Summary of material accounting policies
The standalone financial statements have been prepared
using the material accounting policies and measurement basis
summarized below. These were used throughout all periods
presented in the financial statements.
a) 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.
b) 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.
c) 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.
) Depreciation & Amortization: -
(a) Depreciation is provided in accordance with the life
specified under Schedule II of the Companies Act,
2013 except for certain items. The Life of certain
assets which has not been taken as per schedule II
of the Companies Act, 2013 is as follows:-
(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.
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 ”For the plants that have been
converted from self-operated to PPP mode or vice
versa, the useful life has been adopted based on the
recommendations of the Life Review Committee.
(c) 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.
(d) Depreciation methods, useful lives and residual
values are reviewed at each reporting date.
(e) Depreciation is calculated at depreciable amount,
i.e. Cost less its residual value.
(f) In respect of Residential Flats constructed on
leasehold land, depreciation is charged over the
period of the lease of the land. ”The investment
in budget hotels is being depreciated based
on the useful life as recommended by the Life
Review Committee.”
(g) 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 at Nangloi
due to uncertainty of life and its has been
taken till the expiry of actual agreement
with railways i.e 31.03.2024 as per the
committee recommendation.
(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 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.
9) The useful life of assets related to Base
Kitchens, including civil structures, has been
adopted as per the recommendations of the
Life Review Committee
The estimated useful life of assets for current and
comparative period of significant items of property plant
and equipment which has been taken as per schedule II
of Companies Act, 2013 are as follow:
g) 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.
h) 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
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.
i) 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.
e) 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”
f) 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.
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