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Indian Railway Catering & Tourism Corporation Ltd.

BSE: 542830 Sector: Services
NSE: IRCTC ISIN Code: INE335Y01012
BSE 00:00 | 31 Mar 982.40 46.75






NSE 00:00 | 31 Mar 982.55 46.75






OPEN 982.40
52-Week high 1995.00
52-Week low 625.00
P/E 57.65
Mkt Cap.(Rs cr) 15,718
Buy Price 982.40
Buy Qty 39066.00
Sell Price 940.00
Sell Qty 7.00
OPEN 982.40
CLOSE 935.65
52-Week high 1995.00
52-Week low 625.00
P/E 57.65
Mkt Cap.(Rs cr) 15,718
Buy Price 982.40
Buy Qty 39066.00
Sell Price 940.00
Sell Qty 7.00

Indian Railway Catering & Tourism Corporation Ltd. (IRCTC) - Director Report

Company director report

Dear Shareholders

The Directors have pleasure in presenting the 20th Annual Report on theoperations and results of your Company together with the audited financial statementsAuditors' Report and review of financial statements by the Comptroller and Auditor Generalof India (CAG) for the financial year ended 31st March 2019. The detailedfinancial and operational performance of the Company is produced in the report.


The key highlights of the financial performance of the Company during F.Y. 2018-19along with the corresponding performance in F.Y. 2017-18 are mentioned below:

(Rs. in Crores)
Particulars F.Y. 2018-19 F.Y. 2017-18 % age Increase/ /Decrease)
Turnover 1868.23 1471.17 26.99
Total Income 1957.01 1544.75 26.69
Profit before tax 475.93 338.98 40.40
Provision for Tax 170.00 119.46 42.31
Profit after tax 305.93 219.52 39.36
Transferred to General Reserve 35.00 35.00 -
Dividend (including Interim dividend of Rs. 60 cr for 2018-19 and nil for 2017-18) 122.37 88.81 37.78
Reserves & Surplus 907.02 905.37 0.18
Net Worth 1067.02 945.37 12.87
Earnings Per Share (Rs.) 19.12 13.72 39.36

a. Capital Structure - Increase in Authorised and paid-up share capital

During 2018-19 the authorised share capital of the Company was increased to Rs. 250crores from Rs. 50 crores subsequent to approvals of shareholders and Ministry ofRailways.

The paid up share capital of the Company also increased to Rs. 160 crores from Rs. 40crores by way of issue of bonus shares in the ratio of 3:1 as detailed in the para below.As on 31st March 2019 the Authorised share capital and paid-up share capitalof the Company was Rs. 250 crores and Rs. 160 crores respectively. President of India(Government of India) through Ministry of Railways and its nominees hold the entire paidup share capital of the Company.

b. Bonus Issue:

The Board of Directors in its 97th meeting held on 28th February2019 recommended the proposal of issuance of fully paid bonus shares in the ratio of 3:1i.e. three equity shares for every one share by capitalisation of reserves amounting toRs. 120 crores subject to approval of shareholders and Ministry of Railways.

Subsequent to receipt of due approvals the Board of Directors allotted bonus shares tothe shareholders in the above-mentioned ratio in its 98th meeting held on 29thMarch 2019. As a result the paid up share capital of the Company increased from Rs. 40crores to Rs. 160 crores.

c. Dividend

As per the guidelines issued by Department of Investment and Public Asset Management(DIIPAM) dated 27th May 2016 the minimum dividend to be paid by CPSEs for theyear should be at least 5% of net worth or 30% of profit after tax whichever is higher.

Accordingly the Board of Directors (BoD) had declared an interim dividend of Rs. 60crore (Rs. 15/- per share) i.e. 150 % on the paid-up share capital of Rs. 40 crore. Thesaid interim dividend was paid to Government of India in January 2019. The paid-up sharecapital of the Company was increased to Rs. 160 crores from Rs. 40 crores in March 2019by way of allotment of bonus shares in ratio of 3:1. The BoD has recommended a finaldividend (in addition to interim dividend) of Rs. 62.37 crore (approx.) (Rs. 3.89/- pershare) i.e. 38.98 % on the paid-up share capital of Rs. 160 crore. With this the totaldividend for the year 2018-19 would sum up to Rs. 122.37 crore (approx.) which is 76.48 %of paid-up share capital 40% of the post-tax profits for 2018-19 and 11.47% of net worthas on 31st March 2019.

The Final Dividend would be paid to Ministry of Finance subject to approval of theShareholders in the ensuing Annual General Meeting.

d. Contribution to Revenue of Ministry of Railways

The Company also contributes by way of revenue share to Ministry of Railways (MoR) andthe total share of such contribution was Rs. 316.38 crores during the year as against Rs.188.15 crores during the previous year. Contribution to the revenue of (MoR) comprises ofHaulage Charges Concession fee License fee User Charges and Dividend.

e. Initial Public Offer/Listing of shares

In the Union Budget 2017 your Company's shares were announced to be listed on theStock Exchanges. Accordingly for the proposed initial public offering of equity shares ofthe Company DIPAM had appointed M/s. Crawford Bayley & Co. as Legal Advisors; IDBICapital Markets & Securities Limited SBI Capital Markets Limited and Yes SecuritiesLimited as Book Running Lead Managers; and; M/s Alankit Assignment Limited as Registrar toIssue. The procedural formalities for listing of shares have initiated again in June 2019and the Company is in process of filing of Draft Red Herring Prospectus with SEBI.

In view of upcoming IPO the Company has entered into agreement with both thedepositories NSDL and CDSL. The account of "President of India" has been openedinto dematerialized form and the procedure for opening the demat account of nomineeshareholders holding the shares for and on behalf of President of India is in process.


The segment wise operational performance of the Company during 2018-19 is detailedbelow:

a. Catering & Hospitality;

b. Travel &Tourism ;

c. Internet Ticketing;

d. Packaged Drinking Water (Rail Neer).


The Catering and Hospitality segment of IRCTC is segregated as produced below:

1. Railway catering

i. Mobile Catering

As on 31st March 2019 IRCTC managed on-board catering services in 19Rajdhanis 2 Tejas 1 Gatiman 1 Vande Bharat 22 Shatabdis 19 Durontos and 296Mail/Express trains. During 2018-19 Ministry of Railways introduced 1 Tejas 1 VandeBharat 1 Rajdhani and 13 Mail/express trains.

As per Catering Policy-2017 IRCTC would unbundle catering services by creating adistinction primarily between food preparation and food distribution. IRCTC shall besetting up new kitchens and upgrade existing ones to prepare the food under its ownsupervision. These kitchens would be provided with modern cooking devices and automatictray sealing packaging machines. The details of proposed new/upgraded kitchens are beingcovered under "Base Kitchens" mentioned at point (v).

ii. Train Side Vending (TSV)

IRCTC also manages Train side vending contracts on Mail/Express and Superfast trainshaving no pantry cars. As on 31st March 2019 there were more than 1600 trainson which sectional TSV contracts are to be awarded to the licensees.

Contracts for nearly 100 sections covering 1000 trains have been planned to be executedby March 2020.

iii. Pantry Car design and development

IRCTC is in the process of re-designing of pantry cars with modern equipments.Institute of Hotel Management (IHM) Pusa New Delhi was engaged to submit a design for thesame. Draft design has been submitted to Rail Coach Factory Kapurthala for consideration.The salient features of redesigned Pantry cars of Rajdhani and Duranto express (LHB rake)would include compact pantry cars with all modern equipments fully Ac LHB coach adequatestorage facility for dry and perishable items optimum cooking facilities like Combi OvenBrat Pans Deep fryer induction heaters etc. sufficient staff berths (24 nos.) properexhaust chimney appropriate garbage bins etc.

For 2019-20 IRCTC plans to rollout 10 new pantry cars once the design is approved byRailways.

iv. Static Catering

IRCTC managed 169 Refreshment rooms 57 Jan Ahaars and 27 Cell Kitchens as on 31stMarch 2019. These units are established on Railway platforms selling low budgeteatables. A list of items to be sold on these units alongwith the prices is provided byMinistry of Railways/IRCTC. These units usually sell items to the passengers on platformand also sometimes supply to the moving train.

v. Base Kitchens

As on 31st March 2019 IRCTC managed 11 Base Kitchens located at New DelhiHowrah Ahmedabad Patna Mumbai Central Mumbai CST Ballarshah Nagpur BalasoreSealdah and Kharagpur Junction. The Base Kitchens at New Delhi and Howrah are manageddepartmentally i.e by IRCTC itself however for other locations service providers havebeen engaged for operations. Third party food safety supervisors have been deployed atthese kitchens to test the food samples to standardise the procedure and to train thestaff. During 2018-19 30 base kitchens have been up-graded in view of Catering Policy2017.

With an aim to bring uniformity in passenger experience the Company introduced newtechnology to monitor the food production process in its base kitchens. The new systemcomprises a network of CCTV cameras installed at its Base Kitchens.

As per Catering Policy 2017 IRCTC has to set up modern Base Kitchens for production ofhygienic meals for transfer to trains. Accordingly 54 locations have been identified forsetting up green field and brown field base kitchens. Out of these 54 locations 36existing units (Refreshment Rooms Cell Kitchens Jan Ahaars) have been proposed to bedeveloped as kitchen units and 18 new kitchen units would be set up on the land to beprovided by Railways.

vi. Food Plazas/Fast Food Units/Food Courts

During the year the Company commissioned 16 Food Plazas and 49 Fast Food Unitsthereby managing 290 operational units as on 31st March 2019. The Companyalso awarded 20 FPs and 69 FFUs during 2018-19. The total earnings from FPs/FFUs for FY2018-19 have been approximately Rs. 64.30 crore in FY 2018-19. A strategy of attractingwell-known brands into this business has been initiated.

In FY2019-20 IRCTC plans to commission approximately 50 Food Plazas (FPs)/Fast FoodUnits(FFUs).

vii. E-Catering

At present the E-catering service of the Company is available at 325 stations. Thisservice can be availed by train passengers through the website - mobile App - Food ontrack which is available on both Android and iOs platforms along with telephone callson 1323. The average daily bookings under E-Catering for FY - 2018-19 stood at 11859meals.

The famous F&B brands like Domino's Haldirams Subway Sarvana Bhawan Adyar AnandBhawan etc have joined hands in this project.

The Company has taken steps to attract more F&B brands including reputed local andnational level brands. This is being done with a view to offer choice and optionsalongside other existing catering facilities.

To ensure transparency system generated invoices are issued to passengers against eachorder of e-catering which is first of its kind on Indian Railways. Delivery mechanism hasalso been managed on 9 major stations - New Delhi Jhansi Nagpur Itarsi BhopalLucknow Gwalior Kanpur and Pandit Deen Dayal Upadhayay. In addition SMS are sent topassengers before their journey inviting them to book food. For 2019-20 steps are beingtaken to include more specialties of regional cuisine and to reach the average number ofmeals booked to 20000 per day.

viii. Executive Lounges

As per the policy directives issued by Ministry of Railways IRCTC has been advised toinvest in the infrastructure to create Executive Lounges. Consequently 08 ExecutiveLounges at Visakhapatnam New Delhi Vijayawada Agra Cantt Jaipur Ahmedabad Madurai& Sealdah have been commissioned and 3 more stations viz. Varanasi Jn. HazaratNizamuddin & New Delhi (Paharganj side) are expected to be commissioned in FY 2019-20.

ix. Retiring Room

Ministry of Railways has mandated IRCTC to renovate operate and maintain RetiringRooms at Railway Stations. Accordingly IRCTC has floated Expression of Interest (EoI) forempanelment of reputed organisations to undertake the renovation work of retiring rooms atall A-1 & A category stations. IRCTC has awarded contracts for the work of renovationoperation and maintenance of the Retiring Rooms for 19 stations. Out of these RetiringRooms at Bilaspur Jaipur Kacheguda Madurai Tirupati Udupi and Vadodara have beencommissioned. For FY 2019-20 25 more Retiring Rooms shall be commissioned.

x. Budget Hotel

The Company is presently operating two Rail Yatri Niwas at Ginger Rail Yatri Niwas NewDelhi and Sampath Rail Yatri Niwas Howrah and two BNR Hotels from Puri and Ranchi.

During 2018-19 the Company started the construction of another Budget hotel atLucknow.

MOU Targets 2018-19 and Achievements thereof:

i. Pilot project "setting up a billing system for Food Plazas and Fast Food Unitsthrough data network linked to IRCTC Central server to enable revenue monitoring: Thepilot project was launched at Food Plaza Katpadi and two Fast Food Units at Ambur andJolarpet railway stations by linking their billing system with IRCTC's central server.The activity was successfully implemented on 31st December 2018.

ii. Implementation of trolleys in Non-SBD Rajdhani Shatabdi and Duranto trains: IRCTCawarded licensees of 32 Non-SBD Rajdhani Shatabdi and Duranto trains with a condition tohave trolleys on these trains in August 2018. As on 31.10.2018 all these trains wereusing trolleys for services to the passengers. Although some trolleys were laterdiscontinued due to objections from Zonal Railways in regard to safety issues as there isno parking space available especially in Rajdhani and Duranto trains.

iii. Conversion of existing aluminium casserole to baggasse based biodegradablepackaging in IRCTC managed non-SBD Rajdhani Shatabdi and Duranto trains: IRCTCawarded licensees of 32 Non-SBD Rajdhani Shatabdi and Duranto trains with the conditionthat licensees shall use baggasse based biodegradable packaging in place of aluminumcasserole on these trains in August 2018. Licensees started supply of meal in baggassebased biodegradable packaging in the month of September 2018 and are gradually replacingthe aluminum casseroles. The target of conversion to baggasse based biodegradablepackaging was achieved on 31st October 2018.

Quality Control Regime

(i) Customer Satisfaction Survey

In IRCTC quality of Food and Service is gauged by conducting Customer SatisfactionSurveys through third party professionals. The Company has empanelled 7 (seven) suchagencies for a period of 3 years. In FY 2018-19 362 trains and 263 FPs/FFUs were surveyedby a third party professional agency.

(ii) Food Safety Audits

Keeping in view the impact of food safety on public health food safety audits areconducted by IRCTC through third party agencies accredited by National Board forCertification Bodies (NABCB). During 2018-19 M/s TUV India (P) Ltd. conducted Food SafetyAudit of Food Plazas/FFUs and trains.

(iii) Complaint Monitoring and Redressal

In view of the quantum of complaints emanating from multiple sources IRCTC hasdeveloped Catering Complaint Management System (CCMS) which enables online redressal ofcomplaints (approx. 80-90%) on trains and at stations by the zones and corporate office.

(iv) Onboard Monitoring

IRCTC has deployed train-wise onboard supervisors to closely monitor catering services.Apart from monitoring the supervisors are also entrusted with the task of taking feedbackfrom passengers through online means to ensure better services.


India with its rich and diversified historical natural and cultural heritage is ahome to many attractive tourist destinations of the world. The country's geography andtopography has a tremendous potential to attract tourists across the globe.

With globalization and overall development happening in the country in terms ofinfrastructure and tourism facilities the foreign tourist arrivals in India has tripledfrom 3 million per year in 2003 to around 11 million in 2018 and analysts expect to seemore than 30 million tourists visiting India annually by 2028. At the same time domestictourist visits to all states and Union Territories have contributed to India's rapidlygrowing tourism sector which now plays a huge role in the nation's economy supportingtens of millions of jobs and generating billions of dollars each year.

The World Travel & Tourism Council in their latest report on "Travel &Tourism- Global Economic Impact & Trends 2019" has stated that the totalcontribution of travel & tourism to GDP was Rs17.33 lakhs crore (US $247 billion)which was 9.2% of the nation's GDP in 2018. It further forecasted that this contributionto GDP will rise to Rs. 35.94 lakhs crores (US $511.9 billion) in 2029 contributing 6.8%of the GDP.

The tourism Business of IRCTC during 2018-19 is broadly classified as below:

IRCTC in Tourism Business

IRCTC today has become one of the leading travel and tourism companies in the marketcatering to the needs of diverse tourist segments. With the strength of being a RailwayPSU IRCTC specialises in rail tourism and at present is the market leader in thissegment. Besides rail tourism IRCTC has also diversified into various other tourismbusinesses for increasing the market share in the immensely competitive tourism market.

The various tourism business segments of IRCTC include Luxury Train Tours Maharajas'Express Buddhist Circuit Special Train Bharat Darshan Special Tourist Trains Rail TourPackages International and Domestic Air Packages Land Tour Packages Hotel booking CarRental Customised and LTC tours and Event Management etc. IRCTC have its exclusivetourism portal for showcasing and booking of various tourismproducts in a single space.

The income from Travel & Tourism Business of IRCTC has observed an increase of36.27% from Rs. 189.36 crores in 2017-18 to Rs. 258.05 crores in 2018-19. The Income fromState Teerath Tourism Business of IRCTC has observed a decrease of 7.6% from Rs. 210.59crores in 2017-18 to Rs. 194.57 crores in 2018- 19.

1. Domestic Tourism

(i) Rail Tour packages -This is a comprehensive package of IRCTC where it offersan all inclusive packages even with confirmed onward and return rail journey apart fromother elements of a package such as road transfers accommodation meals and sight-seeingat reasonable rates. During the year a total of 9606 tourists availed these tours.

(ii) Holiday packages - IRCTC also operates Holiday Packages (Land Packages) whichincludes road transfers accommodation meals and sight-seeing. During 2018-19 a total of33725 passengers availed IRCTC tour packages.

(iii) Packages with charter coach and train - These are all inclusive packages likeRail Tour Packages where the train travel is arranged through chartered coaches or trainsby IRCTC. During 2018-19 IRCTC has operated 12 RTP with charter trains/ coaches and atotal of 610 passengers availed these services.

(iv) Customized tour package- IRCTCs flexibility in accommodating the demands ofthe customer is clearly demonstrated in customised tour packages. These packages aretailor-made as per the requirement of the tourists such as budget level of luxuryplaces of Interest etc. During the year a total of 6768 tourists availed these packages.

(v) Leave Travel Concession (LTCs):

Government of India has authorised IRCTC as one among three PSUs for operating LTCtours. IRCTC offers general and customised LTC packages to Government employees. Duringthe year IRCTC arranged LTC package services for 57 passengers.

(vi) Domestic Air packages

Air packages are increasingly becoming more popular day by day due to limited time atthe discretion of people for going on holidays. IRCTC operated packages from all the Zonesto various destinations like Shirdi Goa Delhi Tirupati Gangtok Darjeeling KalimpongAndaman & Nicobar Ladakh Srinagar Kashmir Mumbai Mysoor Coorg Bangalore andmore. During the year approximately 4527 passengers travelled in 270 domestic airpackage tours.

(vii) Educational Tours

IRCTC operates educational tours for students under its "travel to learn"scheme and has tie-ups with various State Governments as well as private schools foroperating educational tours for their students. During the year 2018-19 a total of309863 students (including 270091 students of Local Delhi tours) travelled underEducational tours.

2. Inbound Tourist Targeted Tours

a) Maharajas' Express

Maharajas' Express has created a brand image for IRCTC in the field of luxury tourismin the international arena. Launched in the year 2010 the Maharajas' Express has beenawarded as the World's leading Luxury Tourist Train consecutively from the year 2012 to2018 at the World Travel Awards. Maharajas' Express operates on four different itinerariesout of which three itineraries are of 7 Nights/ 8 Days and one of 3 Nights/ 4 Days whichcover places like Ajanta Udaipur Jodhpur Bikaner Jaipur Ranthambore Agra BalasinorGwalior Khajuraho Varanasi and Lucknow. The itineraries have been uploaded withdeparture dates on the website of the train .

During the year 2018-19 total of 1149 paid tourists availed the services ofMaharajas' Express in 32 trips as against 1040 (10% increase of PAX of FY 17-18 945 innos.) under MoU target of FY 2018-19.

b) Buddhist Circuit Special Train:

IRCTC operates "Buddhist Circuit Special Tourist Train" which completed 11years of operation in 2018. This is a fully air conditioned train offering a 7 Nights and8 Days package covering all major Buddhist Pilgrim locations in India and Lumbini inNepal. The niche tourism product is mostly patronised by international tourists across theglobe. In order to reduce road travel distance for Lumbani & Saravasti for ensuringmore comfort to the tourists IRCTC revised Railway halts at Gorakhpur and Gonda toNautanva & Balrampur respectively in FY 18-19. During the year IRCTC operated 8 tripsof Buddhist Circuit Special Trains. As a part of revamping the product and to generatemore business in the coming years a new modified tourist friendly LHB rake was introducedin December 2018. The new rake of Buddhist Circuit Train has International level featureslike two dining cars vacuum bio-toilets air suspension springs security lockersmodified 2AC coaches with side seating facility On-board housekeeping & securityCCTV camera security accidental insurance facility Foot massager & Mini library etc.The itineraries have been uploaded with departure dates on the website of the . During the year a total of 408 tourists travelled throughthis train as compared to 252 tourists in 2017-18.

c) Majestic Rajasthan Tourist Train:

IRCTC also planned its new product "The Majestic Rajasthan Tourist Train"which commenced its operation from September 2019. IRCTC has positioned the train tourpackage for the mid-segment domestic and international tourists. Initially two tourpackages of 4 Nights/5 Days will be offered covering the various princely cities ofRajasthan such as Jaisalmer Jodhpur Jaipur with an option to visit the world famous TajMahal. The itineraries have been uploaded with departure dates on the website of the .

3 Outbound Tour Packages

Realising the potential of the outbound tourist market in the country IRCTC hasstarted operating outbound tour packages to various tourist destinations across the world.During 2018-19 4164 tourists availed the outbound tour packages with revenue of Rs. 27.38cr. as compared to 3308 tourists in FY 2017-18 with revenue of Rs. 23.06 cr registeringan increase in revenue by 18.73% and therefore surpassing the MoU 2018-19 target of"Increase in revenue from International Air packages over previous year" by 15%(Excellent).

4. Air Ticketing And Corporate Travel

a) Online Air ticketing:

IRCTC's air-ticketing micro-site provides online booking facilityof Domestic as well as International Air-tickets at very competitive prices with thelowest facilitation charges as compared to other portals in Online Travel Agents (OTA)market.

Mobile app for air ticketing for Android and IOS users is also made available. IRCTChas initiated providing overseas accidental insurance coverage of Rs. 50 lacs to eachpassenger.

During FY 2018-19 an average of 4676 air tickets per day were booked through thiswebsite as compared to 3748 average air tickets in FY 2017-18 registering a growth of24.76% surpassing the MoU 2018-19 target of "Increase in Air Ticket booking overprevious year by 15%" (Excellent).

b) Corporate Travel Business:

IRCTC offers complete Travel services to Corporate which include air ticketingbooking of domestic as well as International hotels Visa facilitation Insurance andForex. IRCTC has tied-up with 64 PSUs/ Ministries/ Government institutions.

5. Mass Tourism

a) Bharat Darshan/ Aastha Circuit Tourist Train:

One of the most popular tourism products of IRCTC Bharat Darshan Tourist Trains arespecial tourist trains' tour packages offered by the company primarily targeting commonman. These trains operate from various cities across the length and breadth of the countryon various circuits covering various tourist destinations. Attractively priced at Rs.900/- per day per passenger for Non-AC Sleeper Class the tour package is inclusive ofrail and road travel all meals sightseeing and accommodation. Above all the touristsare also insured for an accidental claim upto a sum assured of Rs. 10 lakhs. During FY2018- 19 IRCTC operated 99 trips of Bharat Darshan Tourist Trains as against 85 trips ofBharat Darshan/Aastha Circuit Tourist Train in FY 2017- 18 registering an increase of16.5%. With this achievement IRCTC has surpassed the MoU 2018-19 target of "Increasein number of trips of Bharat Darshan and Aastha trains" by 15% (Excellent).

b) State Special trains

IRCTC runs these special tourist train tours in collaboration with various stategovernments. The government selects the beneficiaries of the tour packages who are mostlysenior citizens. These train tours cover various destinations of tourist and pilgrimimportance across India. During FY 2018-19 IRCTC tied up with state governments of MadhyaPradesh Chhattisgarh Rajasthan and Jharkhand and operated the State Special trains forthem. During the year a total of 150753 tourists availed these tours in 170 trips.

c) Election Special Trains:

IRCTC has been entrusted with the job of moving the on duty Military and Para-Militaryforces for the general and assembly elections since FY 2013-14. IRCTC has been nominatedas Single window for booking and movement of Election Special Trains. During FY 2018- 19IRCTC operated 248 trains for moving Para- military forces for assembly elections in thestate of Madhya Pradesh Rajasthan Chhattisgarh and Karnataka.

d) AC Tourist Train:

Utilizing the conventional rake of the Buddhist Special Tourist Train IRCTC operatedthe AC Tourist Train tour packages in FY 2018-19. The first trip of the AC Tourist Trainwas operated from Kochiveli (KCVL). During the FY 2018-19 IRCTC operated four AC TouristTrain tours for a total of 665 passengers.

e) Theme Based Tourist trains

i) Ramayana Express:

IRCTC launched and operated four special tourist trains covering places of Lord Ramawhich is named as "Ramayana Express". One train was operated from Madurai inTamil Nadu two were operated from New Delhi and the fourth one operated from Rajkot. Thedestinations covered are Ayodhya (U.P.) Nandigram Sitamarhi Janakpur Varanasi PrayagShringverpur Chitrakoot Nasik Hampi and Rameshwaram etc. A slip tour to Srilanka byflight to Colombo from Chennai was also offered to passengers on additional charges. TheSri Lankan leg of this ebullient package also included visit to renowned places like AshokVatika (Hakkagala Botanical Garden) and temples of the ancient time including MunneshwariMunnawaram Hanuman Temple Kaleniya Vibhisana temple & palace Tea gardens andElephant Orphanage. These train were operated as all inclusive tour packages and providedservice to 1884 passengers.

ii) Unity Express:

On the inauguration ceremony of statue of Sardar Vallabh Bhai Patel (Statue of Unity)Railways through IRCTC ran a special tourist train named "Unity Express". Thepackage offered was all inclusive tour package ex- Rajkot cover places like RameshwaramMadurai Kanyakumari Trivandrum Tirupathi Shirdi and Shani Singnapur. The train hasprovided services to 498 passengers.

iii) Samanta Express:

In memory of Dr. Bhimrao Ramji Ambedkar "Samanta Express Tourist Train"operated ex- Mumbai covering all the prominent places associated with his life and LordBuddha. It is one of the most affordable all inclusive tour package coveringChaityabhoomi (Mumbai) Mhow (Indore) Bodhgaya (Gaya) Sarnath (Varanasi) Lumbini(Nautanwa) Kushinagar (Gorakhpur) Deekshabhoomi (Nagpur). 553 tourists availed the tourduring the year.

iv) Ram Sethu Express:

This is another unique tour package offered by IRCTC covering the temples situated inthe state of Tamil Nadu. The package in the name of "Ram Sethu Express -Tamil NaduTemple Tour" operated ex-Chennai (Tambaram Railway Station). This maiden temple tourprovided an exclusive opportunity to witness rich architecture and history of 18 templesof Tamil Nadu. The package has provided services to 228 numbers of passengers.

6. Other Tourism Activities

a) Event Management:

IRCTC has ventured into Event Management business and has organised variousConferences Events and Incentive packages for Indian Railways PSUs and otherinstitutions. During FY 2018-19 IRCTC has conducted and managed nine events.

Realising the potential of event management as a business segment IRCTC plans toposition itself as a full-fledged event management company and offer its event relatedservices for organising events (Meetings Incentive tours Conferences and Expositions -MICE) to Ministry of Railways its PSUs and other government and private organizationsacross the country.

b) Booking of Charter Trains and Coaches:

IRCTC has operated 700 (142 trains & 558 coaches) charters in the financial year2018-19 for various tourist groups. IRCTC has been nominated as Single Window agency forbooking of FTR Train/ Coaches across India and a new online module has been developed andlaunched on 18.05.2018. Next phase of online charter booking is under development withvarious facilities for customers/ users. The website for online booking of FTR Trains/coaches is

c) Air Charter Business:

IRCTC has ventured into a new business segment of Air Charter. On the pilot run basisIRCTC has provided service to Ministry of Railways and operated four Air charters duringthe FY 2018- 19. Initially the business will be restricted to the Government clients andlater extended after stabilising in the market.

d) Hill and Heritage Charters

IRCTC actively promotes five Hill Railways of India viz. Nilgiri Mountain Railway(NMR) Darjeeling Himalayan Railway (DHR) Kalka-Shimla Railway Kangra Valley Railway andMatheran Railway. IRCTC operates hill charters over Kalka-Shimla Nilgiri Mountain Railwayand Darjeeling Himalayan Railways. IRCTC has recently launched packages for Kalakundwhich is situated in the recently introduced Heritage section of Patalpani- Kalakund underRatlam Division of Indian Railways.

e) Luxurious Railway Saloon Car

Ministry of Railways decided to open the bookings of its fleet of luxurious salooncoaches to open market and has entrusted IRCTC with the task of marketing and booking ofthese special rail products. A Saloon Car generally has a living room two air-conditionedbedrooms - one twin bedroom and the other similar to AC First Class coupe with attachedbaths dining area and a kitchen. Optional services like attendant catering pick anddrop is arranged as per demand of tourists. During FY 2018- 19 IRCTC has empanelledback-end service provider for providing package service to passengers. Indian Railwayshave allocated 2 Fully AC and 5 partial AC Saloon Cars out of them only 2 Fully AC arefeasible and operational for IRCTC. In FY 2018- 19 IRCTC has operated 20 Saloon Carssuccessfully. IRCTC has requested Railways to provide 5 exclusive fully AC Saloon Cars foroperating charters and Saloon Car tours across its all five Zonal Offices.

f) Online booking of Retiring Rooms at Stations and Hotel Booking:

Railway passengers having confirmed PNR can now do online booking of retiring roomsacross 498 Railway stations through IRCTC's tourism portal. IRCTC also provides thefacility of online booking of IRCTC hotels and Executive Lounges on its Tourism portal.IRCTC tied up with various reputed online Hotel consolidators for offering online hotelbooking to customers.

g) Glass Top Coaches:

IRCTC executed the project of Vista Dome Glass Top coaches with the help of Ministry ofTourism during this financial year.

h) IRCTC Mobile Apps:

IRCTC's launched user friendly travel and tourism mobile Apps 'IRCTC Air' and'IRCTC Tourism' on 31st May 2016. The application for IRCTC App is already availablefor Android and iOS users. An integrated IRCTC app featuring Rail and Air ticketing andIRCTC's Tourism has been released on 10.01.2017 named as "Rail Connect". Till31st March 2019 more than 1 crore downloads of IRCTC Rail connect app has taken place andregular packages are being booked regularly on the app. A Mobile App has been developed onAndroid as well as iOS for Maharajas' Express to simplify the recording of guestfeedback system and promotion of off-board excursions. App also has the feature ofdetailed itinerary live tracking of train etc.

i) Tourism Portal :

In the era of modern technology where internet websites and apps are ruling the worldIRCTC has realised the potential of growing as an Online Travel Agency. IRCTC's tourismportal offers complete online travel solutions to the customers. Theportal "Indian e-retail award" for consecutive four years from 2015 to 2018 byFranchise India.

The portal offers on-line booking of Tourist Trains Air tickets Tour packages be itthrough rail air or land Hotel Saloon Cars AC Tourist Trains Event Management etc.To be at par with the user friendliness and facilities which other OTAs offer IRCTC hasrevamped its tourism website.

New tourism products such as Kalakund- Patalpani packages online hotel booking microwebsite link to e- ticketing Panch Takht Express Ramayana Yatra Trains SamanathaExpress Unity Express trains Temple Ram Sethu Express New rake of Buddhist Circuittrain etc. are also being added for booking by the customers in the upcoming new versionof the portal.

The extremely diversified tourism product lines provides IRCTC tremendous scope ofgrowth in the field of tourism. In line with this the company plans to further enhanceand consolidate tourism business in the coming years by expanding and streamliningexisting business lines as well as introducing new product lines. Specific thrust areaswould be:-

1. Cruise Packages: IRCTC will focus on launching packages with Cruise liners formajor cruise packages across Globe. IRCTC will block seats/ rooms in Cruises and sell themat Domestic & International level.

2. River Cruise Packages: IRCTC also is going to tie up with reputed Companies inIndia offering Luxury River Cruise Tours. These tours will be offered to its guests ofMaharajas Express in the first phase. The first Cruise package for June 2019 is launchedon December 2018.

3. Cargo Business: IRCTC will indulge itself in logistics and supply chainmanagement by venturing into Cargo Business. IRCTC will also increase business profile outof Rail- based tourism product line. IRCTC has tied-up with M/s Sky Touch Aviation Pvt.Ltd. for Cargo Business.

4. AC Tourist Trains: IRCTC will utilise the conventional rake of Buddhist foroperation of more AC Tourist Trains and launch and operate various tourist itinerariesacross India.

5. FOREX VISA & International Travel Insurance: IRCTC will be starting thesebusinesses mainly targeting the IRCTC outbound tour package clients and also for theCorporate clients.

6. Adventure Tourism: IRCTC is planning to launch & operate Adventure Tourpackages. First of its kind of Biking tours to Meghalaya from Bangalore and second will befrom Delhi will be operated in future. IRCTC planning to launch & operated Adventuretours like Biking hiking & mountaineering tours etc.


IRCTC's e-ticketing service has continued to go from strength to strength ever since itcame into the market and accounted for 70% of reserved tickets in 2018-19 on IndianRailways booked online. On an average more than 7.78 lakh tickets were sold daily throughIRCTC's website during 2018-19. The site offers round the clock ticket booking servicesexcept for 35 minutes from 2345 hrs to 0020 hrs.

Service Charge:

A nominal service charge earlier levied by IRCTC @ Rs. 20/- per e-ticket for Non-ACclasses and @ Rs. 40/-per e-ticket for AC classes was withdrawn by Ministry of Railwaysw.e.f. 23rd November 2016 to promote digital payment and it continues to bewithdrawn till date.

The withdrawal of service charge has resulted in a loss of Rs. 804 crores during2018-19 in turnover of IRCTC. Total Revenue loss in e-ticketing service charge from thedate of its withdrawal from 23.11.2016 to 31.03.2019 is Rs. 1718 Crores. For the FY2018-19 reimbursement of Rs. 88 Crores has been made by Ministry of Railways to IRCTC forthe maintenance and operations of Internet Ticketing System.

The withdrawal of service charge on the tickets though has reduced the income fromthis segment efforts are being made to encash full potential of website along with mobileapplication schemes through data monetization retail management etc.


a. No. of E-Tickets and Passengers Booked:

A total of 2841 lac tickets were booked in 2018-19 as compared to 2466 lacs in 2017-18.Total 4949 lac passengers were booked as compared to 4340 lac passengers in 2017-18. Theratio of Passenger to Ticket during the year was 1.74:1.

b. E-ticketing Revenue Collection:

During the year 2018-19 a total of Rs. 32069 crores were collected as Ticket Farefrom the users under E- ticketing revenue which is 12.62% more than the last year'scollection of Rs. 28475 crores

MOU Targets 2018-19 and Achievements thereof

S.No Target Status of Achievement
1 Automated top-up of Rolling Deposit Scheme (RDS) Process in e-Ticketing by 30.09.2018 Achieved on 30.06.2018
2 Launch of IRCTC own Payment Aggregator platform by 31.12.2018 Achieved on 17.10.2018

New Initiatives Taken During 2018-19

• New User Interface for e-Ticketing website was launched on 14-Jun-2018.

• Waitlist ticket confirmation prediction facility to Users. (w.e.f. 15-Jun-18)

• E-ticket booking facility for Visually Impaired and Differently Abled users onMobile App.

• Facility of Book Now Pay Later (after 15 days) on website.

• ‘Talk Back' feature included to assist visually Impaired to book e-tickets.(w.e.f.26-Oct-2018).

• Zero Transaction Charge on Debit Card for e-ticket booking.

• E-ticketing Service to Paramilitary Forces is being facilitated to allCentral Paramilitary Forces to eliminate exchange of warrants between Railways and MHA.

• National Security Guards (NSG) E-ticketing Service (launched on04-Jul-2018).

• Central Reserve Police Force (CRPF) E-ticketing Service (Launched on11-Jul-2018).

Push Notifications- User engagement and retention tool that leverages Weband App to push notifications as a communication channel utilising the IRCTC user base wasintroduced during the year.

• ASK Disha (Chat Bot): An Innovative solution based on ArtificialIntelligence & Machine Learning to provide quick response to IRCTC users was launchedon 11-Oct-2018. It helps the website and mobile app visitors by answering their queriesinstantly without any time lag and to improve customer satisfaction and help businesscreate competitive advantage drive new business opportunities and foster innovation.

• iPay: iPay IRCTC's own payment gateway platform is being conceptualised andpresently opened on pilot basis to understand and evaluate the possible businessopportunity for in house transactions. After completion of pilot and evaluatingoperational utility and technical strength in the industry viz a viz available businessopportunities the product iPay could be taken to other market segments.

• Booking of Online Darshan Passes for Shirdi with Rail e-Ticket was startedon IRCTC e-ticketing website w.e.f. 23.01.2019.

• Train Vacant Seat Chart Module has been provided to users to view completeinformation of vacant booked and partially booked berths in a train reservation chartw.e.f. 27-Feb-2019.

Highlights of Internet Ticketing (2018-19)

• Total number of tickets booked were 2841 Lakhs 15.21% higher than last year.

• Total Train Ticket Fare for online e-ticketing during the year was Rs. 32069crores 12.62% higher than last year.

• Mobile App (on Android) Downloads till 31st March 2019 were 3.15crores downloads.

• Mobile Bookings: The average Mobile App bookings during 2018-19 were 2.79 Lakhtickets per day as compared to 1.32 Lakh tickets in 2017-18.

• About 20% of the total e-tickets were booked through agents (Web Services Model)in 2018-19.

• Optional Travel Insurance facility on Payment of premium started w.e.f.01.09.2018. Prior to that insurance was free to Rail Passengers. During the year 35 crorepassengers availed travel insurance facility.


As on 31.03.2019 IRCTC has seven operational plants located at Delhi Patna PalurAmbernath Amethi Parassala and Bilaspur out of which the plants at Amethi and Parasaalaare under PPP mode.

Performance of Rail Neer Plants during FY 2018-19 as compared with 2017-18 is givenbelow:

Financial Year Production (bottles in Crore) Turnover (Rs. in Crore) Plant Utlisation (%)
2018-19 21.50 188.00 83%
2017-18 20.20 175.00 82%

Quality: Rail Neer Plant at Danapur Nangloi Palur and Ambernath are accreditedwith ISO: 9001- 2008 quality management system certification and Rail Neer PlantAmbernath is accredited with 22000:2015 certification.

The result of the tests carried out by accredited laboratories on Rail Neer PackagedDrinking Water indicates that the quality of Rail Neer conforms to European EconomicCommunity (EEC) norms for pesticide residue.

During 2018-19 four plants at Hapur Sanand Nagpur and Bhopal were set up byachieving the MoU target 2018-19 under "Excellent" category.

Technology/Capacity up gradation:

• To combat design duplication and consequent sales of spurious water a hologramwas embedded on the Rail Neer bottle as a safety feature.

• Use of Handheld Terminals (HHT) for monitoring Rail Neer distributionoperations.

• Rail Neer Carrying and Forwarding Agencies (CFAs) have been empowered to issueinvoice through Handheld Terminals (HHTs) to licensees enabling live record andreconciliation of sale and supply of stock to trains and catering units in one plant aspilot project. This has simplified the process of bill settlement rendered it accurateand in real time. It has also resulted in savings in stationary and time forreconciliation. Further it is proposed to populate IRCTC's server with the above dataonline rendering it to become decision making tool to assess performance of Railneeroperations.

Road Ahead :

Average daily requirement of Packaged Drinking Water overIndian Railways is approx 18 lakh bottles/day. IRCTC's average production capacity is 6.8lakh bottles/day over seven working plants. With the commissioning of ten more plantscapacity will be enhanced to average 14 lakh bottles per day which will be operational by2020-21 covering 85% of Indian Railways demand.

The newly set up plants at Hapur Sanand Nagpur andBhopal have started commercial operation. Commercial operation of Nagpur Plant is likelyto start soon.

Three more plants at Jagi Road Sankrail & Jabalpurare in advanced stage of completion and expected to start production by October 2019.

Further three more plants at Bhusawal Una &Vijayawada are under construction and will be commissioned during 2019-20.

IRCTC entered into an agreement with NTPC for setting upRail Neer plant at Simhadri NTPC Power plant premises in which source treated water shallbe provided by NTPC. NTPC has developed a Fuel Gas based Sea Water (FGSW) desalinationsystem through which distilled water is produced and made fit for filling in the bottleafter mineralization and ozonation. This plant is environment friendly as raw water is notextracted from ground.

Technology/Capacity up gradation:

Water Vending Machines

Ministry of Railways has directed IRCTC to provide purified chilled and potabledrinking water to railway passengers at an affordable rate (@ Rs. 5/- per 1 litre) throughWater Vending Machines (WVMs) thereby reducing pollution on account of lesserconsumption of plastic bottles and generating employment.

Till 31st March 2019 your Company has cumulatively installed 1956 WaterVending Machines. Out of 1194 stations of category of A1 A B and C a total of 619stations have been provided with WVMs covering around 97% of A-1 category stations.


Human Resource Development is the strategic approach to the effective management ofpeople in a company such that they help their business gain a competitive advantage. AtIRCTC the purpose of human resources (HR) is to ensure that the organization is able toachieve success through people with focus on implementing policies and processes. This isdone through training programs performance evaluations and reward programs.

As on 31st March 2019 the Company had a total manpower strength of 2250employees with the following details:

Category No. of Employees
Regular Employees 1395
Deputationists 50
On Contract/ZTO 64
Consultants 51
Out Sourced 657
Apprentice 33

The percentage of women employees SC/ST/OBC employees persons with disabilities andex-servicemen out of regular employees of the Company is mentioned below:

Category No. of Employees % of total no. of regular employees
Women employees 131 5.8
SC Personnel 271 12.85
ST Personnel 73 3.47
Other Backward Classes 341 16.14
Persons with Disabilities 05 0.24
Ex-Serviceman NIL

Government of India has issued a policy on reservation from time to time providing forcertain percentages of reservation on direct recruitment as well as promotion in specifiedposts for reservation of SCs and STs. IRCTC being a CPSE strictly complies withreservation policies through maintenance of Post Based Roaster System as prescribed by theGovernment.

MoU targets 2018-19 and achievements thereof:

S.No Target Status of Achievement
1 Engagement of Apprentices for compliance of guidelines issued by DPE vide OM dated 17.05.2018 regarding Implementation of the Apprentices Act 1961 within a band of 2.5% to 10% of the total strength of employees. Achieved 33 Apprentices has been engaged i.e. 2.5% of the total strength of employees.
2 Regular updation of Online Human Resource Management System(HRMS) Achieved Online Human Resource Management System (HRMS) has been updated on 30th November 2018.
3 Implementation of decision of the Board on recommendations of HR Audit. HR Audit was done by an external independent firm M/s Simply HR and its recommendations were put up to Board of Directors on 20th December 2018.

Employee Welfare:

Realising the significance of Human Resources of the organisation HR Deptt. tookfollowing welfare measures during 2018-19:

Comprehensive Group Insurance Scheme: The Scheme has been introduced forall employees including deputationists by including natural death also in addition toearlier covered accidental death with coverage amount being 60 months of basic pay.

• Medical Insurance Scheme: All the contractual staff and staff engagedthrough outsourced agency have been extended the benefit of medical insurance for self andfamily. Under the scheme staff with coverage under ESIC will be reimbursed Rs. 400/-p.mand others would be reimbursed Rs. 800/-p.m.

Contributory Welfare Scheme: To extend financial help to the families ofemployee(s) in case of untimely/sudden death IRCTC contributory welfare scheme has beenlaunched by creation through voluntary contribution of Rs. 50/- p.m by all the employees.

Post Retirement Medical Scheme: In pursuance to DPE Guidelines PRMSScheme has been approved by Ministry of Railways in October 2018 for the benefit ofretiring employees who completes 15 years of service.

• Fast Track Promotion Policy: Limited Departmental Competitive Examination(LDCE) against Direct Recruitment quota vacancies has been introduced at the level of DGM(E4)AM (E2)and Executive (E0) for giving accelerated promotion to deserving and talentedemployees. LDCE has also been conducted for the post of W6 and W5 categories benefiting350 workmen under this policy.

Industrial Relations

During the year the Industrial Relations in the Company have been cordial and noman-days were lost. An effective work culture has been established in the Company throughempowerment transparency decentralization and practice of participative management.

Particulars of Employees

As per provisions of section 197(12) of the Companies Act 2013 read with the Rule 5(2)and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 every Company is required to give a statement showing the names and otherparticulars of the employees drawing remuneration in excess of the limits set out in thesaid rules in the Annual Report of the Company.

However as per notification dated June 05 2015 issued by the Ministry of CorporateAffairs Government of India government companies are exempted from complying withprovisions of section 197 of the Companies Act 2013.

Your Company is a government company therefore such particulars have not beenincluded as part of the Directors' Report.


During the year following initiatives were taken under Information Technology:

• All official data of the organization was maintained electronically in a secureenvironment with user's access rights control.

• Field officers were provided tablets for capturing data through mobile apps forInspections in trains and taking feedback of the passengers. A dashboard is also providedfor higher management to review & take necessary action & corrective measures forimproving services

• Around 25 kitchens were equipped with CCTV cameras for regular monitoring of theoperations and also linked with Honorable MR's dashboard "Rail drishti"

• Artificial Intelligence based CCTV cameras were installed in around 16 kitchensfor monitoring the kitchen's operational work & detecting identified anomalies forbetterment in the services. A Control room is being setup to monitor all these locationsthrough large format displays (LFD).


The vigilance wing in IRCTC is a key department which acts as direct link between CVCrailway board vigilance and the organization. It has been entrusted with theresponsibilities of mandate to carry on various surprise checks and scrutinizerecords/documents of various other departments from time to time for timely detection ofmalpractices corruption and unwarranted/unlawful business conduct in the organization. Itcoordinates with the IRCTC management and Railway Board vigilance in dealing matters ofvigilance administration policy and disciplinary proceedings against erring officials.IRCTC vigilance wing is headed by full time CVO assisted by Deputy CVO 3 VigilanceOfficers and 2 vigilance inspectors in the corporate office. There are further 5 vigilanceofficers in various zones handling vigilance related matter in the field. CVO being theextended arm of CVC is deeply engaged in furthering culture of transparency fairprocedures good business conduct and raising vigilance awareness in the organization. Thefocus area of vigilance department is to promote work culture for preventive vigilance andmonitoring and surveillance. This is to ensure fair systems and procedures in placethereby increasing transparency and reducing scope for discretion.

During the period 2018-19 the vigilance department investigated in detail 39complaints and conducted 128 preventive/surprise checks in catering and e ticketingsector. Nearly 201 e-mail complaints from various sources were also processed. Themalpractices and incidents of corruption so detected were communicated to the concerneddepartment for strict action against the licensees and erring employees. The resultingfine recovered was to the tune of Rs. 51929747. Further on recommendation of vigilancedepartment system improvements were implemented by various departments to minimiseinstances of malpractices especially in the procurement catering and e ticketing sector.As mandated by CVC guidelines the CMD undertook periodical review of activities andperformance of vigilance department with the CVO. The pending cases of complaints anddisciplinary proceedings were identified and expedited on priority. Further vigilancedepartment has recommended major penalty against one employee minor penalty against twoemployees and administrative action against six employees in other cases. A review meetingwith all vigilance officers in the zone was chaired by the CVO in corporate office on 28thMarch 2019. As part of system improvement vigilance department suggested/advised forconcrete & stringent penal policy for deficiency in services undertaking due safety/environmental measures and stock reconciliation in Railneer plants ensuring compliance ofsecurity features in e-tendering process.

The Vigilance Awareness week was organized from 29th October 2018 to 03rdNovember2018. The theme of this year is "Eradicate Corruption- Build A New India" withemphasis on preventive Vigilance by increasing transparency accountability followingrule of law being inclusive effective and efficient in all areas of functioning of theGovernment and its organizations. A Vigilance publication containing articlescirculars/letters of CVC/Board/IRCTC etc was released by Director/CS in the CorporateOffice New Delhi. Banners and posters with appealing messages were displayed prominentlyin work places Catering Units Trains etc. Various competitions like Essay writingPoster making Debate Quiz were held at Corporate Zonal and regional offices of IRCTC.Sensitize program/ Workshop/ Seminars were organized for the staff to make them aware ofthe various rules/regulations which are required to be followed during day to day working.In order to create more awareness and participation of the public at large the Commissionhad envisaged a concept of "Integrity Pledge. During the week Internet TicketingCentre of IRCTC sent about 1.08 crore e-mails to the IRCTC e-ticket users informing themabout observance of Vigilance Awareness Week Do's and Don'ts of the e-ticketingprocedure booking of meal orders through e-catering to prevent cases ofcheating/corruption and taking of e-pledge on CVC website.

Integrity Pact

IRCTC has implemented the integrity pact program in line with the recommendations ofCentral Vigilance Commission with an objective to ensure that all activities andtransactions between a Company or Government departments and their Suppliers are handledin a fair transparent and corruption free manner. The adoption of Integrity Pact by IRCTChas helped in establishing healthy business practices. To ensure transparency and healthycompetitiveness in public procurements/contracts IRCTC has adopted Integrity Pact. OneIndependent External monitor has been appointed in IRCTC with the approval of CVC. Acoordinator has also been appointed for Integrity Pact which is now being used in all thetenders which are beyond the identified threshold values.


Disclosure regarding establishment of vigil mechanism is included under the CorporateGovernance Report at Appendix-"B".


IRCTC firmly believes that Corporate Social Responsibility (CSR) plays a major role inthe development of any country and therefore it has made CSR an integral part of itsethos and culture. Your Company goes beyond the statutory compliances and makes efforts tocontribute to the economic development while improving the quality of life of the localcommunity around the company's work centers and the society at large. In a view toachieve this goal your Company has incurred an expenditure of Rs. 6.88 cr(2% of theaverage net profits of the preceding three years) on CSR projects/activities in FY2018-19.

Annual Report on CSR activities as required under Rule 8 of the Companies (CorporateSocial Responsibility Policy) Rules 2014 read with section 134(3) and 135(2) of theCompanies Act 2013 is placed at Appendix-"C".


8.1 Right to Information Act 2005

The Right to Information Act 2005 seeks to provide for setting out the practicalregime of right to information for citizens to secure access to information under thecontrol of public authorities in order to promote transparency and accountability in theworking of every public authority. To deal with RTI applications in a fast track modeIRCTC generates one Unique Registration No. (URN) for each application and the same isreplied by the concerned CPIO/PIO well within the prescribed time limit. In corporateoffice and zonal offices PIOs and Appellate Authorities have been nominated as per theprovisions of RTI Act 2005. The list of CPIO/PIOs Appellate Authorities is available onthe IRCTC website i.e. . IRCTC has been aligned to online RTI MIS portalw.e.f. 01.04.2017 and all the applications received online are disposed off through onlineRTI Portal which results in faster disposal of RTI cases.

During 2018-19 a total of 2056 cases under RTI Act 2005 were received and all theapplications were disposed off in timely manner.

Particulars No. of applications received as transfer from other PAs u/s 6(3) Received during the year [including cases transferred to other PAs] No. of cases transferred to other PAs u/s 6(3) Decisions where requests/ appeals rejected Decisions where requests/ appeals replied
Requests 107 2024 384 28 1587
First Appeals 0 167 2 0 165

8.2 Presidential Directives

During the year the Company did not receive any Presidential Directive.

8.3 Rajbhasha (Official Language)

The Company continued its thrust on the Official language implementation as per theGovt. of India's Rajbhasha Policy. Several steps are taken to increase the use ofRajbhasha in the Company and the Company has proved its commitment to ensure theimplementation of the Rajbhasha Policy. Various activities were undertaken during the yearlike organizing workshops training meetings various competitions etc. For outstandingand note worthy contribution in Rajbhasha number of incentives and reward schemes areinforce.

A Hindi week was organized from 14th September 2018 to 20thSeptember 2018 in the corporate office in which various competitions such as Hindi QuizHindi dictation Hindi Essay Hindi noting and drafting and Hindi Typing competition wereorganized in which large number of participants took part. Winners were awarded with Cashawards along with a Certificate. On 15th June 2018 2nd SubCommittee of Committee of Parliament on Official Language inspected the corporate office.The Committee expressed its satisfaction with usage of Official Language in the office.

8.4 Disclosure Requirement under Sexual Harassment of Women at Work Place Act(Prevention Prohibition and Redressal Act) 2013

The provisions of the Sexual Harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013 and the rules thereon are being strictly complied with. TheCompany is committed for the prevention of sexual harassment of women at workplace andtakes prompt action in the event of reporting of such incidents. In accordance with theAct to provide protection against sexual harassment of women at workplace and to maintaintheir safety IRCTC has nominated the Internal Complaints Committee(s) with thecomposition as required under the Act at Corporate Office as well as Zonal offices of thecompany.

During the year the Company received one complaint of sexual harassment which hasbeen disposed off.

8.5 Procurement from Micro and Small Enterprises (MSEs)

As prescribed under Procurement Policy for Micro and Small Enterprises (MSEs) Order2012 mandatory procurement of a minimum of 20% of the total procurement from MSE's firmsand at least 4% out of 20% from SC/ST firms is required. During FY19 the Company was ableto carry out a total of 13.55% of procurement from MSE firms.

The Company will make all out efforts to achieve the targeted purchase of 25% from MSEswith minimum 4 % from SC/ST MSEs and minimum 3% from women owned MSEs out of 25%procurement from MSEs in 2019-20.


9.1 Deposits

The Company has not accepted or invited any deposits from the public under Chapter V ofthe Companies Act 2013 read with Companies (Acceptance of Deposit) Rules 2014 during theyear under review. Therefore the information required to be reported under Rule 8 (5) (v)of Companies (Accounts) Rules 2014 is NIL.

9.2 Particulars of Loans & Guarantees Given Investments Made and SecuritiesProvided

During the year the Company has not provided any loan made any investment; orprovided any guarantee under section 186 of Companies Act 2013 read with Companies(Meetings of Board and its Powers) Rules 2014. Therefore the information to be reportedunder section 186 of the Companies Act 2013 is NIL.

9.3 Contracts And Arrangements With Related Parties

The Company did not enter into any contract/arrangement/transaction with relatedparties under section 188 of the Companies Act 2013 read with Companies (Meetings ofBoard and its Powers) Rules 2014 during the year under review and therefore there is 'Nil'information required to be reported under Form AOC-2 prescribed under clause (h) ofsub-section (3) of Section 134 of the Companies Act 2013 and Rule 8 of Companies(Accounts) Rules 2014.

9.4 Internal Financial Control System

The Company has in place an internal control system which commensurate with size scaleand complexity of its operations. Internal audit constitutes an important element inoverall internal control systems of the company. The scope of work of the internal auditis well defined and is very exhaustive to cover all crucial functions and businesses ofthe company. The internal audit in the company is carried out by the independentprofessional firms appointed for this purpose. In addition to Internal Audit M/s UCC&Associates LLP Chartered Accountants were engaged for the work of certification ofinternal financial control (IFC) for the F.Y.2018-19 in accordance with the provisions ofCompanies Act 2013. Details of the internal control system are provided in the ManagementDiscussion andAnalysis Report given at Appendix-"A".

9.5 Risk Management

The Company has formed a Board Level Risk Management Committee and the details of thecomposition meeting held and terms of reference are included under the Report ofCorporate Governance.

The Company also has a below Board level Committee constituted of GGM level officersincluding GGM Security as Chief Risk Officer (CRO) . The functions of the Committee are toidentify the risks related to the specific business segments of IRCTC in order toestablish an appropriate risk management framework in the Company.

The Risk Management Policy of the Company is also available on website .To further strengthen the risk management framework of the Company Vision 360 ManagementConsulting (P) Limited with the above-mentioned expertise was engaged to prepare the ERMframework of the Company.

During quarterly meeting of below Board risk management various risks have been beingidentified and deliberated at the level of Board level committee. The major risksidentified are as mentioned below:

1. Operational Risks

2. Change in Govt Policy Risks

3. Human Resource Risk

4. Business Continuity Risks

9.6 Significant and Material Orders

There are no significant or material orders passed by the regulators or courts ortribunals impacting the going concern status and the Company's operations in future.

9.7 Secretarial Standards

The Company has complied with applicable Secretarial Standards i.e. SS-1 and SS-2relating to 'Meetings of the Board of Directors'and 'General Meetings' respectively.


The details pertaining to Conservation of Energy and Technology Absorption and ForeignExchange Earnings and Outgo as required to be disclosed under Section 134(3)(m) of theCompanies Act 2013 read with Rule 8 of the Companies (Accounts) Rules 2014 is given asunder:

All out efforts and initiatives are taken by IRCTC to minimize adverse environmentalimpacts from its operations products & services by using processes practicesmaterials and products that avoid reduce and control pollution. Compliance with therelevant environmental laws and effective operation of the various pollution controlfacilities are ensured at all the Plants/Units. For ensuing a safe and clean environmentto reduce the dependence on conventional energy sources

(A) Technology absorption-

Details are mentioned below in the table:

No. Particulars Status
(a) the details of technology imported; NIL
(b) the year of import; NA
(c) whether the technology been fully absorbed; NA
(d) if not fully absorbed areas where absorption has not taken place and the reasons thereof; and NA

(B) Expenditure incurred on Research and Development.

Your Company does not undertake exclusive research projects as it does not havepresence in such domain. However to improve the technical capability and enhancecompetence some methods and techniques have been developed and innovative systems havebeen introduced for its business segments.

(C) Foreign exchange earnings and Outgo-

The Foreign Exchange earned in terms of actual inflows during the year and the ForeignExchange outgo during the year in terms of actual outflows as compared to previous year ismentioned below:

(Rs. In cr)
Particulars 2018-19 2017-18
Foreign Exchange Earning 33.54 37.59
Foreign Exchange Outgo
Foreign Travelling Expenses 0.67 0.33


Ministry of Corporate Affairs has vide its notification dated 5th June 2015notified the exemptions to Government Companies from the provisions of the Companies Act2013 which inter-alia provides that Sec. 134(3) (p) regarding statement on formal annualevaluation shall not apply to Government Companies in case the Directors are evaluated bythe Ministry which is administratively in-charge of the company as per its own evaluationmethodology.

Department of Public Enterprises (DPE) has laid down a mechanism for performanceappraisal of all functional directors. Your Company enters into Memorandum ofUnderstanding (MOU) with Ministry of Railways (Government of India) each year demarcatingkey performance parameters for the Company. The performance of the Company and Board ofDirectors are evaluated by the Department of Public Enterprises vis-a-vis MOU entered intowith the Government of India.

Further Ministry of CorporateAffairs vide its notification dated 5th July2017 has exempted the provisions relating to review of performance of Chairperson andnon-independent directors and the Board as a whole and evaluation mechanism prescribed inSchedule IVoftheCompaniesAct 2013 forGovernment Companies.


The following reports as reproduced in the table mentioned below with relevantsub-appendices form an integral part of this Directors' Report and have been placed withthere itAppendix respectively:

Name of the Report Appendix
Management Discussion andAnalysis Report A
Report on Corporate Governance B
Annual Reporton CSRand SustainabilityActivities C
Extract of Annual Return D
SecretarialAuditor Report E
Addendum to Directors' Report (Management replies to remarks contained in theAuditor's Report) F

The "Management Discussion and Analysis Report" provides an overviewof the affairs of the Company its legal status and autonomy business environmentmission & objectives sectoral and segment-wise operational performance strengthsopportunities constraints strategy and risks and concerns as well as human resource andinternal control systems [Appendix- "A"].

"Report on Corporate Governance" highlights the philosophy ofCorporate Governance and Key Values of the Company composition of Board of Directors andits Committees their details including profile of directors who joined the Board during2018-19 and thereafter attendance and remuneration of directors etc. other relevantdisclosures and general information for shareholders [Appendix - "B"]. Itis supplemented by following compliance certificates:

i. Certificate signed by the Chairman & Managing Director affirming receipt ofcompliance with the Code of Conduct and Key Values from all Board members and SeniorManagement personnel during the year 2018-19 (placed at Appendix-"B1");

ii. Certificate from Chairman & Managing Director and Director Finance with respectto the truth and fairness of the Financial Statements due compliances and financialreporting (placed at Appendix- "B2"); and

iii. Certificate of compliance of Corporate Governance provisions signed by aPractising Company Secretary (placed at Appendix-"B3").

"Annual Report on CSR and Sustainability Activities" provides a briefoutline of the company's CSR and Sustainability policy the composition of CSR Committeeaverage net profit of the Company for the last three financial years prescribed CSRexpenditure and details of CSR spent on the activities / projects undertaken during thefinancial year etc. [Appendix - C].

Pursuant to section 204 of the Companies Act 2013 read with Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 IRCTC has appointed M/s Akhil RohtagiCompany Secretaries an independent practicing firm of Company Secretaries to conductSecretarial Audit for the financial year 2018-19. The Secretarial Audit Report for thefinancial year ended March 31 2019 is annexed as to this Report [Appendix-"E"]

The extract of Annual Return pursuant to section 92(3) of the Companies Act 2013 andRule 12 of the Companies (Management and Administration) Rules 2014 in the prescribedform MGT-9 is appended to the Directors' Report. [Appendix-"D"].


The performance of the Company has been rated as "Very Good" based on theoutcomes achieved with reference to the key performance indicators (KPIs) enshrined in theMemorandum of Understanding (MoU) for the financial year 2017-18.

The Memorandum of Understanding reflecting the financial and physical targets for theyear 2019-20 was signed between the Company and Ministry of Railways on 20thMay 2019.


IRCTC endeavours for an all-round growth and the same is reflected in the list of itsawards & achievements:

1. IRCTC's tourism vertical has been conferred India e-Retail Awards 2018 in thecategory "Leisure and Travel e Retailer of the Year" at a ceremony held at J WMarriot New Delhi.

2. IRCTC's "Next Generation e-Ticketing System" awarded "India ContentLeadership-Awards 2018" under category'Website ContentAwards' by Inkspell Solutionsat 18.99 Latitude Lower Parel Mumbai.

3. IRCTC has covered itself with glory by winning the coveted Dun & Bradstreet's'PSU Awards' 2018 at The Lalit Hotel New Delhi. Bradstreet's publication 'India's TopPSUs' recognize the achievements of top performing PSUs across diverse sectors likemining manufacturing and services.

4. IRCTC has been conferred with India International Travel Mart award in the categoryof Rail product of the year & Best promotion in RuralTourism for its tourism verticalin a glittering ceremony held at Bangalore.

5. IRCTC has been awarded 16thAnnual Franchise Award & Star RetailerAward 2018 under category Leisure &Travel E RetaileroftheyearatPragati Maidan NewDelhi.

6. IRCTC has been awarded with "Digital Leader Awards for Excellence" underCategory: "Enterprise Applications" in Smart Technology Summit 2018 organised byThe Indian Express Group on 31st October 2018 Pragati Maidan New Delhi.

7. Internationally acclaimed Maharajas' Express owned and operated by IRCTC has bagged'World Travel Award' for 'Leading Luxury Train'for seven times in a row (2012-18) atglittering ceremony held at Lisbon Portugal.

8. IRCTC Rail e-ticketing website has won the Best e-Commerce Website in a SpecialisedCategory in the Drivers of Digital Summit and Awards 2018 organised by Inkspell Solutionsat 18.99 Latitude Lower Parel Mumbai.

9. IRCTC has been conferred with North India Best Employer Brand Awards 2018 byEmployer Branding Institute Noida inaglitterceremony held at The Taj Mahal Hotel NewDelhi.

10. The mobile application "IRCTC Rail Connect" used by lakhs of passengersdaily across the country for their e-ticket bookings has been conferred NationalAward forE-Governance 2018-2019 (Special JuryAward).


The company's only Joint Venture with Cox & Kings Ltd. with 50:50 equity in thename of Royale Indian Rail Tours Limited (RIRTL) was incorporated on 27thNovember 2008 with an objective to acquire furnish maintain manage and operate luxurytrains and to market holiday packages with such luxurytrainsasan integral part.

Accordingly a luxury train having 23 coaches was got manufactured fabricated andfunded by the company and was marketed in the name of "Maharajas' Express" andwas leased to Royale Indian Rail Tours Limited ("RIRTL") for the purpose ofrunning operating and managing the luxury tourist train for a period of 15 years.However due to certain issues between the equity partners the lease of the luxury trainwas withdrawn and the JV Agreement dated 10th December 2008 was terminated on12th August 2011. Hon'ble Supreme Court permitted IRCTC to operate the saidluxury train.Cox & Kings Limited initiated Arbitration proceedings seeking restorationof Joint Venture Agreement and filed statement of claims. The arbitration is in advancestage before Arbitral Tribunal.

IRCTC has also filed a petition against Royale Indian Rail Tours Limited (RIRTL) andCox & Kings Limited and others before National Company Law Tribunal (NCLT) (erstwhileCompany Law Board) under sections 388B 397 398 399 and 403 of the Companies Act 1956and the said petition is subjudice. NCLT has declared the company having managerialdispute. Details of the Joint Venture are covered in the notes to accounts of thefinancial statements for the periods ending 31st March 2019 vide note no. 37.3and 45. RIRTL has also taken permission from the NCLT for not holding the Board andGeneral meetings without its approval in July 2013.


As mentioned in the Para above the Board meetings and general meetings have not beenheld in RIRTL since financial year 2010-2011 due to pending dispute with Cox & KingsLimited. Therefore the consolidation of financial statements as required under section129(3) of the Companies Act 2013 could not be done as also explained and disclosed videNote No. 45 of the Notes to accounts of the financial statements for the period ending 31stMarch 2019.


17.1 Statutory Auditors

Under section 139(5) of the Companies Act 2013 Comptroller & Auditor General ofIndia has appointed M/s Serva Associates as Statutory Auditors of the Company to auditthe financial statements for the financial year 2018-19. The Statutory auditor has beendecided to be paid an audit fee of Rs. 10.45 lacs excluding out of pocket expenses plusapplicable taxes forthe year 2018-19.

17.2 Secretarial Auditor

Pursuant to section 204 of the Companies Act 2013 read with Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 IRCTC has appointed M/s Akhil RohtagiCompany Secretaries an independent firm of practicing Company Secretaries to conductSecretarial Audit for the financial year 2018-19

The Secretarial Audit Report for the financial year ended March 312019 is enclosed as Appendix-"E" to this report.

17.3 Internal Auditor

As per the section 138 of the Companies Act 2013 read with Rule 13 of Companies(Accounts) Rules 2014 the Company has appointed M/s K.S. Choudhary & Co. CharteredAccountants an independent accounting firm to undertake the assignment of internal auditfor F.Y. 2018-19. The details regarding scope and functions of the firm is placed in theManagement Discussion and Analysis Report.

17.4 Cost Auditors

Since the business segments of IRCTC are not covered under new Cost Audit Rulesnotified by Ministry of Corporate Affairs the Company got conducted the cost audit ofcost records maintained by the Rail Neer Plants on voluntary basis only through M/sSanjay Gupta &Associates as the CostAuditorfor the year 2018-19.


The Comptroller & Auditor General of India has undertaken supplementary audit onthe financial statements of the Company for the year ended 31stMarch 2019under Section 143(6) of the Companies Act 2013.

The comments of the C&AG on the Annual Accounts of the Company for the year ended31st March 2019 shall also form part of this report.


The Board of Directors of the Company in pursuance of section 134 (5) of Companies Act2013 confirms that:

(i) in the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

(ii) the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit or loss of the company for that period;

(iii) the directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities;

(iv) the directors have prepared the annual accounts on agoing concern basis; and

(v) the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.


Chairman & Managing Director Director (Finance) Director (Catering Services)Director (Tourism & Marketing) Chief Financial Officer (CFO) and Company Secretaryare Key Managerial Personnel (KMPs) of the Company.

The following changes have taken place in the Board of Directors and Key ManagerialPersonnel of your Company since the last Annual General Meeting:


(i) Mr. Sriram Venkatachalam (DIN: 07445220) Director (Catering Services) ceasedto hold office due to his superannuation on June 302019.

The following Directors are holding office as on the date of the report:-

Sr. No. Particulars Date of Appointment
1. Mr. Mahendra Pratap Mall (DIN:02316235) Chairman & Managing Director From 18th September 2017 onwards
2. Smt. Rajni Hasija (DIN: 08083674) Director (Tourism & Marketing) From 18th May 2018 onwards
3. Smt. Smita Rawat (DIN 07670758) Part-time Government Director From 8th December 2016 onwards
4 Mr. Neeraj Sharma (DIN 08177824) Part-time Government Director From 12th July 2018 onwards
5. Dr. Rabi Narayan Bohidar (DIN 00637818) Part-time (non-official) Director From 31st January 2017 onwards
6. Dr. Dheeraj Sharma (DIN 07683375) Part-time (non-official) Director From 31st January 2017 onwards
7. Smt. Kanak Aggarwal (DIN 00074469) Part-time (non-official) Director From 31st January 2017 onwards
8. Prof. Sachin Chaturvedi (DIN: 07960871) Part-time (non-official) Director From 10th October 2017 onwards
9. Mr.Comal Ramachandran Sundaramurti (DIN: 7965899) Part-time (non-official) Director From 13th October 2017 onwards
10. Ms. Sarita Deshpande (DIN: 08098222) Part-time (non-official) Director From 29th March 2018 onwards


The Board of Directors of your Company wishes to record their deep sense ofappreciation for the sincere efforts put in by the employees of the Company. YourDirectors also gratefully acknowledge the co-operation support and guidance extended tothe Company the Government of India Ministry of Railways Ministry of Tourism andDepartment of Public Enterprises.

Your Directors also acknowledge with thanks the assistance and guidance rendered byStatutory Auditors the Comptroller and Auditor General of India Secretarial Auditor andCost Auditor and wishes to place on record their sincere thanks to its valued customersand licensees for their continued patronage.

For and on behalf of Board of Directors
(M.P. Mall)
Date : 26.07.2019 Chairman & Managing Director
Place : New Delhi DIN:02316235