17. Provisions, Contingent Liabilities & Contingent Assets:
a. Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from
a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.
b. Onerous contracts
Onerous Contracts: A contract is considered as onerous when the expected economic benefits to be derived
by the Group from the contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before a provision is established, the
Group recognises any impairment loss on the assets associated with that contract.
c. Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain
future events not wholly within the control of the Group or a present obligation that arises from past events
where it is either not probable that an outflow of resources will be required to settle or a reliable estimate
of the amount cannot be made.
d. Contingent Assets
Contingent assets are not recognized in the Financial Statements. However they are disclosed when the
possible right to receive exists.
18. Earnings per share (EPS)
Basic earnings per share (‘EPS’) is computed by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares
outstanding during the period except where the result would be anti-dilutive.
19. Cash and Cash Equivalent
In the consolidated cash flow statement cash and cash equivalents include cash in hand, demand deposits with
banks, other short term highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
20. Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to control the use
of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii)
the Company has substantially all the economic benefits from use of the asset through the period of the lease
and (iii) the Company has the right to direct the use of the asset.
The Company accounts for each lease component within the contract as a lease separately from non-lease
components of the contract and allocates the consideration in the contract to each lease component on the basis
of the relative stand -alone price of the lease component and the aggregate standalone price of the non-lease
components.
The Company as a Lessee
At the date of the commencement of the lease, the Company recognizes a right-of-use assets (‘ROU’) and a
corresponding lease liability for all the lease arrangements in which it is a lessee, except for leases with a term
of twelve months or less (short term leases) and low value leases, the Company recognizes the lease payments
as an expense on a straight-line basis over the term of the lease.
In determining the lease term, Company considers the Option to extend/terminate the lease, wherever it is
reasonably certain to exercise such option.
Lease liability is initially measured at the present value of future Lease payments due to the lessor over the lease
term, with the discount rate determined by reference to the rate implicit in the lease and in case it is not
determinable, Company's incremental borrowing rate on commencement of the lease is used. For leases with
reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental
borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.
The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise
price of a purchase option where the Company is reasonably certain to exercise that option and payments of
penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.
The Company only include variable lease payments in measurement of the lease liability if they depend on index
or rate. Other variable lease payments are charged to statement of profit & loss. The lease liability is
subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments made.
The Company recognizes the amount of the re-measurement of lease liability due to reassessment/ modification
as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of
reassessment/modification. However, lease modification is accounted as separate lease if the modification
increases the scope of the lease by adding the right to use one or more underlying assets and the consideration
for lease increases by an amount commensurate with stand-alone price for the increase in the scope.
The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement
of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located.
They are subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any
and adjusted for any re- measurement of the lease liability.
Right-of-use assets are depreciated on a straight-line basis over the lease term or remaining useful life of the
underlying assets as prescribed in IND AS 16 (PPE)/Schedule II of Companies Act 2013, whichever is shorter.
The Company as a Lessor
Leases for which the Company is a lessor is classified as finance or operating lease. Whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as
finance lease. All other leases are classified as operating leases.
For operating leases, the rental income/lease payments received are recognized on straight-line basis over the
lease term.
For finance leases, finance income is recognized over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor’s net investment in the lease. When the Company is an intermediate lessor
it accounts for its interests in the head lease and the sub-lease separately. The Company assesses the lease
classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference
to the underlying asset. However, if a head lease is a short term lease, wherein the Company has accounted lease
payments on straight line basis, then it classifies the sub-lease as an operating lease.
21. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual
provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised
immediately in profit or loss.
Fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets
held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments.
Valuation techniques include discounted cash flow method and other valuation models.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition
of the financial asset is also adjusted.
Subsequent measurement
i. Debt instrument/Tax free bonds at amortised cost - A debt instrument at the amortised cost if both the
following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method.
ii. Equity instruments - All equity instruments in scope of Ind-AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at fair value through profit and loss (FVTPL). For
all other equity instruments, the Group decides to classify the same either as at fair value through other
comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
iii. Mutual Funds - All mutual funds in scope of Ind-AS 109 are measured at amortised cost and the (FVTPL)
since they could be readily available for sales with significant change in value of the cash inflows.
De-recognition of financial assets
A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or
the Group has transferred its rights to receive cash flows from the asset.
Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the
acquisition of the financial liabilities is also adjusted. These liabilities are classified at amortised cost.
Subsequent measurement
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest
method. This category generally applies to long-term payables and deposits.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is
a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the
terms of a debt instrument.
Financial guarantee contracts issued by a Group entity are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at the higher of:
• the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
• the amount initially recognised less, when appropriate, the cumulative amount of income recognised in
accordance with the principles of Ind AS 18.
22. Impairment of financial asset
In accordance with Ind-AS 109, the Group applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract
and all the cash flows that the Group expects to receive. When estimating the cash flows, the Group is required
to consider -
• All contractual terms of the financial assets (including prepayment and extension) over the expected life of
the assets.
• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.
Trade receivable
As a practical expedient the Group has adopted ‘simplified approach’ using the provision matrix method for
recognition of expected loss on trade receivables. The provision matrix is based on historical default rate
observed over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every
reporting date, the historical default rates are updated and changes in the forward-looking estimates are analysed.
Further receivables are segmented for this analysis where the credit risk characteristics of the receivables are
similar.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Group determines whether
there has been a significant increase in the credit risk since initial recognition and if credit risk has increased
significantly, impairment loss is provided.
23. Registration Fee: Registration fee paid to Ministry of Railways (MOR) for movement of container trains on
Indian Railways Network and running of Private Freight Terminals (PFT) is shown as Prepaid Expenditure
under 'Current Assets' and 'Non Current Assets'. The registration fee is amortized over the period covered by the
respective agreements with Indian Railways.
24. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added
to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
25. Segment reporting
The Group’s segmental reporting is in accordance with Ind AS 108 Operating Segments. Operating segments
are reported in a manner consistent with the internal reporting provided to the board of directors, which is
responsible for allocating resources and assessing performance of the operating segments, and has been
identified as the chief operating decision maker.
26. Significant management judgement in applying accounting policies and estimation uncertainty
Significant management judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.
The following are significant management judgements in applying the accounting policies of the Group that
have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognised is based on an
assessment of the probability of the Group’s future taxable income against which the deferred tax assets can be
utilized.
Estimation certainty
Information about estimates and assumptions that have the most significant effect on recognition and
measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially
different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying
assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation
amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgement, changes in facts and legal aspects, the
Group assesses the requirement of provisions against the outstanding warranties and guarantees. However the
actual future outcome may be deferent from this judgement.
Recoverability of deferred tax assets: The extent to which deferred tax assets can be recognized is based on an
assessment of the probability of the Company’s future taxable income against which the deferred tax assets can
be utilized.
Useful life of Property plant and Equipment and Intangible assets: As described at 3 and 4 above, the Group
reviews the estimated useful lives of property, plant and equipment and Intangible assets at the end of each
reporting period. The estimate of useful life may be different on account of change in business environment and
change in technology which could have a material impact on the financial statement.
27. Grants:
Grants are recognized when there is a reasonable assurance that the company has complied with the conditions
attached to them and it is reasonably certain that the ultimate realization and utilization will be made. Grants
which are receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the company, with no future related costs are recognized in the statement of profit
& loss of the period in which they have accrued.
Grants related to depreciable assets including non-monetary grants (at fair value), are presented in the balance
sheet as “Deferred Income” of the period, in which they become receivable. Such grants are usually recognized
in the statement of profit & Loss over the periods in the proportions, in which depreciation expense on those
assets is recognized.
The grants under ‘Served from India Scheme (SFIS)’ are recognized at the time of utilization of SFIS Scrip
towards procurement of assets and inventories. Such assets/inventories have been capitalized with a gross value
from transaction date based on deemed cost exemption availed by the Company.
The grants under ‘Service Export from India Scheme (SEIS)’ are recognized when the conditions attached with
the grant have been satisfied and there is reasonable assurance that the grants will be received. These are
recognized in the period in which the right to receive the same is established i.e. the year during which the
services eligible for grant of SEIS have been performed.
22.1 Summary of borrowing arrangements
The subsidiary in the Group (Punjab Logistics Infrastructure Limited) has taken term loan from HDFC Bank of ? 70 crore on march 10,2016 at the rate of interest of 9.70%
per annum for part project funding for Multi-Modal Logistics Park (MMLP) being set up near Mandi, Ahmadgarh Station, Ludhiana, Punjab (" the Project"). The term loan
has been fully repaid in Current Financial Year. Rate of interest at the end of reporting date is 9.55% p.a.
This loan was secured against first charge by way of equitable mortgage on all the present and future fixed assets of the project of as well as hypothecation of all current and
movable fixed assets of the project. Further the term loan is backed up by letter of comfort given by the CONCOR and the other company having significant influence,
CONWARE up to their shareholding respectively in company.
The entire loan was repayable in 44 equal quarterly instalments over a period of 11 years with a moratorium period of 4 years and first instalment was paid on June 10th, 2020.
The subsidiary in the Group (Punjab Logistics Infrastructure Limited) has paid ? 67.99 Crores till 31.03.2024. Pending ? 2.01 Crores paid in the FY 2024-25.
22.2 Summary of 5% Redeemable Cumulative Preference Shares-Unsecured
During FY 2020-2021, the subsidiary company M/s Punjab logistics Infrastructure Limited has issued 5% cumulative redeemable preference shares (Non participating; Non
convertible) of 1,00,00,000 each having a face value of ? 10/- each for general corporate purpose, working capital requirements and prepayment/repayment of debt And During
FY 2023-2024, the subsidiary company M/s Punjab logistics Infrastructure Limited has issued has issued 5% cumulative redeemable preference shares (Non participating;
Non convertible) of 4,00,00,000 each having a face value of ? 10/- each for general corporate purpose, working capital requirements and prepayment/repayment of debt.
The said preference share has been issued to existing shareholders CONCOR & CONWARE in the proportion of 51:49 for the tenure of 10 Years from the date of allotment.
Redemption Amount: Face Value of ? 10 per share plus any dividend accrued but not paid on any previous year, dividend payment as well as dividend accrued upto the
redemption date.
The Cumulative redeemable preference shares shall be redeemed out of profits of the company which would otherwise be available for dividend. (Include share issue expenses
(FY 2020-2021: ? 37,50,000).
Financial Liabilities are measured at amortised cost using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into account any discount or premium or fee or costs that are integral part of EIR. The EIR amortization is included in finance costs in
statement of Profit and loss. Financial liability shown to the extent of preference share held by CONWARE having significant influence on subsidiary M/s Punjab logistics
Infrastructure Limited.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the
end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Gratuity
The estimated term of the benefit obligations in case of gratuity is 8.71 years (As at march 31, 2024: 8.92 years)
The Group expects to contribute ? 7.73 crore to its gratuity plan in the next financial year
Leave Encashment
The estimated term of the benefit obligations in case of leave encashment is 8.71 years (As at March 31, 2024: 8.92 years)
Leave Travel Concession
The estimated term of the benefit obligations in case of leave travel concession is NA (As at March 31, 2024: NA)
There has been no change in the process used by the Group to manage its risks from prior periods.
42.1 Services from which reportable segments derive their revenues
The Segment reporting disclosed by the Group in this section is presented in accordance with the disclosures requirements of Ind AS 108 "Operating Segment".
Information reported to the chief operating decision maker(CODM) for the purposes of resource allocation and assessment of segment performance focuses on the
divisions operated in the Group and in respect of two major operating divisions- EXIM and Domestic, which are organized on All India basis. The information is
further analysed based on the different classes of customers. Both EXIM and Domestic divisions of the companies in the Group are engaged in handling, transportation
and warehousing activities. No operating segments have been aggregated in arriving at the reportable segments of the Group.
As at March 31, 2025, the operating segment of the Group are as under:
The companies in the group are organised into two major operating divisions- EXIM and Domestic. The divisions are the basis on which the Company reports its
primary segment information for the Group. Segment revenue and expenses directly attributable to EXIM and Domestic segments are allocated to the two segments.
Joint revenue and expenses have been allocated on a reasonable basis. Segment assets include all operating assets used by a segment and consist principally of
inventories, sundry debtors, cash and bank balances, loans, advances, other current assets and fixed assets net of provisions. Similarly, segment liabilities include all
operating liabilities and consist principally of sundry creditors, advance/deposits from customers, other liabilities and provisions. Segment assets and liabilities do not,
however, include provisions for taxes. Joint assets and liabilities have been allocated to segments on a reasonable basis.
The operations of the Group are presently confined to the geographical territories of India. Therefore, there are no reportable geographical segments.
As a lessee
The Company has entered into Operating leases arrangements for Land, Vehicles, Containers, Plant & Machinery, Railway Wagons/Rakes, Office Premises,
Accommodation Provided to Staffs etc. with different lease terms.
The Company has accounted lease payment associates with short term leases (having lease term of 12 months or less) and leases of low value assets (less than ? 3.5 lakhs)
as an expense on either a straight-line basis over the lease term or another systematic basis.
The Company has entered into agreement(s) with Indian Railways, for utilization of its land leased to CONCOR for setting up of Company’s Terminals and carrying out
Company’s operations at such terminals.
In FY 2020-21, Ministry of Railways, Government of India vide its order no.2015/LML-II/13/4 dated 19.03.2020, had communicated that the Land License Fee (LLF)
applicable on the Railway land leased to CONCOR shall be charged w.e.f. 01.04.2020 as per extant policy of Railways i.e. @6% of the value of land, which will be
further increased 7% annually. Subsequently, superseding all previous policies/ guidelines, Railways has issued a Master Circular (MC) on Policy for Management of
Railway Land on 4th October 2022. In the MC, it has been reiterated that annual LLF on the existing land will be payable @6% of Market Value (MV) of land with
annual escalation of 7%. The MV will be the industrial rate specified in the State and when it is not specified in the State, then any other rate depending upon use of
surrounding land as specified by the State/ Revenue Office, shall be considered.
On the basis of above MC of Railways, LLF for the FY 2024-25 has been booked on the MV of Railways’ land parcels obtained by CONCOR. In some cases, where
there is inconsistency in the assessment of land area and MV of land between the Company and the Railways, the same is being reconciled with the concerned divisional
Railways. Further, in terms of the MC the new Agreement(s) with the Railways for the land parcels leased to CONCOR will be executed as and when the same are
finalized by Railways.
In view of above, the quantification of company’s potential exposure for land licensed by Indian Railways in future is not ascertainable. Therefore, the Company has not
recognized Right of Use (ROU) Asset and Lease Liability for lands licensed by Indian Railways
(1) Capital management
The Group's risk management committee reviews the capital structure on an annual basis or frequently as and
when need arises. As part of this review, the committee considers the cost of capital and the risks associated
with each class of capital. Based on this, the Group determines the amount of capital required for annual and
long-term operating plans. The funding requirements are met through equity and borrowings. The Group
monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt
portfolio of the Group.
The capital structure of the Group consists of net debt (borrowings as detailed in note. 22 are offset by cash and
bank balances) and total equity of the Group.
The gearing ratio enables investors to see how significant net debt is relative to equity from shareholders. After
the infusion of debt during 2015-16, the subsidiary in the Group is subject to externally imposed capital
requirements against the term loan borrowed from HDFC Bank from the third year of its operations. As per the
financial covenants exposed by bank, the subsidiary in the Group has to maintain tangible net worth below 2
and total debt service coverage ratio (DSCR) should be greater than 1.25.
(iv) Market Risk
The Group’s activities is exposed primarily to the financial risks of changes in foreign currency exchange rates.
Market risk exposures are measured using sensitivity analysis.
There has been no change to the Group's exposure to market risks or the manner in which these risks are being
managed and measured.
(v) Foreign Currency risk management
The company is not subject to significant transactions denominated in foreign currencies. The company does
not have earnings in foreign currency but the foreign currency outgo made during the year is ?0.89 crore (2023¬
24: ? 0.63 crore) against which the net gain/(loss) on foreign currency transactions recorded in the books is
insignificant. Consequently, exposures to exchange rate fluctuations are limited.
(vi) Interest rate risk management
The Group is exposed to interest rate risk because the Group has borrowed the funds at floating interest rate in
the Financial year 2015-16. The current effective interest rate used by the Group is bank's base rate as per bank
advice to record interest expense till the moratorium period of 4 years. However after moratorium period, the
bank will charge at its bank base rate and spread which shall be reset on yearly basis from the date of first draw
down.
As the term loan has been fully repaid, therefore company is no longer exposed to the change in bank base rate.
(vii) Other price Risks
The company is not exposed to price risk as its investments in debt based marketable securities are held in a
business model to collect contractual amounts at maturity and are carried at amortised costs. Thus the change in
fair value of these investments does not impact the Company.
(viii) Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has limited exposure to credit risk owing to the balance of trade receivables
as explained in Note no. 12. Company's bank balances and investments in marketable securities are held with a
reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
(ix) Liquidity Risk Management
The Group manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and
actual cash flows and by matching the maturity profiles of financial assets and liabilities.
is not considered where legal cases are pending, as the claim itself is not certain. No provision has been made
for the contingent liabilities stated above, as on the basis of information available, careful evaluation of facts
and past experience of legal aspects of the matters involved, it is not probable that an outflow of future economic
benefits will take place.
d) . A demand of ? 158.84 was crore received from SDMC towards property tax of ICD/Tughlakabad whereas as
per the opinion of Advocate no provision of property tax was being made in the books earlier and no demand
were ever received in this regard. Out of ^158.84 crore an amount of ? 23.06 crore (2023-24: ?3.55 crore, 2022¬
23: ?7.25 crore, 2020-21: ^10.76 crore & 2019-20: ?1.50 crore) has been deposited with SDMC towards service
charge as applicable on other PSU i.e M/s DMRC. Stay order has been granted by Hon’ble Delhi High Court &
Final Order is awaited. ? 135.78 crore has been included in the contingent liability.
e) . In respect of AY 2008-09, department has filed a Miscellaneous application in ITAT for disallowance of 80 I
A- Rail System (Rolling Stock). The same matter has already been allowed in favor of CONCOR by Apex
Court in case of AY 2003-04 to AY 2005-06. The case in respect of AY 2008-09 is pending for decision in
ITAT.
In respect of AY 2020-21, Department has raised demand for disallowance on account of Claim u/s 80G (?0.22
Crore) and Contribution to Providend Fund/ Superannuation Fund (?1.76 Crore). CONCOR has filed appeals
with CIT (A) for these disallowances and the same are pending.
HEI. The matter was referred to an Arbitration Tribunal comprising three members, which has given majority
award amounting to ? 39.58 Crores and interest @ 15% from date 22.05.2005 to 13.11.2013 amounting to ? 50.37
crore, totalling to ? 89.95 Crore 18% interest p.a. from the date of award to the date of payment in favour of
M/s Hindustan Engineering Industries on 13.11.2013. Minority award by Co-Arbitrator has been given amounting
to ? 14.61 crore in favour of the company. The majority award given in favour of HEI has been challenged by
the company under section 34 of Arbitration and Concilliation Act, 1996in the High Court of Delhi at New Delhi
on dated 07.03.2014. Last hearing in this case was held on 06.05.2025 & next Hearing is schedule for 16.07.2025.
h) . The Company has executed "Custodian cum Carrier Bonds" of ^25,804.79 crore (Previous year: ^25,139.69
crore) in favour of Customs Department under the Customs Act, 1962. These bonds are of continuing nature, for
which claims may be lodged by the Custom Authorities. Claims lodged during the year Nil (previous year: NIL).
i) . No further provision is considered necessary in respect of these matters as the company expects favourable
outcome. It is not possible for the company to estimate the timing of further cash outflows, if any, in respect of
these matters.
(i) Carrots were stored by M/s GAPL in FHEL’s facility. M/s GAPL disputed the rental and requested for
arbitration. FHEL approached arbitrator to recover rental charge and handling charge of ?0.87 crore and
M/s GAPL approached Arbitrator for claim of ?4.59 crore on quality issues. Arbitrator awarded ?0.87
crore in favour of FHEL and ?0.80 crore in favour of M/s GAPL. Both approached Hon’ble High Court
and filed appeal against the Arbitrator award. The case is pending in High Court, Delhi.
(ii) A Claim of ? 0.53 crore against FHEL has been filed by the Growers of Shimla area which is under
arbitration proceeding. A counter claim of ?1.69 crore has also been filed by the Company.
(iii) M/s Pulkit Industries have invoked arbitration clause for 2 tenders. The claim amount is ? 0.19 crore plus
interest. The arbitrator has awarded in favour of M/s Pulkit Industries which has been challenged by the
FHEL before Patiala House Court. The Hon’ble court has set aside the arbitration award dated 08.12.2018
& also has dismissed the execution petition vide its order dated 12.03.2025.
(iv) M/s J. Papyrus Packaging Pvt. Ltd. has filed an execution petition as per the arbitration award of ?0.09
crore. As per the directions of the court an amount of ? 0.04 crore has been deposited with the Court
Additional District Judge- District Court-Sonepat. FHEL has challenged the award and also the execution
petition at Sonepat court.
(v) HSIIDC vide its letter dated 26.09.2018 has communicated that they have revised the monthly lease
rental from ? 1.50 per sq. mtr per month to ? 15/- per Sq.mtr per month with annual increase of 10%
every year w.e.f. 26.03.2018. However, HSIIDC has been requested to maintain the rental rate @? 1.50
per sq. mtr per month till FHEL starts earning profit. Thus, in case of any revision of rental rate to ? 15/-
per sq mtr per month with annual increase of 10% every year w.e.f. 26.03.2018, there may arrive liability
of ? 11.36 crore.
(vi) Mr. Surjeet Singh Rana prop. M/s Madadh Poultry Farm have file a recovery suit against FHEL Claiming
an amount of ?0.19 crore plus interest @18%which has been challenged by FHEL and the matter is
pending with District Court, Sonipat.
vii) Madadh Poultry farm C/o Sushil Jindal have file a recovery suit against FHEL Claiming an amount of ?
0.18 crore plus interest @ 18% which has been challenged by FHEL and the matter is pending with
District Court, Sonipat.
viii) M/s SRF International & M/s SFA Enterprises had filed a recover suit against FHEL claiming an amount
of ? 2.50 crore plus interest @ 24%, which has been challenged by FHEL and the matter is pending with
High Court, New Delhi.
(a) During the year, the company realized ? 13.26 crore (previous year ? 10.00 crore) (net of auction expenses) from
auction of unclaimed containers. Out of the amount realized, ? 4.19 crore (previous year ? 2.67 crore) is
paid/payable as custom duty, ? 8.77 crore (previous year ? 6.70 crore) has been recognised as income and the
balance of ? 0.30 crore (previous year ? 0.63 crore) has been shown under Current Liabilities.
(b) Current liabilities include ? Nil crore (As at March 31 2024 ? Nil crore) towards unutilized capital grant received
for acquisition of specific fixed assets in CONCOR/business arrangements. ? Nil crore has been recognised in
the Statement of Profit and Loss for the year ended March 31, 2025 (previous year: ? Nil crore).
(c) Current liabilities include ? 1.82 crore (As at March 31 2024 ? 1.82 crore) towards unutilized revenue grant
received from National Horticulture Board for offsetting the freight for the Horticulture Projects.
(d) Out of the capital grant of ? 46.28 crore (previous year: ? 51.39 crore), an amount of ? 4.60 crore (previous year:
? 5.11 crore) has been recognised in the Statement of Profit and Loss and the balance of ? 41.68 crore (previous
year: ? 46.28 crore) is shown under other current liabilities.
57.India Gateway Terminal (P) Ltd. (IGTPL) is a joint venture of CONCOR with Hindustan Ports Pvt. Ltd & others
for setting up and managing of container terminal at Cochin. Though CONCOR’s share in the accumulated losses
(as per unaudited financial statements for FY 2024-25) of this JV are as at ? 39.98 crores & does not exceeds its
investment of ? 54.60 crores as on 31st March 2025, no provision for diminution in the value of investment has been
made, as with the management’s consistent review and implementation of appropriate business strategy, the company
has already made a turnaround. The same is clearly established from the unaudited financial statements of IGTPL for
FY 2024-25.
Management has also tested this investment for impairment in accordance with the conditions laid own under IND
AS-36 “Impairment of Assets”. As per the impairment testing carried out by the management, it has been established
that the Value in Use i.e., the present value of future expected cash flows that will accrue from the
improving/enhancing of its asset’s performance exceed the carrying value of investment. IND AS-36 states that
impairment needs to be provided if and only if the carrying value of investments exceeds its value in use or fair value.
58. In FY 2020-21, Ministry of Railways, Government of India vide its order no.2015/LML-II/13/4 dated 19.03.2020,
had communicated that the LLF applicable on the Railway land leased to CONCOR shall now be charged w.e.f.
01.04.2020 as per extant policy of Railways i.e. @6% of the value of land, which will be further increased 7%
annually. Accordingly, as per the company assessment, an amount of ? 373.96 crore (2023-24: ? 373.20 crore) has
been booked, net off past provisions of ? 65.54 crore (2023-24: ? 68.20 crore) as Land License fee payable to Indian
Railways in current financial year as per extant policy of Railways.
60. There are no Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act,
2013), either severally or jointly with any other person, that are:(a) repayable on demand; or (b) without specifying any terms or period of repayment.
61. Details of Crypto Currency or Virtual Currency:- The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.
62. Details of Benami Property held:- The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988. and no
proceedings have been initiated or pending against the company under the said Act.
63. The Company does not have any borrowings outstanding as on 31.03.2025 and has not borrowed any funds from banks or financial institutions on the basis
of security of current assets during Financial Year 2024-25. Considering the same, the company has not been declared as wilful defaulter by any bank or
financial Institution or other lender and no charges or satisfaction are yet to be registered with ROC beyond the statutory period.
64. Relationship with Struck off Companies: "The Company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.
65. The company has complied with provision related to the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017
66. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
67. The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
68. The Company does not have any transaction 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 Tax Act, 1961. Further, there were no previously unrecorded income and related assets which were required to be properly
recorded in the books of account during the year.
72. In respect of JV Gateway Terminals India Private Limited, Company share is 26%. As reported previously, The
Company's revenue is determined by the Tariff Authority for Major Parts (TAMP) based on applicable tariff
guidelines, from time to time. TAMP notified a reduction of tariff by 44.28% as compared to the existing rates (which
were prevailing effective from April 1, 2010 {‘2010 Tariff}) vide its order dated July 2, 2012 w.e.f. February 12,
2012 (‘2012 Tariff), as per 2005 Guidelines.
The said order and the 2005 Guidelines were challenged by the Company vide Writ Petition at the Hon’ble Bombay
High Court, the Hon’ble Court was pleased to grant an ad-interim order dated July 2, 2012 which stated: “Pending
further orders the petitioners shall be permitted to charge and collect the tariff at the rates prevailing prior to impugned
order dated January 19, 2012. However the petitioners shall keep the account of every such transaction and in the
event of the petitioners not succeeding in the writ petition, collection of any amounts by the petitioners over and
above the tariff prescribed by the impugned order, shall be subject to the further orders of this court.” The difference
in rates between the 2012 Tariff and 2011 Tariff is known as Tariff Differential. A separate Writ Petition challenging
the 2005 Tariff Guidelines has also been filed by the Indian Private Ports & Terminals Association at Delhi high
court, which is being heard.
The Company has been legally advised on the matter on the merits of the case and also the Company's right to use
the Tariff Differential collected for the operations of the Company. Based on legal advice obtained, the Company
had recognized revenue at gross level in the books and utilized the Tariff Differential collected on the invoice raised,
for the day to day operation of the Company. The Company also paid revenue share to Jawaharlal Nehru Port Trust
(now known as Jawaharlal Nehru Port Authority) on the Tariff Differential collected based on the MOU entered
between both the parties.
Income from Port Services for the year includes revenues of ? Nil crore (previous year: ? Nil crore) pertaining to
differential tariff. Appropriation of income to JNPT for the year includes ? Nil crore (previous year ? Nil crore)
pertaining to differential tariff. As at March 31, 2025, the Company has accounted revenue of ^2457.26 crore
(Previous year: ^2,457.26 crore) pertaining to differential tariff and has appropriated income to JNPT of ^872.40
crore (as at March 31, 2024: ? 872.40 crore) on the above differential tariff for the period February 23, 2012 to April
01, 2020.
73. Approval of financial statements
The financial statements were approved for issue by the Board of Directors in its meeting held on 22nd May,
2025.
In terms of our report attached
For HEM SANDEEP & CO. For and on behalf of the Board of Directors
Chartered Accountants
FRN-009907N
(Sanjay Swarup) (Harish Chandra)
Priyank Varshney Chairman & Managing (Anurag Kapil) Principal Executive Director
Partner Director Director (Finance) (Finance & Company Secretary
Membership no:421308 (DIN:05159435) (DIN:06640383) and CFO)
UDIN:25421308BMNXKZ3754
Place: New Delhi
Date: 22nd May, 2025
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