Corporate Information

Indian Railway Catering and Tourism Company Ltd. (hereinafter referred to as “Company) has been set up by the Ministry of Railways. It is a public limited company domiciled and was incorporated in India on September 27, 1999 with the basic purpose of hiving off entire catering and tourism activity of the railways to the new Company so as to professionalize and upgrade these services with public-private participation. Rail based Tourism in India will be the specific vehicle for achieving high growth in coordination with state agencies, tour operators, travel agents and the hospitality industry. The Company is registered under the Indian Companies Act, 1956 and the registered office of the company is located at 11th floor, B-148 Statesman House Barakhamba Road New Delhi-110001

As on 31st March, 2024, the total shareholding of Ministry of Railways, stood at 62.4%.

Note-2:

Basis of Preparation

a) Statement of Compliance

The standalone financial statements as at and for year ended March 31, 2024 have been prepared on going concern basis in accordance with Indian Accounting Standards (Ind-AS) notified under the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time.

b) Basis of Measurement

The Company is following accrual basis of accounting under historical cost convention and for the following item that have been measured at fair value as required by relevant Ind-AS.

i. Defined benefit Plan and other long term employee benefits

ii. Certain financial assets and liabilities measured at fair value (Refer policy on financial instrument).

c) Use of estimates& Judgments

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of financial statements and the reported amount of income and expenses. Examples of such estimates includes estimated useful life of property, plant and equipment, employee benefit expenses,

provisions, satisfaction of performance obligation in revenue recognition etc. actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Future results could differ due to changes in these estimates and difference between the actual result and the estimates are recognized in the period in which the results are known /materialize.

d) All financial information presented in Indian rupees and all values are rounded to the nearest lakh rupees with two decimal points except where otherwise stated.

e) Statutory dues payable and refundable are treated as current liability and current assets due to current in nature.

f) Statement of Cash Flow

Statement of Cash Flow is made by using the Indirect Method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing and investing activities of the company are segregated.

For the purposes of the statement of cash flow, cash and cash equivalents include cash in hand, cash at banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand are considered part of the Company’s cash management system.

The company has adopted the amendment to Ind-AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosures requirement.

g) Foreign Currency

i. Functional and presentation currency

The standalone financial statements are presented in Indian Rupees (INR), which is functional as well as presentation currency of the company.

ii. Transaction and balances

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary foreign currency assets and liabilities are translated or converted with reference to the rates of exchange ruling on the date of the Balance Sheet.

Foreign exchange gains and losses resulting from the settlement of such transaction and for the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised as profit or loss.

h) Property, Plant and Equipment

i. Property, Plant and Equipment are stated at cost of acquisition including installation charges and other related expenses if recognition criteria are met.

ii. Cost of replacement, major inspection, repair of significant parts is capitalized if the recognition criteria are met.

iii. In case of Computers, the cost of Operating System software procured along with Computer has been

capitalized with Computers, while regular upgrades and Annual Maintenance Charges have been treated as revenue expenditure.

iv. Expenditure on the leased buildings for Office premises has been capitalized as Leasehold -Office Development

v. The Luxury Tourist Train has been capitalized and shown as "Luxury Tourist Train" in Property, Plant and Equipment, refer policy on government grant for treatment of grant related to acquisition of these assets.

vi. Upon sale of assets, cost and accumulated depreciation are eliminated from the financial statements and the resultant gains or losses are recognized in the statement of profit and loss.

(b) Depreciation is calculated on a straight line basis from the date of ready to use. Depreciation is provided up to the date of sale, discard and loss of the assets during the year.

(c) Each part of an item of Property, Plant and Equipment related to Company owned Rail Neer plants is depreciated separately if the cost of part is significant in relation to the total cost of the item and useful life of that part is different from the useful life of remaining asset which is based on the estimates & certificate of in-house technical expert. Further, for the PPP plants for which the capital supports

are provided by the Company, the estimated life for whole Civil work and plant has been estimated as 20 years and 10 years respectively by in house technical committee. Further, the Bilaspur plant was converted to a PPP (Public-Private Partnership) from a company-operated plant in January 2023. Each item of the plant has its own codal life, and these parts need to be replaced by IRCTC after the expiry of their codal life. Therefore, the life of the plant and machinery at the Bilaspur plant should be considered as per the standards for a company-owned plant, despite its conversion to a PPP plant. Additionally, the building of the Bilaspur factory built

by the Company is assessed with a life expectancy of 30 years, starting from 30.03.2017, in accordance with the earlier practices for company-owned Rail Neer plants.

(d) Leasehold-Office developments in respect of office premises and Leasehold land (for which lease agreement exists) have been depreciated/amortized over the lease period. Expenditure incurred on civil work on premises located on Railway Land (for which no lease agreement exists) has been accounted as lease hold improvement and has been depreciated over a period of ten years. In addition to above, the life of civil infrastructure on Railway land for rail neer plants has been taken as per the life review committee report.

(e) Depreciation methods, useful lives and residual values are reviewed at each reporting date.

(f) Depreciation is calculated at depreciable amount, i.e. Cost less its residual value.

(g) In respect of Residential Flats constructed on leasehold land, depreciation is charged over the period of the lease of the land.

(h) The life as assessed by the Life review committee for different assets is as per schedule II of company act except as given below

1) Land for which, IRCTC has lease agreement/ allotment letter with Railway for long term i.e. More than 10 year :- life has been taken as per agreement (Parassala and Danapur) for creating the lease assets

2) Land for which , IRCTC has a lease agreement/ allotment letter with Railway for short term i.e. less than 10 year or no agreement signed with Railway :- Life for creating lease (ROU) has been taken 10 years from FY 2021-22 except for the land of Nangloi and Ambernath plant

(i) Nangloi Plant set up on Railway land:- Life has been taken as per actual agreement.

(ii) Ambernath plant set up on Railway land: - Life has been taken till 31.03.2026 as per the demand raised by railway for the lease for the purpose of creating ROU only due to non availability of agreement with railway as on date.

3) Buildings on self operated rail neer plant have the life as per company act i.e. 30 Years except

(i) The building built for plant on Nangloi due to uncertainty of life and its has been taken till the expiry of actual agreement with railways i.e 31.03.2024

(ii) The building built on Ambernath and Palur plant, where the Life of Building has been taken 10 years from the beginning of FY 2021-22 i.e. till 31.03.2031 due to non availability agreement.

(iii) For Building situated on Railway land for which there is a an agreement, the life of such buildings -have been taken at par with the agreement with railway.

4) Building and Plants & Machinery for PPP plants are being depreciated as per the Life assessed by the committee i.e. Civil construction for 20 years and P&M for 10 Years, except the bilaspur plant which is being depreciated as per the practice followed in company owned Rail neer plant

5) Life of Leasehold improvement and civil infrastructure situated at North Zone on Ajmeri gate side has been taken till 31.03.2024 due to renovation of station as informed by railways. Life of Assets earmarked for company owned other base kitchens i.e. leasehold improvement, P&M and other Selected office equipment has been taken till the end of FY 2024-25 i.e. till 31st March 2025

6) Office on Railway land where there is no agreement and offices are existed on 01.03.2019, the life has been taken as 10 year from the FY 2019-20 (initial reorganisation period /transition period) for creating ROU.

7) Any capital nature expenditure done on Bharat Gaurav trains - is being amortised during the lease period of trains under Bharat Gaurav scheme of Indian Railways

8) Any other expenditure on railway assets - i.e. being depreciated/amortised at par with the agreement with Railway and in the absence of any agreement, it will be 10 years.

are permanently withdrawn from use and no future economic benefit is expected from their disposal. Difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of de-recognition.

n) Operating cycle for Current and Non Current Assets

Company has classified the assets and liabilities as current which is expected to realise within the twelve months after the reporting period and all other assets and liabilities are classified as noncurrent.

j) Capital Work in Progress/Capital Advances: -

Capital work in progress includes the cost of property, plant and equipment (PPE) that are not yet ready for their intended use and the cost of assets not put to use before the balance Sheet date. Advances paid to acquire PPE are shown as “Capital Advances” under other “Non Current Assets”

k) Intangible Assets: -

Intangible assets like software, licenses, web portal, tourism portal etc. are recorded at the consideration paid for acquisition and useful life of Intangible Assets has been assumed as 4 Years.

l) Investments in Joint Arrangements and Subsidiary

Investment in equity instruments of joint ventures and subsidiary are measured at cost as per Ind AS 27-Separate Financial Statements.

m) Investment Properties

a) Investment Properties are stated at cost, net of

accumulated depreciation and accumulated

impairment losses, if any.

b) The company depreciates building component

of investment property over the estimated useful life of the assets as prescribed in property, plant and equipment.

c) Investment properties are derecognized either

when they have been disposed off or when they