-SBHR, thus making chargeable distance to Km from the actual distance of KM between HAS-MAQ (Rate circular No. 32 of 2006)
Freight due to HMRDC from traffic carried on the line is calculated as per the inter zonal railway rules of apportionment.
O & M ( Fixed & Variable) costs payable by HMRDC are calculated on the basis of the formula prescribed in the O & M agreement.
Fixed costs covering cost of manpower, cost of consumables etc. are payable irrespective of the traffic moved.
Variable costs including fuel, cost of crew, loco and wagon usage etc. vary according to the tonnage carried on the line.
Apportioned freight minus the O&M costs constitutes HMRDC’s share of revenue.

12. Traffic Forecast Towards Mangalore Area:
The Hassan Mangalore line is expected to carry up to six million tonnes of freight per annum that includes
Towards Mangalore Area:
Export iron ore to Port from Chitradurga – Tumkur and Hospet –Bellary sectors. Presently Banned in Karnataka.
Iron ore for KIOCL pellet plant at Mangalore – Presently Banned in Karnataka
Cement, Food grains and other general goods to Mangalore/ South Kerala area
From Mangalore Area:
Coal
Fertilizer imports
Limestone, Iron Ore Pellet – Presently not moving from Last 2 years.
Fertilizer from MCF Mangalore, Ernakulam Kerala area, Trombay Bombay area .
Food Grains from North India to Karnataka and Kerala.
POL and LPG from Mangalore Refinery, Thokkur to Bangalore.

13. Section Elevation (MSL)
Salient Physical Features of Hassan - Mangalore Section
Sl.No.
Section Elevation (MSL)
Distance
Gradient 1
Hassan – 900m
42 kms.
1 in 100 plateau 2
Sakleshpur – 967m 3
Sakleshpur  – 967m
55 kms.
1 in 50 Ghat 4
Subramanya Rd. – 113m 5
Subramanya Rd.  – 113m
86 kms.
1 in 100 plain 6
Mangalore – 9.5m

14. Hassan to Mangalore – 183 Kms
    A. Rails
Hassan to Mangalore – 183 Kms
Main line track
 class I  -  52 Kg rails
Loop line
 class II - 52 Kg  rails
    B. Sleepers
Hassan  to Sakleshpur
60 Kg PSC sleepers  - M+ 4 density
Sakleshpur to Mangalore 
60 Kg PSC sleepers  - M+ 7 density
Loop lines
52 Kg PSC sleepers  - M+ 4 density
    C. Fittings 
       Class - I fittings -  ERC Clips, GR pads, metal liners in mid section and GFN liners in yards
    D. Ballast mm cushion.

15. 3. Bridges - Total   Major Bridges – 91   Minor Bridges – 549   Road over bridges – 16   Road under bridges – 12   FOB –2
4. Tunnels - Total Nos. 57
Total length      -  kms.     Longest tunnel -  578 mts
No.11
5. Level Crossings - Total -  65
Manned    – 31   Unmanned - 34
8. Slip Sidings   
Donigal,
Shrivagulu
6. Curves - Total – 110   
Nos.-   30 to Nos
7. Catch Sidings
  Donigal station –
Shrivagilu
Yedakumeri - Proposed

16. Details of Block Stations and Halts in Hassan-Mangalore
S.No
Name of Station
Jurisdiction
Location at (kms)
Inter Dist 1
Hassan (HAS)
S W R
00.00
0.00 2
Alur (ALUR) H M R D C
13.38 3
Balupete (BLLT)
27.53
14.15 4
Sakleshpur (SKLR)
42.06
14.53 5
Donigal (DOGL)
49.64
7.58 6
Kadagaravalli (KVGL)
59.30
9.66 7
Yedakumeri (YDK)
67.23
7.93 8
Arrebetta (TO BE COMMISSIONED)
75.00
7.77 9
Shrivagulu (SVGL)
85.35
10.35 10
Subramanya Road (SBHR)
97.32
11.97 11
Bajakare (BAJE) – Halt
103.36
6.04 12
Kodimbala (KDBA) – Halt
106.61
3.25 13
Yedamangala (YDM)
111.85
5.24 14
Kaniuri (KNYR) – Halt
120.44
8.59 15
Narimogaru (NRJ)
129.74
9.30 16
Kabakaputtur (KBPR)
139.61
9.87 17
Neralekatte (NEHL)
150.10
10.49 18
Kalladaka (KLKD) – Halt
158.93
8.83 19
Bantwal (BNTL)
164.19
5.26 20
Faringapeta (FRG) – Halt
173.65
9.46 21
Padil (PDL)
S R
180.20
6.55 22
Mangalore Jn.
183.19
2.99

17. Line Capacity
The maximum number of trains that can be run in a day is Line Capacity which is decided by the time required to complete the journey by the slowest moving train in a critical block section.
The maximum permissible speed for all trains in the section between SBHR-SKLR is 30 KMPH
The Critical Block Section of HMRDC Line is DOGL-SVGL in the ghat section of SKLR-SBHR section, with the distance KM the running time for DOGL-SVGL section is 71 minutes (35.6/30*60)
All the down trains are required to stop and start at reception signal to check the brake power
There are two stations, each requires 3 mins i.e total 6 mins
Total time required for the journey is 77 min (71+6 min)
The total number of trains that can be run (Line capacity) =18.70 trains (1440/77)
Time required for maintenance works is provided to the extent of 1.7 train paths (130Min (77*70/100+77))
Balance paths remaining are 17 ( )
Total number of trains that can be run in a month 510 (17*30) i.e line capacity
Total number of passenger trains in a month that are running in the section is 85 i.e 1 daily train and 3 days a week [60+((6/7)*30=25)]=85
Total number of paths available for goods train/ MT/LE/CLE in a month 425 (510-85)
Total number of paths available for goods train/ MT/LE/CLE in a day 14
Efficiency factor is 80% of the capacity utilization i.e 340 trains (425*80/100) in a month

18. Operational Performance
`. - Crores
Particulars
(05/06-03/07)
Carried Tonnage (MT)
1.60
4.60
4.51
5.01
3.87
3.27
4.40
Earnings
36.71
133.54
188.19
163.63
116.63
71.35
115.21
O&M costs
17.68
66.72
74.49
91.01
76.14
67.05
83.94
Income from Operations
19.03
66.82
113.70
72.62
40.49
4.30
31.27
Deferred OH
4.14
11.37
11.39
12.36
10.15
8.98
11.17

19. Commodity wise Earnings (I)
`. - Crores
Commodity
Carr Tonn (MT)
Reve
% to tot Rev
Iron Ore Export
Domestic
Pellets
Total
0.81
0.02
0.00
0.83
21.68
0.55
22.23
59% 2%
---
61%
2.81
0.21
3.02
95.01
6.64
101.65
70% 5%
76%
2.45
0.05
2.50
146.76
1.19
146.88
78% 1%
1.78
0.16
0.06
2.00
94.81
4.13
1.47
100.41
58% 3%
Limestone
0.14
3.26 9%
0.61
14.25
10%
0.34
8.08 4%
0.74
16.82
Cement
0.01
0.24
2.82
0.35
7.48
0.31
6.48
Coal
0.15
2.55 7%
0.09
1.60
6.85
0.87
17.59
11%
F Grains/ Fertilizer
5.35
14%
0.49
8.28
0.76
12.78
13.81 8%
LPG/POL
0.12
2.94
0.26
7.05
6.08
0.29
8.48
Gypsum/ Others

20. Commodity wise Earnings (II)
`. - Crores
Commodity
Carr Tonn (MT)
Reve
% to tot Rev
Iron Ore Export
Domestic
Pellets
Total
0.44
1.24
0.00
1.68
39.86
30.97
70.83
34%
27%
---
61%
0.43
10.89 0%
15%
Limestone
0.20
4.52 4%
Cement
0.56
11.18
10%
0.70
15.56
22%
1.00
27.65
24%
Coal
0.29
5.47 5%
0.69
15.49
2.06
54.01
47%
F Grains/ Fertilizer
0.76
11.81
0.99
16.17
23%
0.89
18.81
16%
LPG/POL
0.36
12.23
11%
10.93
0.31
11.09
Gypsum
0.09
1.98 3%
0.13
3.50
Others
0.02
0.58 1%
0.006
0.19
0.3%
0.007
0.15
0.1%

21. Stock wise/Train Load Earnings 2012-13
Type of Wagon/ Commodity
Total No of Trains
Total Load (Million T)
Total Revenue
(Cr)
Load per Train (Tonnes)
Revenue per Train
(In Lakhs)
BOXN –
Iron Ore
Gypsum
Coal 33
531
0.13
2.06
3.50
54.01
3885
3874
10.60
10.17
BCN –
Cement
* Fert/ Food Gr
427
361
1.00
0.76
27.65
18.81
2347
2470
6.48
5.21
BTPG LPG
172
0.20
6.84
1175
3.98
BTPN POL 46
0.11
4.25
2380
9.24
BLC/BFKN –
Cont 9
0.07
0.15
736
1.67

22. Components of Fixed & Variable Costs
Fixed Costs
Variable Costs
Man Power
Cost of Fuel
Other than Man power
Cost of Crew
Direct Supervision Charges
Cost of Loco & Wagon Usage
Indirect Over Heads
Cost of Running Repairs of Wagons
Misc.
Documentation
Compensation Claim

23. Detailed Note on Components of Fixed Cost
Fixed costs:
Manpower costs :
The actual salary paid to the staff deployed on the section except crew.
Other than Manpower cost :
The cost of material/ stores required to keep the line fit for operations including contractors agreement entered for the same.
Direct supervision charges :
The cost not covered in the Manpower cost directly.
Indirect Overheads :
The costs which cannot be allocated to any known heads such as Medical, RPF, Pension etc. and paid on a percentage basis as per Yearly Summary of End Results published by Railway Board. This charge is deferred for ten years from the date of CoD.
Misc. :
E-460 Special Repair Breaches on actuals and B-700 Special Repair Accidents calculated on prorata GTKM basis.

24. Details of Man Power Cost since April 2009 Till June 2013
Month
Jan DA –22%
July DA –27%
Jan DA–35%
July DA–45%
Jan DA–51%
July DA –58%
Jan DA-65%
July DA –72%
Jan DA-80%
Jul DA –90%
April
May
June
July
August
September
October
November
December
January
February
March
Total

25. Effective Strength from June’12
Note on Manpower Cost
S.No
Name of the Department
Staff as per Agreement
As per Actual May 2012
Effective Strength from June’12
Actual Strength June’12
Strength as on June’13 1
S&T 59 51 52 2
Accounts 3
Mechanical 68 58 4
Engineering
390
263
109
372
357 5
Electrical 23 7 15 6
Operating
112 99
105
Total
655
481
590
591
Revised pay scales implemented and also 40% of the arrears w.e.f was released.
Rates of National Holiday, OT, Night Duty allowance etc also increased due to Pay Commission.
% of the PC arrears was released.
Though increase in DA is announced in January and June but the amount is released in April and September respectively.
Bonus is released in October.
Annual increment is in July.
Staff strength in Engineering Department has been increased by 109 in June’12 hence total strength in the section as on is 591 which is less by 64 with the agreement.

26. Detailed Note on Components of Variable Cost
Cost of fuel : (GTKM/1000)x(SFC)x(Rate per litre)
Cost of crew : GTKM basis (expenses of (MYS div/GTKM of MYS div) x (SPV GTKM)
Loco and wagon usage : (Time spent by locos in hrs and wagons in days) x (respective rates notified by RB from time to time)
Running repairs of wagons : Pro-rata basis of (Total zonal expenses of Running Repairs)x (SPV Wagon days)/(Zonal Wagon Days)
Documentation : Stationery cost
Compensation claims: claim settlement and prevention organization (K210) and other claims under K230, K240 and K260
Indirect Overhead : The costs which cannot be allocated to any known heads such as Medical, RPF, Pension etc. and paid on a percentage basis as per Yearly Summary of End Results published by Railway Board. This charge is deferred for ten years from the date of Commercial operations. i.e. 05/05/2006.
NOTE:
GTKM – Gross Tonne Kilometer [Gross Load of the Train (both Load+Empty)+Loco Weight]

27. Review of O&M Costs Particulars 2006-07 2007-08 2008-09 2009-10
Carried Tonnage (MT)
1.60
4.60
4.50
5.01
3.87
3.27
4.40
Fixed Costs (FC – `.- Cr)
9.96
13.50
15.83
25.05
25.13
23.99
26.02
FC/Tonne (`.)
62.30
29.35
35.18
50.00
64.94
73.36
59.14
FC/Tonne/Km (`.)
0.34
0.16
0.19
0.27
0.35
0.40
0.32
Variable Cost (VC – `. - Cr)
7.72
53.22
58.65
66.06
51.00
43.05
57.92
VC/Tonne (`.)
48.30
115.70
130.33
131.86
131.78
131.65
131.64
VC/Tonne/Km (`.)
0.26
0.63
0.71
0.72

28. Income and Expenditure
`. - Crores
Income:
Particulars
06-07
07-08
08-09
09-10
10-11
11-12
12-13
From Freight Operations
36.68
133.76
190.32
156.20
116.70
71.12
115.19
Others
0.11
2.61
9.80
11.46
17.20
18.87
19.70
Total
36.79
136.37
200.12
167.66
133.90
89.99
134.89
Expenses:
O&M Railway
Fixed Costs
Variable Costs
Indirect OH – FC
Indirect OH – VC
Maintenance Exp
9.13
7.69
2.18
1.96
10.89
44.46
8.76
10.97
49.89
2.63
2.23
17.53
56.33
9.73
4.89
16.61
43.49
7.52
5.64
16.50
36.62
6.33
4.85
19.47
49.38
8.54
3.92
Administration
0.32
0.61
1.02
1.27
2.32
1.78
1.76
Office
Financial Expenses
4.14
6.14
7.10
1.74
0.01
0.05
0.00
Depreciation
25.65
28.78
29.74
30.23
31.83
34.01
34.52
51.07
102.24
112.34
124.35
110.06
102.77
120.22
P B I T
(14.28)
34.13
87.79
43.31
23.84
(12.78)
14.67
Tax Paid
---
3.89
9.74
7.30
4.81
6.39
P A T
30.24
77.64
35.89
19.02
8.28
As per Books of Accounts Published after Audit

29. Earnings Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Tonnage (Million Tonne)
1.60
4.60
4.51
5.01
3.87
3.27
4.40
Gross Earnings (`. Crores)
36.71
133.54
188.19
163.63
116.63
71.35
115.21
Gross Earnings/Ton/ KM (`.)
1.25
1.58
2.27
1.78
1.64
1.19
1.43
O&M Cost (`. Crores)
17.68
66.72
74.49
91.01
76.14
67.05
83.94
O&M Cost/Ton/ Km- (`.)
0.60
0.79
0.90
0.99
1.07
1.12
1.04
Net Earnings (`. Crores)
19.03
66.82
113.70
72.62
40.49
4.30
31.27
Net Earnings/Ton/ Km (`.)
0.65
1.37
0.57
0.01
0.39
Profit/ Loss (`. Crores) (Inc. of all Expenses)
(14.28)
30.24
77.64
35.89
18.79
(12.78)
8.28
Profit/Loss/ Ton/ Km (`.)
(0.49)
0.36
0.94
0.26
(0.21)
0.10

30. Performance of the Company
` - Crores
Particulars
Total Income
36.79
136.37
200.13
167.66
133.90
89.99
134.89
Total Expenses
51.07
102.24
112.34
124.35
110.06
102.77
120.20
P B I T
(14.28)
34.13
87.79
43.31
23.84
(12.78)
14.69
P A T
30.24
77.64
35.89
19.02
8.28
E P S (Rs.)
(1.28)
2.70
6.93
3.20
2.14
(1.13)
0.74

32. Fixed Assets GAV – Gross Asset Value NAV – Net Asset Value `- Crores
Particulars
GAV
NAV
Railways
Bridges
26.91
26.53
31.03
30.19
32.94
31.58
33.45
31.54
33.86
31.41
58.56
55.26
62.66
58.39
Formation
69.99
63.41
69.47
55.70
74.22
52.78
74.79
45.58
87.29
49.07
91.14
43.60
91.08
34.11
P Way
188.70
171.09
189.51
152.51
192.23
135.54
193.04
116.44
193.50
96.92
205.42
87.75
206.98
67.98
Station & Building
9.66
8.80
10.10
9.07
10.38
9.19
10.57
9.21
10.67
9.13
12.61
10.86
10.66
Plant & Machinery
15.96
15.73
14.98
13.22
17.24
13.82
18.62
13.37
21.10
13.76
24.40
14.58
25.18
12.78
Total
311.20
285.56
315.08
260.69
327.02
242.91
330.47
216.14
346.42
200.29
392.13
212.04
398.51
183.93
Office
0.23
0.21
0.19
0.25
0.26
0.36
0.41
G Total
311.42
285.77
315.32
260.88
327.27
243.10
330.74
216.34
346.78
200.55
392.54
212.30
398.92
184.16
GAV – Gross Asset Value NAV – Net Asset Value

33. Capital Structure ` - Crores Particulars 2006-07 2007-08 2008-09
Share Capital
Paid Up
112.00
Reserve & Surplus (Cumulative)
---
15.95
93.60
129.49
148.51
134.86
143.13
Secured Loans
Canara Bank
45.00
48.90
1.08
0.00
SBH
25.00
31.12
1.10
Unsecured Loans
Sub debt from S W R
140.79
126.79
99.79
78.78
Deferred Indirect Over Heads of SWR
4.14
15.51
26.90
39.25
49.41
58.37
69.54

34. Section Staff Position in HMRDC
S.No
Department
No of Staff as per Agmt
No. of Staff on Roll
New Staff Recruited in Engg (June’12)
No of staff on Roll as per SWR
As on 1
Mechanical (SKLR-SBHR) 68 58 59 2
Electrical (TLD) 23 7 15 3
Traffic (SKLR-BNTL) 91 21
112 99
105 4
S&T (SKLR-BNTL) 51 52 5
SE/P-Way (HAS-SKLR) at HAS 47 31 78 71 6
SE/P-Way (SKLR-SBHR) at SKLR 95 32
127
124
ADEN (SKLR)
390 8
BRI (SKLR) 9
SE/Works (SKLR) at SKLR 18 14 10
SE/P-Way (KBPR) 93 46
139
140 11
Accounts
Total
655
481
109
590
591
SWR has recruited New Staff for Engg in the month of May 2012 and effective from June 2012

35. Information and Communication Technology (ICT)
The Company has implemented need based ICT.
For Accounts, Tally software is used.
For Commercial & Operational transaction, FOIS & an in house developed program (backend/data base in MYSQL and Frontend in Dot Net) “FAITH” Freight Accounting Information Tool of HMRDC is in place.
The website of the Company is a dynamic one and all relevant information are made available therein.
Regular back-up of data is done in an external Hard Drive Disk.
All the Personal Computers are connected through LAN (Local Area Network) and antivirus software loaded.

36. INSURANCE
PROJECT LENGTH COVERED : 97 Kms out of 183 Kms from (SKLR to KBPR)
ASSETS INSURED : Permanent way, Station Buildings, Signaling, and Telecom,
Mechanical & Electrical Equipments
RISKS COVERED : Force Majeure occurrence such as fire, root, flood, breaches, lightning,
earthquake and other natural disaster – mainly on account of landslides/
rockslides during monsoon.
LOSSES COVERED : i) Restoration cost of tracks and assets damaged
ii) Loss of Profit/ Revenue on account of stoppage of operation on
account of Force majeure events.
POLICY PERIOD : 13th January 2014 to 12th January 2015
PREMIUM PAID : ` Lakhs
` Lakhs
` Lakhs
` Lakhs
` Lakhs
` Lakhs
CLAIMS SETTLED : :
Restoration Cost : ` 61 Lakhs
Loss of Profit : ` 163 Lakhs (Received on )
2009 :
Restoration Cost : ` Lakhs
Loss of profit : ` Lakhs (Received on )
Company has put up the Claim for Rs Cr for the year to the National Insurance Company as their were Landslides in the months of July’12 and August’12 .

37. Income Tax Holiday and Payment of MAT
Nature of exemption : Eligibility U/s 80IA being Infrastructure facility
Quantum of Exemption : 100% of Profit/ Income of the Company
Period of Exemption : For 10 Consecutive years from the Initial year
Exemption Availed : From FY
Exemption Available : upto FY 2016 – 17
PAYMENT OF MAT :
The Company is required to Pay minimum Alternative Tax (MAT) on Book Profits u/s 115JB of Income Tax Act.
The Book Profit and MAT/Income Tax paid are :
FIN YEAR Book Profit Rate% including Surcharge ` In Crores Amt of and Education Cess MAT/Income Tax Paid
(10%+10%+3%)
(10%+10%+3%)
(15%+10%+3%)
(18%+7.5%+3%)
(12.78) (18.5%+5%+3%)
(30%+5%+3%)

38. Looking to Future SWOT Analysis : Strengths :
The Only Railway Line passing through Western Ghats
connecting the major port of Karnataka with Hinterland.
Has got Line Capacity to transport 6 Million Tonnes of Traffic
per annum.
Stabilized Rail Link.
Entire Loan of `. 90 Cr. availed from Nationalized Banks
Completely Amortized within 3 years of CoD

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

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

41. Looking to Future Threats :
Higher Expenditure on Maintenance costs for retaining walls etc to
prevent landslides.
Huge Capital Expenditure for strengthening of bridges to permit
running of 25T Axle Load Trains.
Dwindling traffic movements.
Premature replacement of Assets due to denudation.

42. THANK YOU