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IRCTC - Indian Railway Catering & Tourism Corp Ltd.

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Annual Report

For Year :
2011

Director’s Report

The Directors have the pleasure in presenting the Twelfth Annual Report and Audited Statement of Accounts of the Corporation for the financial year ended on 31st March 2011, together with the Auditors'' Report and comments on the Accounts by the Comptroller and Auditor General of India (CAG). 1. FINANCIAL PERFORMANCE During the year 2010-11, the Corporation achieved a total income of Rs 764.93 Crore, a new record, as compared to Rs 721.97 Crore in 2009-10 thereby registering a growth of approx. 6 %. Keeping in view the change in Licencee Catering Policy and reduction in service charges for internet bookings, the growth can be viewed with satisfaction. Profit before tax of Rs 129.79 Crore (a new record) was achieved during the year 2010-2011 as compared to Rs 94.76 Crore in the previous year, thereby registering a growth of about 37%. This was achieved with several cost cutting measures, across the Corporation and particularly in the area of Departmental Catering where losses have been brought down to Rs 55 crore as compared to Rs 75 crore in the previous year. However, net profit has marginally come down from Rs 63.05 Crore in 2009-10 to Rs 60.79 Crore in 2010-2011due to higher Income tax provision. An amount of Rs 9.12 Crore has been provided towards Haulage Charges up to 20.7.2010 till the announcement of new Catering Policy 2010. The Net Worth of the Corporation has crossed Rs 200 Crore mark and is Rs 211.41 Crore as on 31.3.2011 as compared to Rs 162.76 Crore as on 31.3.2010. Profit earned by the Corporation has been appropriated in the following manner: (Rs in Crore) Particulars/Year ending 31st March, 2011 31st March, 2010 Profit Before Tax 129.79 94.76 Provision For Tax 68.06 34.52 Deferred Tax - (2.81) Profit after Tax 60.79 63.05 Profit brought forward 12.84 9.54 Transfer to Reserves 45.00 45.00 Dividend(including Dividend Tax) 14.13 14.75 Profit carried forward to Balance Sheet 14.50 12.84 2. CONTRIBUTION TO REVENUES OF RAILWAYS: During the year, the Corporation contributed a sum of Rs 55.59 crore to the revenues of Indian Railways as against a sum of Rs 82.28 Crore during the previous year. Contribution to the Revenues of Railways comprises Haulage Charges, Concession fee, License fee, User Charges and Dividend. In addition to the above, tickets worth Rs 8007 Crore were booked during the year as against Rs 6011 Crore during the previous year. 3. DIVIDEND A dividend of Rs 12.16 Crore (20 % of the Net Profit) excluding dividend tax is recommended for the year 2010-11, as against Rs 12.61 crore (20% of net profit) paid in the previous year. 4. CAPITAL STRUCTURE As on 31st March, 2011, paid-up share capital of the Corporation stood at Rs20 Crore. The Government of India holds the entire paid up share capital of the Corporation. During the year, there was no change in the paid-up share capital. 5. BUSINESS PERFORMANCE Main Business Segments/Activities of the Corporation are as under: I - Catering & Hospitality II- Internet Ticketing III- Travel & Tourism IV- Packaged Drinking Water (Rail Neer). I - CATERING & HOSPITALITY The Catering business of the Corporation has grown many folds over the years due to overall improvement in the existing Catering services. Most of the Catering Units were ISO certified. New Catering Policy 2010 was issued on 21.7.2010 by the Ministry of Railways. The Policy stipulated transfer of Licensee Catering & Departmental Catering services to Railways except Food Plazas, Fast Food Units and Food Courts. While as on 31st March, 2011, most of Licensee Catering Units have been transferred to Railways, most of the Departmental catering is continuing with IRCTC till taken over by Railways. (i) Mobile Catering During the year, the Mobile Catering activities of the Corporation has come down from 285 trains at the end of31.03.2010 to 33 trains as on 31.03.2011, which are all departmental trains. IRCTC is providing catering in all newly introduced Duronto Trains. This is a challenging task since compulsory catering has been introduced in Sleeper Class for the first time on Indian Railways, as also due to infrastructural constraints on these trains. (ii) Static Catering In respect of Static Catering, the licensee Catering units have reduced from about 7000 units at the end of 31.03.2010 to about 250 units as on 31.03.2011, which are also in the process of being transferred to Railways. As regards Departmental Units, all such units (approx 670) continue with IRCTC, to be transferred later in phases. (iii) Bookstalls Presently IRCTC is managing 1271 Book Stall Units at various railway stations on Indian Railways. Upgradation of Book Stalls and new allotments could not be undertaken since there is a stay granted by Hon''ble Supreme Court of India and Ministry of Railways has advised to maintain status quo in this regard. (iv) Institutional Catering & Ministry Cafeteria Besides railway catering, IRCTC has made a name for itself in various Institutions and Ministries by providing cafeteria facilities at their places on a reasonable & rational price structures. The Corporation has opened 2 such facilities, taking the total to 8, till March''11 end. Another 14 units have also been opened till August 2011. These Catering Units are fully air conditioned and have an enamoring ambience. The vegetarian and non vegetarian food which includes North Indian, South Indian, Chinese, Continental, Chaats, Snacks and Beverages are provided at reasonable prices and are widely appreciated. The food being served is of Highest Quality and adhere to ISO/HACCP standards. (v) Budget Hotels IRCTC is successfully running Four Hotels/Rail Yatri Niwas on PPP basis such as the Rail Yatri Niwas at New Delhi & Howrah and BNR Hotels in Ranchi and Puri (Rail Heritage Hotels). IRCTC has floated Expression of Interest setting up Budget Hotel at Bhubaneshwar, where State Government has allotted land to IRCTC. QUALITY CONTROL SYSTEMS IRCTC stringently adheres to HACCP/ISO 22000 and quality standards with the best in- house laboratory and R&D Center. (i) Monitoring for HACCP compliance Apart from senior officers having professional experience of providing catering services, the Quality Control Professionals have been deployed from all zonal offices and temporarily deployed at the various food production points to assure HACCP compliance. (ii) Monitoring System -Customer Satisfaction Survey The quality of Food & Service can be gauged adequately by the Customer Satisfaction Survey and IRCTC has been professionally conducting such surveys through Third Party agencies. (iii) Food Safety Audit Keeping in view the impact of food safety on public health, food safety audit is being conducted in IRCTC by lab testing at recognized centers through third party. (iv) ISO Certification of Catering Units Quality of catering services can be enhanced through various quality measures including ISO certification. IRCTC has been getting its Catering Units ISO certified through accredited agencies. Out of 158 Base Kitchens of licensees, 124 have already been covered under ISO certification. Licensee operated Base Kitchens have been transferred to Zonal Railways along with Mobile Units. (v) Round the Clock Control Operation In order to monitor the quality of catering services, Central Control has been set up at New Delhi which is fully equipped with Phone, Fax, PC with broadband connectivity and scanner for easy accessibility to passengers. National Toll free number has been provided. The central control is operative round the clock. In addition, all the Zonal offices also have Zonal control offices to monitor the quality of catering services. The control offices monitor catering operations and handle complaints telephonically on the spot to the satisfaction of complainant. In case of any abnormality of train operation, control offices inform all concerned service providers for making provision of catering services so as to avoid any public inconvenience. II-INTERNET TICKETING: The E-Ticketing Performance E- ticketing has been one of the biggest success stories of e-governance and has revolutionized the way the common man deals with the railway. It has resulted in great benefits in terms of convenience, time & energy saving as well as transparency and reduction in corruption. The rapid growth in E-ticketing has been possible not only because Of the ease of the entire process for the customers but also due to a very robust process set up for doing e-reservation which facilitates bookings for all types of credit cards, most major debit cards, cash cards facility, Net Banking facility and five major payment gateways. This is also strengthened by an online instantaneous refund process. The common man, not having computer / net access, is also able to get the e-tickets through various outlets (approx. 1.5 lakh) across 500 cities & towns. To further help the passengers, the online process of booking during 8 to 9AM (the crucial booking hours) was restricted during the year only for direct passengers by prohibiting the agents. Several drives were also launched during the year so as to curb unauthorized practices in E-ticket bookings by unscrupulous people. The system of registration was also strengthened. An IT Anti Fraud Cell has also been set up during the year. The site was made more user friendly and also technologically advanced. Security & process Audits were got conducted through SQTC to identify vulnerabilities in the system & same were got rectified. The process is on going. Internet Ticketing services continue to go from strength to strength. It is handling over 40% of the reserved train accommodation of Indian Railways. Recently we achieved a record of over 4 Lakhs tickets in a single day. The value of tickets booked has gone up to Rs 8,007 Crore during the year 2010-11 as against Rs 6,011 Crore during the previous year. Number of tickets booked (both E and I tickets) through IRCTC website during the year 2010-11has gone up to 9.69 Crore tickets (17.42 crore passengers) as against 7.20 Crore tickets ( 12.92 crore passengers) booked during 2009-10. The booking of railway tickets through internet is now available from 00:30 Hrs to 23:30 Hrs 365 days a year. IRCTC is in the process of further enhancement of the existing infrastructure to further improve services to the customers. 139 RAILSAMPARK IRCTC manages the enquiry services of Indian Railways known as Rail Sampark 139 (Integrated Train Enquiry System of Indian Railways) on PPP basis. In 2010-11, 24.68 crore voice calls and 2.61 crore SMS were handled as compared to 23.11 crore voice calls and 1.25 crore SMS in 2009-10. III. TRAVEL & TOURISM IRCTC offers a wide range of Travel & Tourism products and services to meet the requirements of different segments of tourists. These include Bharat Darshan tourist trains, Bharat Tirth trains, Educational Tours, Mahaparinirvan Express Buddhist Circuit Special Train, Rail and Land Tour Packages, Chartered Trains & Coaches, Hill Charters, Luxury Tourist Train, Cab Rental Services, On-line hotel booking services, Online Air ticketing and Budget Hotels. Travel & Tourism Business generated an income of Rs 67.04 Crore in the year 2010-11 as compared to Rs 44.72 crore in the year 2009-10 recording a growth of 50%. Bharat Darshan Tourist Train (Village on Wheels): IRCTC operates Bharat Darshan tourist trains for the budget segment where the traveler gets to see India at a price of Rs 500/- a day including rail travel, road travel, meals, sightseeing, accommodation and insurance. 60 Bharat Darshan trips were operated across the country with a total of 23,636 passengers during the year 2010-11 as against 57 trips with 22,621 passengers during the previous year. IRCTC has won the GMR Travel World Award 2010 for Excellence in Operations for its Bharat Darshan tours. Mahaparinirvan Express - Buddhist Circuit Special Train The Mahaparinirvan Express offers a 7 Nights / 8 Days all inclusive tour covering various destinations of the Buddhist Circuit and has been launched with the objective of providing a safe, comfortable and reliable tour package for international as well as domestic travelers on this circuit. This train has been awarded the National Tourism Award of Excellence in February 2009 by the Ministry of Tourism. During 2010-11, the train carried 1,367 passengers as compared to 1,039 passengers in the year 2009-10 recording an increase of 32%. Tour Packages IRCTC also operates all inclusive Rail Tour Packages across the country, which include confirmed rail travel, road transfers, accommodation, meals and sight-seeing at reasonable rates. During 2010-11, a total of 49,308 passengers availed IRCTC tour packages as against 43,258 passengers during the previous year. Educational Tours IRCTC operated educational tours for students under its travel to learnscheme and tied up with the Kendriya Vidyalaya Sangathan, Tamil Nadu Government, Assam Government, Jammu and Kashmir Government as well as private schools for operating educational tours for children. In the year 2010-11, 20,441 students and teachers availed the facility of educational tours as compared to 12,729 students and teachers in the year 2009-10. Chartered Trains and Coaches IRCTC operated 243 train/coach charters in the year 2010-11as against 248 charters during the previous year. The company also operated 80 hill charters in the year 2010-11 as against 36 during the previous year. Corporate Travel IRCTC also ventured into the field of Corporate travel in 2010-11 and is offering complete Travel services to Corporates which include air ticketing, booking of domestic as well as international hotels, cab rental, passport and visa facilitation, insurance & forex. Tourism Portal IRCTC''s tourism portal, www.railtourismindia.com. is a One Stop Travel Shop. The portal, which won the National Tourism Award in the year 2008, is increasingly becoming popular among the travelers and offers various Travel and Tourism services such as on-line booking of tourist trains, tour packages, hotels, cab rental as well as air tickets. Maharajas'' Express This is a top end luxury train which is owned by IRCTC and managed by Royale Indian Rail Tours Limited. The Pan India luxury tourist train operated 28 trips carrying 1,030 tourists in the year 2010-11. Bharat Tirth IRCTC launched Bharat Tirth Tourist Trains in February 2011 in fulfillment of announcement made by Hon''ble Minister for Railways in the Budget Speech of 2010. The trains provide three categories of packages (viz. Budget, Standard and Deluxe packages) for meeting requirements of different segments of tourists. In all 4 trips were operated in the year carrying 1,443 passengers. IV PACKAGED DRINKING WATER (RAILNEER) During the year 2010-2011, two plants manufacturing Rail Neer Packaged Drinking Water were in operation at Nangloi (Delhi) and Danapur (Bihar). The production of Rail Neer at Nangloi and Danapur was 3.28 crores and 3.12 crores bottles respectively as against installed capacity of 3.34 crores bottles at each plant. Turnover for the segment for the year 2010-11 was Rs 23.96 crore, which did not include intersegment sale amounting to Rs 19.36 crore. Rail Neer produced at Nangloi is distributed on mobile trains and to static catering units primarily in Delhi area and other states such as Haryana, Punjab, Uttara Khand, West U.P and Rajasthan. In addition, supply is also made to Parliament House, PMO, Railway Board and Ministry of External Affairs etc. Rail Neer produced at Danapur is distributed to states of Bihar, West Bengal, Jharkhand, EastU.P, Assam and Orissa. During the year Rail Neer Plant, Danapur got certification of quality management system as per ISO- 9001-2008. Rail Neer Plant, Nangloi is also in the process of getting certification. The result of the test, carried out by accredited laboratories on Rail Neer Packaged Drinking Water indicate that the quality of Rail Neer conforms to Europeon Economic Community (EEC) norms for pesticide residue. One more Packaged Drinking Water Plant with installed capacity of 1.8 lac bottles/day has also been set at Palur (Chennai) and has become operational in July 2011. 6. COMMONWEALTH GAMES DELHI -2010 The Commonwealth Games was held in Delhi in 2010 and were set the largest international multi-sporting event held in India since the 1982 Asian Games. The Games were held over a period of 12 days from 3rd October to 14th October, 2010 and majority Athletes and Technical official were catered to from 23rd September (training Period) onwards and had participation from over 7,000 athletes from 71 Commonwealth Games Associations. The management and provision of Commonwealth Games ticketing, all off-board arrangements for CWG Special Shatabdi Train at Agra and the catering arrangements at SPM and Talkatora Stadiums were a feather in IRCTC''s cap. The details are as under:- CWG TICKETING - IRCTC was appointed as the official ticketing agency for the XIX Commonwealth Games 2010, Delhi which was one of the largest international multi- sporting event to be held in India since the 1982 Asian Games. It successfully handled the ticketing operations for the event for a total seating inventory of 1.4 million seats for 290 sporting session in 17 sports at 12 venues over 12 days. This mammoth job covered the complete gamut up to final delivery of tickets to customers including: - - Design, delivery and management of the ticketing technology platform. - Development and management of integrated online real time transactional website call centers & manual outlets for booking of tickets and customer service. - Operationalizing and managing ticket box offices at the venues. - Training and management of ticketing staff. - Fulfillment of ticketing orders including ticketing, printing and delivery (domestic & international). - Logistics of managing physical inventory and cash collections. - Conflict resolution at the venues. This was achieved by entering into a consortium with M/s Broad Vision (for software support) and M/s Ticket pro (for ticketing expertise). Performance of IRCTC has been commended by all concerned including the Shungloo Committee examining various CWG projects. CWG TOURISM -ASpecial Shatabdi Train was run by IRfor the CWG sports persons and officials - IRCTC operated and provided off-board arrangements for visit of over 3000 CWG athletes and officials at Agra during October, 2010 in collaboration with UP Tourism. The services were highly appreciated by the guests. CWG CATERING - IRCTC catered for Package #2 at SPM (AQUATICS) & Talkatora (Boxing) Lounges for Athletes & Team Officials, Technical Officials, Media, and VIP & Games Family. IRCTC provided outstanding catering service for the above groups at different lounges where over 3500 meals per day were served. IRCTC was highly commended for professional friendly service and comprehensive menu which was a melange of Indian and International delicacies. 7. FUTURE GROWTH STRATEGIES IRCTC at this juncture is having a fresh look at its business segments, through introspection. It is set to take new initiatives in various fields to face the tough challenge that it is faced with. The Corporation aims to grow by leaps and bounds. For this purpose BIG HAIRY AUDACIOUS GOALS are being set aiming to become a Rs 2500 crore company by FY''15. We are aiming high especially keeping in view ofthe fact that the Turnover target for FY''12 is only Rs 500 crore, much lower than Rs 765 crore achieved during the current year. To get anywhere near the aim for FY''15, Railways unstinted support is solicited. It needs rational & positive policy initiatives from the Ministry in respect of Budget Hotels, Rail Neer, e-ticketing, terminal management, commercial advertising and Tourism products. There is also a need to look at what more non core activities can be transferred to the Corporation from Ministry of Railways. The corporation needs to be empowered to fulfill its initial mandate of Budget Hotels and grow into this area on a war footing. Over the years, IRCTC has developed extensive capabilities in the fields of hospitality, catering, tourism, package drinking water and e-commerce. It has a Pan India presence with grid of Zonal, Regional and Station officers in major cities, more than 1500 Hospitality Professionals from reputed IHMs, expertise in mass food production, distribution and quality control, complex operations management in-house and outsource model, development of hi-end catering facilities, designing, upgrading and consultancy in Hospitality projects, expertise in commissioning and operating of hi-end and low-end tourism products, expertise in Tourism management, extensive experiences building and operating PDW plans and serving demand of IR network and largest e-commerce website in Asia-Pacific. IRCTC is taking various initiatives to leverage on its expertise and experience and grow many fold in the coming years as detailed below: A. CATERING & HOSPITALITY - Future Potential and Planning IRCTC is accelerating its efforts for capturing the Catering & Hospitality Business by taking various initiatives. (i) Non-Railway Catering Large no. of future projects have been identified and are at various stages in the pipeline for non railway catering segment. Some of the major ones are: - Delhi Metro Rail Corporation (DMRC), New Delhi - Indira Gandhi National Open University, New Delhi - Rourkela Steel Plant, Rourkela, Orissa - SAI Sports Hostel at JNS& IG, New Delhi - National Institute of Food Technology Entrepreneurship & Management-Kundli (NIFTEM) (ii) Facility Management IRCTC with its partners also provides a professional Facility Management in some of the Prominent Institutes. IRCTC provides one window solution for Catering, Front office and Facility Management solutions includes Housekeeping, Security, Laundry, Landscape Management, Maintenance and AMC etc. Our Facility Management Services are especially molded for the optimal utilization of the available resources to provide excellent Services to the Institutes. We have a team of expert especially trained to execute undertaken projects as per the requirement of the clients. (iii) Central Kitchen IRCTC is opening a state of art Central Kitchen (Food Factory) with a capacity of about 25000 meals per day .This, one of its kind state of art Food Factory in the region is in Line with the major Air Flight Catering Kitchens to produce meals of high quality and standard. The food factory will be fully automated with equipment from the best manufactures and professionals from India & abroad. The menu though limited initially to vegetarian, non-vegetarian and combo meals (Indian/Chinese) will be produced with cleanliness and hygiene, as the hall mark. (iv) DMRC IRCTC with DMRC (Delhi Metro Rail Corporation) New Delhi is soon planning to come up with over 130 Kiosk across Delhi-NCR at suitable Metro stations in a Phase wise manner, where it shall provide, Metro Commuters with a wide variety of quality food & beverages. (v) HPCL/BPCL MOU IRCTC has entered into MoU with leading Petrolieum PSUs for setting up for Food Plazas, Motels and other travelers facilities at suitable petrol outlets on PAN India basis. This has great potential keeping in view of the fact that Government''s emphasis of making more than 20000 kms express ways in the near future. (vi) Budget Hotel IRCTC wants to actively pursue the process of establishing Budget Hotels across Major tourists and religious destinations & Management of existing Rail Yatri Niwas and Budget Hotel / Resorts / Motel. Budget Hotel at all major railway stations where possible with a PPP (Public Private Partnership) to provide Rail Passengers a High Standard Clean accommodation Facility at reasonable price in the vicinity of the Station. This will of course require a clear and rational policy initiative from Ministry of Railways. B. INTERNET TICKETING - Future potential and planning: The IRCTC website is presently catering to over 40% of total PRS tickets of Indian Railways. With the increasing telecom and internet connectivity in the country, there is huge potential for further growth. In order to meet the future demand, capacity enhancement of the infrastructure is in process. In this direction, setting up of state of art data center, installation of high capacity servers, upgradation of internet bandwidth are at advanced stage of implementation. C. TOURISM - Future potential & planning IRCTC''s vision is To be the leading provider of high quality travel and tourism services in the country. Your Corporation is planning to further expand tourism business in the coming years by expanding existing business lines as well as development of new lines such as Corporate travel as well as inbound travel services for individual travelers. Specific focus areas for the future are - Educational Tours : IRCTC would continue to be the leading provider of specially designed packages with strong educational content & a caring environment to meet the needs of educational institutions across the country under its Travel to Learn scheme. - Corporate Travel: IRCTC will continue to focus on providing cost effective and efficient travel solutions to Corporates, especially PSUs. - Buddhist Circuit Travel: IRCTC aims to further increase services on this circuit by launching a special train from Chennai and is also working on development of a new train for replacing existing Mahaparinirvan Express Services. - Deluxe Tourist Train: IRCTC plans to capture a niche available for domestic & international tourists with a package in the range of about USD 250 per day. - Online Travel: IRCTC would continue to strengthen its position as the biggest E- Commerce site and focus on offering value for money online travel solutions to a range of customer segments. - Rail Tour Packages: IRCTC would continue to strengthen its portfolio of comprehensive rail based packages utilizing regular train services. D. PACKAGED DRINKING WATER - Future potential & planning - As per one study, daily requirement of Packaged Drinking Water over Indian Railway network is approx 30 lac bottles/day, against which, at present IRCTC produces 2 lac bottles/day, which shall become 3.8 lac bottles/day by end of 2011. From year 2013, when plant at Ambernath (Mumbai) is commissioned, IRCTC will have capacity to produce 5.8 lac bottles/day, which shall be about 15% of total requirement. - Ambernath plant will have capacity of 2 lakh bottles per day at estimated cost of Rs 19 crores. With optimum project management, work is likely to be completed by end of year 2012-13 & commercial production will start in 2013. The site location and plans have been finalized. - To increase bottling capacity, IRCTC is in process of setting up Joint Venture with participation from Private Industry. The Joint Venture firm will set up more Packaged Drinking Water Plants across the country. Two potential sites identified, are at Nagpur and Hyderabad. - Ministry of Railways has decided to set up six packaged drinking water plants under mode. 8. AWARDS I RECOGNITION In recognition of the excellent performance of the Corporation in various fields, the following awards have been conferred on IRCTC during the year: - The 3rd DSIJ PSU Award 2011, for being fastest growing non-manufacturing companies with balance-sheet size less than Rs 4000 Crore. The Company was awarded ''Speed King (Miniratna)'' - April, 2011. - The SKOCH''s - The World Open Award for Integrated Train Enquiry System (ITES) from the Controller of Certifying Authority, Government of India - Oct., 2010. - The India Pride Award-Gold from Shri Pranab Mukherjee, Hon''ble Union Minister of Finance, for Internet Ticketing - Sept., 2010. 9. HUMAN RESOURCE DEVELOPMENT AND TRAINING INITIATIVES During the year 2010-2011, training to more than 3500 persons engaged with the Corporation was imparted on various aspect of their work. The training programmes were organised at Customer Care Centre of the Corporation in Delhi and reputed Regional and Government institutes. 10. INDUSTRIAL RELATIONS Cordial industrial relations were maintained during the year. 11. VIGILANCE 11.1 The Vigilance Department is presently headed by full fledged Chief Vigilance Officer and has constantly endeavoured to emphasize on preventive Vigilance to improve upon systems and procedures and leaving minimum scope for discretion. It also ensured to enforce discipline in exercising power in a judicious way in matters relating to administrative and financial functions. 11.2 The Vigilance set up in IRCTC has been an effective managerial tool in enhancing the performance of the Corporation byway of advising functional Divisions to systematize/ document the policies/ procedures. 11.3 The vigilance Awareness Week was organized during 25th October, 2010 to 1st November, 2010. Various programmes/ lectures were arranged in all the offices of the IRCTC with a view to create awareness about preventive measures through system improvement and use of Information technology. 11.4 Performance of the Vigilance Department is reviewed regularly by the CVC and Managing Director/ IRCTC. 11.5 IRCTC has implemented the Integrity Pact program in line with the recommendations of Central Vigilance Commission to bring the internationally acclaimed best practices for raising integrity levels in procurement of works and services etc. The adoption of Integrity Pact by IRCTC has helped in establishing healthy business practices. 12. IMPLEMENTATION OF THE OFFICIAL LANGUAGE The Corporation continued its thrust on the Official language implementation in-line with Govt, of India''s Policy. Several steps were taken to increase the use of Rajbhasha in the Corporation and the Corporation has proved its commitment to ensure the implementation of the Rajbhasha Policy. The Corporation has made all efforts to increase the use of official language for its continued propagation, various activities like organizing workshops; to give training, meetings, essay competition, cultural activities, Publication of bilingual House Magazine PRERNA etc. For outstanding and noteworthy contribution in Hindi, number of incentives and reward schemes are in force. During the financial year 2010-11, the Second Sub Committee of the Parliamentary Official language Committee inspected the office of the Corporation in order to review the use of Hindi in the Corporation. The Committee appreciated the use of Hindi by Corporation. 13. MANAGEMENT DISCUSSION AND ANALYSIS REPORT The Report on Management Discussion and Analysis is placed as per Annexure-I to this report. 14. PARTICULARS OF EMPLOYEES As required under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, none of the employees were drawing salaries and allowance beyond the limit stipulated therein. 15. PARTICULARS OF ENERGY CONSERVATION. TECHNOLOGY ABSORPTION. FOREIGN EXCHANGE EARNINGS AND OUTGO ETC Details as per the provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 regarding Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo is given as per Annexure-ll. 16. DIRECTORS'' RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Director''s Responsibilities Statement; it is hereby confirmed: (i) That in the preparation of annual accounts for the financial year ended 31st March, 2011, the applicable accounting standards have been followed. (ii) That the directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation at the end of the financial year and profit and loss of the Corporation for the period under review. (iii) That the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities. (iv) That the directors have prepared the annual accounts for the financial year ended 31st March, 2011, on a going concern'' basis. 17. COMMENTS OF COMPTROLLER AND AUDITOR GENERAL The Comments on the accounts for the year ended 31st March, 2011 by the Comptroller and Auditor General of India under Section 619(4) of the Companies Act, 1956 forms part of the Annual Report. 18. CORPORATE GOVERNANCE AND MOU SIGNING A report on Corporate Governance, forming part of this report, is given in Annexure-III. The certificate on Corporate Governance obtained from the practicing Company Secretary is given in the Annexure-IV to this report. The Corporation has also signed an MOU with the Government of India, Ministry of Railways thereby laying inter alia the physical and financial targets for the year 2010-11. 19. CORPORATE SOCIAL RESPONSIBILITY IRCTC''s Corporate Social Responsibility Policy is To remain a responsible Corporate entity mindful of its social responsibilities to all stakeholders including railway passengers, customers, consumers, shareholders, employees, local community and society at large. An amount of Rs 2.25 Crore has been earmarked by the Corporation for CSR Activities for the year 2010-11. IRCTC has undertaken the following measures towards fulfilling it CSR obligations: Jaipur Foot CSR Project was taken in association with Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) (also known as ''Jaipur Foot'') to provide Artificial Limbs /Calipers and hand paddled tricycles to physically challenged people. Vide this project 957 physically challenged people were benefitted. The cost ofthe project was Rs 25.37 lacs. The project started in Delhi and Jaipur on 8th March, 2011 and completed on 25th March, 2011. Meri Dilli Meri Yamuna Under Meri Dilli Meri Yamuna drive to keep Yamuna clean, a project has been taken in association with Shajanabad Re-development Corporation (SRDC), Government of NCT of Delhi and Art of Living Foundation'' of Sri Sri Ravishankarji. Vide this project, the Chat pooja Ghat at ITO will be developed into a picnic spot with separate immersion area for pooja material and flowers and provisions for walkways, lighting, trees, grass, toilets, etc. .An amount of Rs 56 lacs has been sanctioned as IRCTC''s contribution to the project. Sulabh Toilet Complex on Buddhist Circuit Project for construction and maintenance of Sulabh Complex (Public Toilet) is taken in association with Sulabh International. The project is proposed to be developed on the Buddhist Circuit route from Gorakhpur (near Anand Nagar, Pharendra) to Nautanva in the district of Maharajganj, Uttar Pradesh for Tourist and other travellers on Buddhist Circuit. Land allocation is done by UP Govt and project activities have commenced. The estimated cost of the Project is Rs 25.11 lacs. Vocational Training Project is taken up in association with Institute of Hotel Management (IHM), Pusa, Under the project financial assistance would be provided to 5 meritorious students including at least one girl student. The Project is expected to cost the company Rs 18 lacs. Other Activities - Preventing spillage of garbage and ensuring safe disposal of garbage in Railway premises and reduce consumption. - Planting of trees 20. SUSTAINABLE BUSINESS DEVELOPMENT: IRCTC has undertaken the following measures for ensuring sustainable business development: - Utilization of solar energy at Base Kitchens and Refreshment Rooms. - Collection and disposal of used Rail Neer Bottles to prevent its misuse. - Rainwater harvesting at Railneer plants to preserve the ground water level. - Installation of environment friendly CDTS toilets in the Buddhist Circuit Special Train as well as the Maharajas'' Express. - Introduced Induction Cooking System to minimize fire hazards in Railway premises and to reduce electricity consumption. - Safe discharge of waste water in Solar Pits to recharge the water table in the earth and correcting ecological balances. - Using environment friendly products for packaging of food items and serving of beverages. - Food and Safety audits for minimizing health hazard. 21. AUDITORS M/s Bhushan Bensal Jain Associates, Chartered Accountants, New Delhi were appointed as Corporation''s Statutory Auditors for the year 2010-2011 by Comptroller and Auditor General of India, New Delhi. 22. BOARD OF DIRECTORS At present, the Board of the Corporation consists of a part-time Chairman, Managing Director, three Functional Directors, one Government Nominee Official Directors and two part time non-official Directors. The Board met five (5) times during the year for transacting business. Following Directors held office as on the date of the Report: - Shri Vinay Mittal, Chairman, Shri Rakesh Kumar Tandon, Managing Director, Shri.Nalin Shinghal, Director (Tourism & Marketing), Shri Vinod Asthana, Director (Catering Services), Shri Vishwa Ranjan Gupta, Director(Finance) Smt. ManiAnand, Government Director Shri R.N. Bhardwaj, Independent Director Shri R.K.Agrawal, Independent Director Shri Vinay Mittal, Chairman & Member Traffic, Railway Board joined the Board ofthe Corporation as Chairman on 26.07.2011 in place of Shri VivekSahai, who ceased to be Director of the Corporation on attaining superannuation from the services of Ministry of Railways. The Board wishes to place on record its appreciation and gratitude for the valuable guidance and services rendered by Shri Vivek Sahai during his association as Chairman of IRCTC. Shri Naresh Salecha, Executive Director, F(C), Part-time Government director, ceased to be director ofthe Corporation w.e.f 01.12.2010. Shri Jagdeep S. Chhokar and Shri Alok Shivapuri, Independent Directors ceased to be director on completion of their tenure of three years on 27.05.2011. The Board wishes to place on record its appreciation for the valuable guidance and services rendered by Shri Naresh Salecha, Shri Jagdeep S. Chhokar and Shri Alok Shivapuri during their association on the Board of Directors of Corporation. 23. AUDIT COMMITTEE An Audit Committee of the Board of Directors was earlier constituted by the Corporation. The Audit Committee of Board of Directors met Four (4) times during the year for transacting business and following Audit Committee Members held office during the year 2010-11:- Shri R. N. Bhardwaj, Independent Director Shri R.K. Agarwal, Independent Director Shri AlokShivapuri, Independent Director Shri Jagdeep S. Chhokar, Independent Director Shri VinodAsthana, Director(Catering Services) Shri R.N. Bhardwaj has been elected as Chairman of the Audit Committee. 24. ACKNOWLEDGEMENT & APPRECIATION The Board of Directors place on record their grateful thanks for the guidance and cooperation extended all through by the Ministry of Railways without whose active support the achievements by the Corporation during the year under review would not have been possible. The Board of Directors is also extremely grateful to its valued customers and licensees. The Board also acknowledges with thanks the constructive suggestions received from C&AG of India, Statutory Auditors and Internal Auditors. Last but not the least, the Board wishes to place on record its appreciation for the untiring efforts and contributions made by the employee at all levels, to ensure that the Company continues to grow and excel. For and on behalf of the Board of Directors Sd/- (Vinay Mittal) Chairman Place: New Delhi Date : 20th September, 2011

Director’s Report