64TH MEETING OF THE BOARD OF DIRECTORS

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64TH MEETING OF THE BOARD OF DIRECTORS

• JKSRTC
• SRINAGAR
• 25.7.2005

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Introduction

• Introductory Remarks by Honble Chairman
• Remarks by Honble MoS
• Review of Performance
• Agenda Items

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Agenda Item No3 Review of Performance 2004-2005

• Average Growth Rate 41
• Overall Revenue for 2004-2005
• Rs. 65.01 crores
• Overall revenue for 2003-2004
• Rs. 46.21 crores
• Corporation lost at least Rs. 5 crores due to
  unprecedented winter
• Performance could have been even better
• Monthly Data

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Overall Revenue 2004-2005
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Positive Aspects of 2004-2005

• Each single month a record in itself
• Previous record revenue of Rs 514.225 Lakhs
  during a single month achieved in July 2001-02
  exceeded in seven out of twelve months of the
  financial year
• Corporation exceeded Rs. 6 crore figure in three
  months June,2004, Aug,2004 and Oct,2004 by
  earning landmark revenues of Rs. 600.344 lakhs,
  631.300 lakhs and 611.052 lakhs respectively
• Comparison with National Data

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Decline in Budgetary Support
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Decline in Plan assistance
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Implications

• Reduction in Plan Assistance
• Reduction in non Plan assistance
• Difficulty in getting even reduced plan
  assistance almost three months behind at this
  stage
• Non payment of dues
• Withdrawal of basic operational facilities
• The Corporation is loosing at least Rs. 50 lacs
  /month due to non payments
• Board of Directors may like to discuss

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Comparison of Key Operational Parameters with
Hill STUs
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Agenda Item No 4 Performance for First Quarter
2005-2006

• The Corporation is in operational profits since
  May 2005
• The corporation earned overall revenue of
  Rs.2001.46 lacs against an overall earning of Rs.
  1605.52 lacs during the same quarter in
  20004-2005
• The Corporation achieved growth rate of 25
  despite very poor April

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Volume of Operations First Quarter
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Bank Position for June 2005 Opening
Balance(-)95180262.68
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Agenda Item No 5 Action Taken Report

• Pending Issues
• Recruitment Rules
• Delegation of Powers
• Commercial Exploitation of Assets
• Unauthorized plying of vehicles
• V.R.S
• Financial Package
• Restoration of routes
• Hiring of private vehicles
• Engagement of doctors

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OUTSTANDING AS ON 31ST JUNE, 2005
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Agenda Item No. 6 Budgeted Income and
Expenditure 2004-05

• Budgeted Income Rs. 45 crores
• Budgeted Expenditure Rs. 80.66 crores
• Actual Income Rs. 63.75 operational and overall
  income Rs. 65.01 crores
• Additional Income over budget Rs. 20 crores
• Actual Expenditure Rs. 84.71 crores
• Excess expenditure over budget Rs. 4.71 crores
• Break Up HSD-2.79 spares-0.65
  tyre/tubes/flaps-25licenses and taxes-0.70
  TA/DA-9Int on OD-16
• Board may confirm excess expenditure (Annexure
  A4)

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Budget Estimates for First Quarter and Actual
Income and Expenditure
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Agenda Item No.6 Audited Accounts of 2003-2004

• Net Loss Rs. 53.89 crores
• Accumulated Losses Rs 544.25 crores
• State Contribution Rs. 25.43 crores meant for
  GPF/CPF diverted to meet salary expenses
• Reconciliation of Interest payable to state
  Government
• Non provision of
• CPF Interest of Rs. 7.64 crores
• MACT Awards and interest

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Agenda Item No. 7 Audit 2003-2004

• Inter Unit Adjustment Rs. 4.97 crores
• Persistent Irregularities
• Accounting Methodology
• Classification of Good, bad and doubtful debts
• Recovery Delays
• Corrective Steps
• Posting of trained AAO/AO
• Computerization
• TALLY
• Separate Cadre of Accounts, Statistical and
  Planning cadre
• Outsourcing

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Agenda Item No.8 Raising of Loan of Rs. 6 Crores
for Acquisition of Trucks

• Request made to JK Bank
• Approval of Board Members obtained by circulation
• Expected Rate of Interest 9.5
• No. of trucks to be acquired 70
• Net expected increase in revenue Rs. 25
  lacs/month or Rs. 3 crores year
• Gross increase in revenue Rs. 7 crores
• Together with acquisition of 50 Buses,
  acquisition would enable corporation to enter an
  era of robust profit

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Agenda Item No. 9 Release of 9 Installments of
COLA

• Monthly Expenses Rs. 15 Lacs
• Just Reward of BEST EVER PERFORMANCE SINCE 1948
• Motivation
• Comparison
• No additional burden on the Government
• Costs would be met by Corporation

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Agenda Item No. 10Purchases during 2004-2005