1.6 TANGIBLE FIXED AND INTANGIBLE ASSETS

a) Tangible Fixed Assets are stated at historical cost less accumulated debrciation and impairment losses, if any.

b) Incidental expenditure during construction period including interest charges incurred upto the date of completion, net of

interest recovered on mobilisation advance, are capitalised.

c) Intangible Assets are recognized at the consideration paid for acquisition less accumulated amortization and impairment

losses, if any.

d) Spare valuing more than ` 10 lakhs which can be used only in connection with an item of fixed asset and whose use is

expected to be irregular are capitalised and debrciated over the useful life of the principal item of the relevant assets.

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e) Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future

benefits from such asset beyond its brviously assessed standard of performance.

f) In case of concession projects, entry fees are capitalized and amortised over the concession period. Start-up and sundry

expenses related to the initial phase of the operations are expensed as incurred. 

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF brPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements have been brpared to comply with the Generally Accepted Accounting Principles in

India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

1.2 USE OF ESTIMATES

The brparation of the Consolidated Financial Statements requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the Financial

Statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates.

Future results could differ due to changes in these estimates and the difference between the actual result and the estimates

are recognized in the period in which the results are known/materialize.

1.3 PRINCIPLE OF CONSOLIDATION

The consolidated financial statements relate to RITES Limited (“the Company”) and its subsidiary companies and joint

ventures. The consolidated financial statements have been brpared on the following basis :-

a) The financial statements of the Company and its subsidiary companies are combined on a line-by-line basis by adding

together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group

transactions in accordance with Accounting Standard (AS) 21 – “Consolidated Financial Statements”.

b) Interest in Joint Ventures have been accounted by using the proportionate consolidation method as per Accounting

Standard (AS) 27 – “Financial Reporting of Interest in Joint Ventures”.

c) In case of foreign subsidiaries, being non-integral foreign operations, revenue items are consolidated at the average

rate brvailing during the year. All assets and liabilities are converted at rates brvailing at the end of the year. Any

exchange difference arising on consolidation is recognized in the foreign currency translation reserve.

d) Minority Interest’s share of net profit of consolidated subsidiaries for the year is identified and adjusted against the

income of the group in order to arrive at the net income attributable to shareholders of the Company.

e) Minority Interest’s share of net assets of consolidated subsidiaries is identified and brsented in the consolidated

balance sheet separate from liabilities and the equity of the Company’s shareholders.

f) As far as possible, the consolidated financial statements are brpared using uniform accounting policies for like

transactions and other events in similar circumstances and are brsented in the same manner as the Company’s

separate financial statements.

g) In case where an income of one intra group entity results into expenditure to be capitalized by the other counter

entity, the said income/expenditure is not eliminated. The Financial Statements are brpared by applying uniform

accounting policies.

h) The financial statements of the subsidiary companies and joint venture entities except Companhia Dos Caminhos De

Ferro Da beira, Sa (CCFB) used in the consolidation are drawn up to the same reporting date as of the Company, while

financial statements of CCFB are drawn based on calendar year. Further, as stated in company’s overview, RMAC is

under liquidation having no significant transactions and have not been considered for consolidation. Unaudited financial

statements of CCFB, Mozambique for the year ended 31st December, 2015 are considered for consolidation purpose.

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1.4 REVENUE RECOGNITION

1.4.1 Consultancy Fee

Consultancy fee is accounted for on the basis of bills raised/due for the year. It also includes supplies and expenses forming

part of the contract which are recoverable from the customers.

In Construction Management/Supervision Contracts, fee is calculated as a percentage on the value of work done/built-up cost

of each contract as determined by the Management, pending customer’s approval, if any.

Mobilisation advance is adjusted against running bills and mobilisation fee is recognized as income in the year, if as per

Management’s review certain activities against that contract have been carried out during the year.

Provision for incomplete assignments is made in respect of consultancy assignments which are sbrad over a number of

years, after considering the following factors regarding company’s obligation for:

i) rework activities of work done.

ii) maintenance activity after completion of project.

iii) removal of defect, if any, during defect liability period.

1.4.2 Construction Projects

Where the outcome of a construction contract/project can be estimated reliably, revenue and costs associated with the construction

contracts/projects are recognized by reference to the stage of completion of the contract/project activity which is measured by

reference to the proportion that costs incurred for work performed upto the reporting date bear to the estimated total contract/project

costs. Any anticipated losses are recognized as an expense immediately in the Statement of Profit & Loss.

1.4.3 Inspection Fee

Inspection fee is accounted for on the basis of inspection certificates issued.

1.4.4 Export Sales

Export sales are accounted for on the basis of bills raised where all significant risks and rewards of ownership have been

transferred to the buyer.

1.4.5 Lease Services

Lease services are accounted for on time basis over the lease period. However, reimbursables under the contract are

accounted for on accrual basis. Initial direct costs are charged to revenue.

1.4.6 Railway Operations

Revenues from railways operations is recognized as under:

i) Local Traffic – sales invoice/consignment note.

ii) International Traffic (Ascendant)- consignment note on loading of goods to train.

iii) International Traffic (Descendent)- advice note on unloading of goods from train.

Revenue from the transportation of passengers is recognized on collection.

1.4.7 Wind Mill Projects

Revenue from sale of power through wind mill projects is recognized on the basis of certificate from concerned State Electricity

Authority for energy fed in kwh (units) in authority’s system and as per terms and conditions of the Agreement with the

beneficiary.

1.4.8 Power Trading

Income from sale of electricity is recognized as per the terms and conditions of the Agreement with the beneficiary.

1.4.9 Other Income

Other income is accounted for on accrual basis except claims/supplementary claims / counter claims/interest on delayed

payments / awards in favour of the Company/export incentives/ brmium on sale of licenses etc. which are accounted for on

final settlement / realization. Dividend is recognized when right to receive it is established.

1.5 WORK IN PROGRESS

1.5.1 Consultancy Projects

Work in progress is recognized based on direct costs incurred on the activities which are in progress at end of the year for

consultancy projects involving stage payments.

1.5.2 Construction Projects

In case of turnkey / lump sum contract/project where physical progress is less than 15% of total physical work of a contract/

project, the same will be treated as a part of work-in-progress on cost basis.

1.6 TANGIBLE FIXED AND INTANGIBLE ASSETS

a) Tangible Fixed Assets are stated at historical cost less accumulated debrciation and impairment losses, if any.

b) Incidental expenditure during construction period including interest charges incurred upto the date of completion, net of

interest recovered on mobilisation advance, are capitalised.

c) Intangible Assets are recognized at the consideration paid for acquisition less accumulated amortization and impairment

losses, if any.

d) Spare valuing more than ` 10 lakhs which can be used only in connection with an item of fixed asset and whose use is

expected to be irregular are capitalised and debrciated over the useful life of the principal item of the relevant assets.

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e) Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future

benefits from such asset beyond its brviously assessed standard of performance.

f) In case of concession projects, entry fees are capitalized and amortised over the concession period. Start-up and sundry

expenses related to the initial phase of the operations are expensed as incurred.

1.6.1 Debrciation and Amortization

(a) Debrciation and amortization on tangible fixed assets and intangible assets are provided on straight line method over

the estimated useful life determined by management. The useful lives of assets are as brscribed in part C of schedule II

of the Companies Act, 2013 except assets indicated in sub paragraphs from (d) to (h) below. In respect of additions to/

deductions from the assets during the year, debrciation/amortization is charged on pro rata basis.

(b) The useful life and debrciation/amortization rates of the various assets, are as under:-

Assets Useful Life (Years) Debrciation / Amortization Rate (%)

i) Furniture 4-10 10.0-23.75

ii) Fixture 5 20.0

iii) Office Equipment 5-6 15.0-20.0

iv) Mobile Hand Set 3 33.3

v) Coolers & Air Conditioners 7 14.3

vi) Air Conditioning Plant 15 6.7

vii) Computer Hardware 3-4 23.75-33.3

viii) Server & Networks 6 16.67

ix) Survey and Equipments 4-10 10.0-23.75

x) Vehicles 4-8 12.5-25.0

xi) Buildings on Freehold land 60 1.7

xii) Locomotives-New 15 6.7

xiii) Locomotives-In service 10 10.0

xiv) Coaches-New 15 6.7

xv) Coaches-In service 10 10.0

xvi) Intangible Assets 3-4 25.0-33.33

xvii) Windmill Plant 25 4.0

xviii) Plant & Machinery 15 6.3

xix) Buildings (rehabilitated)-CCFB 20 4.75

xx) Locomotives (rehabilitated)-CCFB 25 3.80

xxi) Tools and Plant 10 9.5

xxii) Workshop Machinery 15 6.33

(c) Any addition or extension, which becomes an integral part of the existing asset, is debrciated over the remaining useful

life of that asset.

(d) In respect of BOT assets, debrciation is charged over the period of project or the life stated above which ever is

lower.

(e) Leasehold land is amortized over the lease term or useful life of asset built/installed on such land whichever is shorter.

(f) In respect of buildings on lease hold land, debrciation is charged over the period of lease of land or the useful life stated

above for buildings on freehold land, whichever is lower.

(g) In case of RITES Ltd., as per company’s assessment, Fixtures, Mobile Hand Set, Coolers & Air Conditioners and In-

Service Locomotives & Coaches (refurbished) have lower useful lives than brscribed in part C of schedule II of the

Companies Act, 2013. Therefore debrciation is charged at higher rate than brscribed under the Companies Act, 2013.

(h) In case of holding & its subsidiary companies in India, Individual low cost assets of value less than ` 5,000/- and software

of value less than ` 100,000/- are entirely debrciated/amortized in the year of acquisition. In case of Joint Venture entity

abroad, assets having purchase cost up to US$ 500 and software up to US$ 1000 are charged to income statement in

the year of purchase.

(i) In case of concession projects, rehabilitation / major overhaul cost incurred on conceded assets is debrciated over the

life indicated above or over the remaining period of the concession whichever is lower.

(j) In case of holding company & its subsidiary companies in India, a nominal value of ` 1/- is assigned to the fully debrciated

assets except for the assets which are fully charged off to the income statement in the year of purchase being low value

assets.

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1.6.2 Capital Work in Progress

Assets which are not ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and

attributable interest.

1.7 INVESTMENTS

(a) Long-term investments, excluding Investment properties, are stated at cost. Diminution in value, if any, which is of a

temporary nature, is not provided.

(b) (i) Current Investments are stated at cost or fair value whichever is less.

(ii) Any diminution in the carrying amount and any reversals of such diminutions are recognized in the Statement of

Profit & Loss.

(c) (i) Investment properties are stated at historical cost less accumulated debrciation and impairment, if any.

(ii) Investment properties are capitalized and debrciated, where applicable, in accordance with the policy stated for

tangible fixed assets.

(iii) Impairment of investment property is determined in accordance with the policy stated for impairment of assets.

1.8 JOINT VENTURE

Contracts executed under Joint Venture

(a) in jointly controlled operations, the company recognizes its interest in the financial statements:

(i) the assets that it controls and the liabilities that it incurs; and

(ii) the expenses that it incurs and its share of the income that it earns from the joint venture.

(b) (i) in an unincorporated jointly controlled entity, share of profit/loss from joint venture is accounted in the year when

determined by way of incorporating proportionate income and expenditure.

(ii) in an incorporated jointly controlled entity, dividend from joint venture is accounted when right to receive it is

established/received.

1.9 INVENTORIES

(a) Inventories are valued at cost on First In First Out (FIFO) basis or net realizable value whichever is less.

(b) Consumables are charged to the Statement of Profit & Loss in the year of purchase irrespective of the value.

(c) The diminution in the value of obsolete, unserviceable, slow moving and non-moving stores and spares is ascertained

on review and provided for.

1.10 EMPLOYEES BENEFITS

1.10.1 Defined Contribution

1.10.1.1 Provident Fund / Pension Scheme/Post Retiral Medical Schemes

Defined contributions towards provident fund, pension under EPFO, superannuation pension fund and post retiral medical schemes

are charged to the Statement of Profit & Loss based on contributions made in terms of applicable schemes on accrual basis.

1.10.2 Defined Benefits

1.10.2.1 Gratuity

The Company has set up a Gratuity Trust Fund which is being administered by Life Insurance Corporation of India (LIC). The

annual gratuity liability is determined based on actuarial valuation under Group Gratuity Scheme on the basis of information

provided of employees and their remuneration at the end of each year. The contribution paid / payable annually to cover

future liability for gratuity based on actuarial valuation is charged to the Statement of Profit & Loss.

1.10.2.2 Other Benefits

Defined Benefits provided by company to employees - Long Service Award, Leave Travel Concession, Leave Encashment

and Medical Leave (LHAP) are accounted for on actuarial valuation made at the end of year. The actuarial gain/loss is

recognized in the Statement of Profit & Loss of the year.

1.10.3 Ex-gratia payments on death are recognized on payment basis in the Statement of Profit & Loss.

1.10.4 Terminal Benefits to Contract Employees

Leave Encashment and Contract Completion Benefits are provided on accrual basis in the Statement of Profit & Loss.

1.11 RESEARCH & DEVELOPMENT

Revenue expenditure incurred/paid during the year on research is charged to the Statement of Profit & Loss. Development

costs of product are also charged to the Statement of Profit & Loss unless a product’s technological feasibility has been

established, in which case such expenditure is capitalized. The amount capitalized comprises expenditure that can be directly

attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its

intended use. Fixed assets are debrciated in accordance with the policy stated for tangible fixed and intangible assets.

1.12 TAXES

Taxes including current income tax are computed using the applicable tax rates and tax laws. Liability for additional taxes, if

any, is provided/paid as and when assessments are completed. Tax expense relating to foreign operations is determined in

accordance with tax laws applicable in countries where such operation are domiciled.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives right to future economy benefits in the form

of tax credit against future income tax liabilities is recognised as an asset in the Balance Sheet if there is convincing evidence

that the company will pay normal tax within the period brscribed for the utilisation of such credit.

The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the

company does not have convincing evidence that it will pay normal tax during the specified period in future.

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1.13 DEFERRED TAX

Deferred Tax resulting from “Timing Difference” between book and taxable profits is accounted for using the tax rates and

laws that have been enacted or substantively enacted as on the balance sheet date that originate in one period and is likely

to reverse in one or more subsequent periods.

In the event of unabsorbed debrciation and carry forward of losses, deferred tax assets are recognized only to the extent

that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available to realize

such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that

sufficient future taxable income will be available to realize these assets.

The Group offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes

on income levied by the same governing taxation laws.

1.14 RATES & TAXES

Overseas taxes on foreign assignments, service tax, value added tax, alike taxes, professional tax, property tax, entry tax,

labour cess, octroi etc. paid/accrued in India or abroad for which credit are not available to the company are charged to the

Statement of Profit & Loss.

1.15 ADVANCES

Interest on house building, vehicle, computer, equipment, daughter marriage and multi-purpose advances is accounted for

on accrual basis and is recoverable after full recovery of the principal amount.

1.16 brPAID EXPENSES AND PRIOR PERIOD ADJUSTMENTS

Prepaid expenses and prior period adjustments up to ` 50,000/- in each case are treated as expenditure/income of the year

and accounted for to the natural head of accounts.

1.17 AFTER SALES SERVICE EXPENSES

Expenses for after sales services rendered in respect of export sales are recognized in the year in which sales are

recognized.

1.18 TRANSLATION OF FOREIGN CURRENCY ACCOUNTS

The Company has foreign currency transactions in respect of Integral Foreign Operations.

1.18.1 Convertible Foreign Currencies

Transactions in foreign currencies are initially recorded at the exchange rate brvailing on the date of transaction. Foreign

currency monetary items and contingent liabilities are restated at the exchange rates brvailing on the reporting date. Foreign

currency non-monetary items are reported at the exchange rate brvailing on the date of transaction.

In respect of transaction covered by forward exchange contract, the difference between the contract rate and spot rate on the

date of transaction is recognized in the statement of profit & loss over the period of the contract.

1.18.2 Non-Convertible Foreign Currencies

Income and Expenditure are translated at the available average rate. Non-Convertible foreign currency monetary and nonmonetary

items are initially recorded at the exchange rate brvailing on the date of transaction or at available average rate.

Monetary items and contingent liabilities are restated at the exchange rate brvailing on the reporting date. Non-monetary

items are reported at the exchange rate brvailing on the date of transaction.

1.18.3 Exchange difference arising on translation of foreign currency transactions, except on borrowing cost in foreign currencies

which is capitalized on eligible assets, is recognized in the statement of profit & loss.

1.18.4 For the purpose of consolidation, income and expenses are translated at average rates and the assets and liabilities are

stated at closing rate. The net impact of such change is accumulated under foreign currency translation reserve.

1.19 CASH AND CASH EQUIVALENTS

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term balances with an original

maturity of three months or less from the date of acquisitions which are readily convertible into known amounts of cash and

be subject to an insignificant risk of change in value.

1.20 CASH FLOW STATEMENT

Cash flow statement is made 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.

1.21 EARNINGS PER SHARE

In determining earnings per share, the company considers the net profit after tax and includes the post tax effect of any

extraordinary item. The number of shares used in computing basic earnings per share is the weighted average number of

shares outstanding during the period and diluted earnings per share is computed using the weighted average number of

shares outstanding after adjusting the effect of all dilutive potential equity shares that were outstanding during the period.

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1.22 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value and impairment loss is charged

to the Statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in

prior accounting periods is reversed if there has been a change in the estimate of recoverable amount and such losses either

no longer exists or has decreased. Reversal of impaired loss is recognized in the Statement of Profit & Loss.

1.23 PROVISION FOR DOUBTFUL DEBTS AND ADVANCES

In case of holding company, provision for doubtful debts is made for debts outstanding for a period of over 3 years, except in

cases where amount is considered recoverable as per the management. For other debts, provision is made when there is an

uncertainty of realization.

Provision for advances is made when there is an uncertainty of realization irrespective of period of its due.

Debts and advances are written off when unrealisability is almost established.

In case of subsidiaries & joint ventures entities, provisions of doubtful debts & advances are made whenever there are

uncertainties in its realization.

1.24 PROVISION FOR WARRANTY

The estimated liability for warranties is recognized when products are sold with warranty provision as per the contract. These

estimates are established using historical information on the nature, frequency and average cost of warranty claims and

management estimates regarding possible future incidence based on corrective actions on product failures. The timing of

outflows will vary as and when warranty claim will arise or incurred.

As per the terms of the contracts, the Company provides post-contract services / warranty support to some of its customers.

The Company accounts for the post-contract support / provision for warranty on the basis of the information available with

the Management duly taking into account the current and past estimates.

1.25 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(i) Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation

as a result of past events and it is probable that there will be an outflow of resources.

(ii) Contingent Liabilities are not recognized but are disclosed in the notes in any of the following cases:-

(a) a brsent obligation arising from a past event, when it is not probable that an outflow of resources will be required

to settle the obligation; or

(b) a reliable estimate of the brsent obligation cannot be made; or

(c) a possible obligation, unless the probability of outflow of resource is remote.

(iii) Contingent Assets are neither recognized nor disclosed.

(iv) Contingent Liability is net of estimated provisions considering possible outflow on settlement.

(v) Contingent Assets, Contingent Liabilities and Provisions needed against Contingent Liabilities are reviewed at each

Balance Sheet date.

1.26 BORROWING COST

Borrowing costs in the ordinary course of business are recognized as an expense in the statement of profit and loss in which

they are incurred.

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset is capitalized

as part of the cost of the asset.

1.27 LEASES

The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at

inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or the

arrangement conveys a right to use the asset.

Finance leases, where substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the

inception of the lease at the fair value of the leased property or, if lower, at the brsent value of the minimum lease payments.

Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant

rate of interest on the remaining balance of the liability. Finance charges are reflected in the Statement of Profit & Loss.

Capitalized leased assets are debrciated over the shorter of the estimated useful life of the asset and the lease term, if there

is no reasonable certainty to obtain ownership by the end of the lease term.

Operating lease payments are recognized as an expense in the Statement of Profit & Loss on a straight line basis over the

lease term. 

1.10 EMPLOYEES BENEFITS

1.10.1 Defined Contribution

1.10.1.1 Provident Fund / Pension Scheme/Post Retiral Medical Schemes

Defined contributions towards provident fund, pension under EPFO, superannuation pension fund and post retiral medical schemes

are charged to the Statement of Profit & Loss based on contributions made in terms of applicable schemes on accrual basis.

1.10.2 Defined Benefits

1.10.2.1 Gratuity

The Company has set up a Gratuity Trust Fund which is being administered by Life Insurance Corporation of India (LIC). The

annual gratuity liability is determined based on actuarial valuation under Group Gratuity Scheme on the basis of information

provided of employees and their remuneration at the end of each year. The contribution paid / payable annually to cover

future liability for gratuity based on actuarial valuation is charged to the Statement of Profit & Loss.

1.10.2.2 Other Benefits

Defined Benefits provided by company to employees - Long Service Award, Leave Travel Concession, Leave Encashment

and Medical Leave (LHAP) are accounted for on actuarial valuation made at the end of year. The actuarial gain/loss is

recognized in the Statement of Profit & Loss of the year.

1.10.3 Ex-gratia payments on death are recognized on payment basis in the Statement of Profit & Loss.

1.10.4 Terminal Benefits to Contract Employees

Leave Encashment and Contract Completion Benefits are provided on accrual basis in the Statement of Profit & Loss. 

SIGNIFICANT ACCOUNTING POLICIES ON CONSOLIDATED FINANCIAL

STATEMENTSCOMPANY OVERVIEW

RITES Limited is one of India’s leading companies in transport infrastructure consultancy, engineering and project management

services, with operations in India and abroad. The Company is providing services in three distinct fields of business activities, viz (a)

consultancy in transport infrastructure (b) leasing, exports, maintenance and rehabilitation of rolling stock, railway equipments and

modernisation of railway workshops (c) Quality assurance, construction supervision and project management.

Besides the above activities, RITES Limited (“Holding Company”) along with its subsidiaries and joint venture entities (collectively

referred to as “the Group” and individually referred to as “Entity”) is also into the business of generating power from wind mills and

solar energy plants, power trading, manufacturing and rehabilitation of wagons and carrying out civil construction work. One of the

group entities also provides services relating to rehabilitation, operation and maintenance of railway systems under concession

agreement.

The financial statements of the Group, comprises of RITES Limited, the holding company, RITES (Afrika) (Pty) Ltd., (RAPL), in

Botswana, RITES Infrastructure Services Ltd. (RISL) in India are wholly owned subsidiaries, Railway Energy Management Company

Ltd. (REMCL), a subsidiary with 51% stake and proportionate share of company in joint venture entities in India viz. RICON (51%)

unincorporated body, SAIL-RITES Bengal Wagon Industry Pvt. Ltd. (SRBWIPL) (50%) (joint venture entity in India), Geoconsult

ZT GmbH – RITES (GC-RITES) (39.4%) and in abroad viz. Companhia Dos Caminhos De Ferro Da beira, Sa (CCFB) (26%), in

Mozambique.

Companhia Dos Caminhos De Ferro Da beira, Sa (CCFB), Mozambique has ceased to operate as a going concern as from 8th

December, 2011 and its financial statements have been brpared accordingly. RITES Mohawarean Arabia Company Ltd. (RMAC), a

subsidiary company with 76% stake, in Saudi Arabia is under liquidation & there is no significant transaction during the period, hence

its financial statements are not considered for consolidation. Investment in equity of ` 0.47 crore made by the holding company has

been returned by RMAC during the financial year 2014-15. Operations of RISL have also discontinued during the year, BOD has

decided the winding up after seeking approval of shareholders, handing over of Multi Functional Complexes (MFCs) and meeting

other obligations.