Annual Report

Transcription

1 KARNATAKAURBANINFRASTRUCTURE DEVELOPMENT & FINANCE CORPORATION LIMITED Annual Report Registered Office : Nagarabhivrudhi Bhavan, # 22, 17th F Cross, Binnamangala lind Stage, Old Madras Road, Indiranagar, Bengaluru Tel: Fax: info@kuidfccom Website :wwwkuidfccom CIN: U85110KA1993SGC014869

2

3 SLNO PARTICULARS PAGE NOS 1 Board of Directors 1 2 Management Directors Report Statutory Auditors Report Report of Comptroller and Auditor General of India Financial Statements 6787

4

5 SL NO DESIGNATION 1 Sri Srivatsa Krishna, las Chairman, KUIDFC, Bengaluru 2 Sri Mahendra Jain, las, Additional Chief Secretary to Govt, Urban Development Department, Bengaluru Chairman Director Sri Shambhu Dayal Meena, las, Principal Secretary to Government, Housing Department, Bengaluru Sri Tushar Girl Nath, las, Chairman, BWSSB,Bengaluru Sri Ritesh Kumar Singh, las Secretary (Expenditure) to Government, Finance Department,Vidhana Soudha, Bengaluru DrVishalR, las, Director of Municipal Administration, VVTowers,Bengaluru Sri ShekarappaBS, las, Metropolitan Commissioner, BMRDA Bengaluru Sri Syed Hasim, Nol71, "D 11 Block, 9th Cross, Rashad Nagar, Bengaluru Sri Venkataramu, S/o Late Muniyappa No67, Vijayalaxmi Nilaya, Byrathi Village, Kothanur Bengaluru Sri Dowlat Baig, No710,4th Cross, Sathgalli Layout,Mysore57019 Sri VPonnuraj, las, Managing Director,KUIDFC, Bengaluru Director Director Director Director Director Director Director Director Managing Director

6 Company Secretary Sri K M Ramesh Statutory Auditors M/s SNR & Company Chartered Accountants, Bengaluru BANKERS State Bank of Mysore State Bank of India IDBI Bank Limited Corporation Bank Syndicate Bank CanaraBank VijayaBank Union Bank of India

7 State level Steering Committee (SLSC) JnNURM SNo Designation SLSC Hon'ble Chief Minister Hon'ble Minister for UDD, GoK Hon'ble Minister for Municipal Administration, GoK Hon'ble Minister for Housing, GoK Chairman, DLRMC, Bangalore Urban District and Hon'ble of Parliament, GoI Chairman, DLRMC, Mysore District and Hon'ble of Parliament, Gol 7 Hon'ble District in charge Minister and Chairman, CLRMC, Bangalore District Hon'ble District incharge Minister Chairman and CLRMC, Mysore The Chief Secretary to Government, GoK Addl Chief Secretary/Principal Secretary, UDD, GoK Principal Secretary, Finance Dept, GoK Principal Secretary, Housing Department, GoK Principal Secretary, PWD, GoK Principal Secretary, Transport Department, GoK Principal Secretary, Tourism & Culture, GoK Secretary, (M&UDA), UDD, GoK MD, KUIDFC SLNA SNo 1 Commissioner, BMRDA 2 Commissioner, BBMP 3 Chairman, BWSSB 4 Commissioner, BDA 5 MD,KSRTC 6 MD,BMTC 7 MD,KUWSDB 8 DC, Bangalore 9 DC, Mysore 10 Commissioner, KSDB, Bangalore 11 Commissioner, MCC 12 Commissioner, MUDA Special Invitees Designation 13 Any other officer connected with the Mission found necessary Chairperson Vice Chairperson Secretary

8 Empowered Committee for the World Bank assisted Karnataka Municipal Reforms Project (KMRP) 1 Additional Chief Secretary to Government, GoK Chairperson 2 AddlChief Secretary/Principal Secretary to Government, Urban Development Dept 3 Director General, Administrative Training Institute, Mysore 4 Principal Secretary to Government, Planning Department 5 Commissioner, Bruhat Bangalore Mahanagara Palike 6 Secretary to Government (M & UDAs), Urban Development Department 7 Chairman, Bangalore Water Supply & Sewerage Board 8 Managing Director, Karnataka Urban Water Supply & Drainage Board 9 Secretary to Govt, (Expenditure), Finance Department, Government ofkarnataka 10 Managing Director, KUIDFC Secretary 11 Director, Municipal Administration 12 Director, Dept of Town & Country Planning Empowered Committee for ADB assisted North Karnataka Urban Sector Investment Programme (NKUSIP) Additional Chief Secretary to Government of Karnataka Addl Chief Secretary/Principal Secretary to Government Urban Development Department Principal Secretary to Government Planning Department Secretary to Government (M&UDAs) Urban Development Department Secretary to Government (Expenditure), Finance Department Managing Director, KUWS & DB Director, Municipal Administration Managing Director, KUIDFC Chairman Secretary

9 State Level Sanctioning Committee for the Bangalore Mega City Scheme I Revolving Fund (MCRF) 1 2 Additional Chief Secretary to Government ofkamataka Additional Chief Secretary I Principal Secretary to Government Urban Development Department Chairman 3 Principal Secretary to Government, Finance Department 4 5 Director (Housing & Urban Affairs), Planning Commission Govt of India, New Delhi Joint Secretary (UD &A), Ministry of Urban Development, Govt of India, New Delhi 6 Managing Director, KUIDFC Secretary Empowered Committee for 9 towns project 1 Additional Chief Secretary, GoK Chairperson 2 Additional Chief Secretary, Finance Department 3 Addl Chief Secretary/Principal Secretary, UDD 4 Principal Secretary, Planning Department 5 Secretary, Municipalities and UDAs 6 Director, Municipal Administration 7 MD,KUWS&DB 8 MD,KUIDFC Convenor Empowered Committee for ADD assisted Karnataka Integrated Urban Water Management, Investment Programme (KIUWMIP) 1 Additional Chief Secretary to Govt, Chairperson 2 Addl Chief Secretary/Principal Secretary to Govt, Urban Development Dept 3 Principal Secretary to Govt, Planning Department 4 Secretary to Govt, (M&UDAs) Urban Development Dept 5 Secretary to Govt(Expenditure) Finance Dept 6 Director, Directorate of Municipal Administration 7 Managing Director, KUIDFC Secretary

10 Empowered Committee for World Bank assisted Karnataka Urban Water Sector Improvement Project (KUWASIP) 1 Additional Chief Secretary Chairman to Government ofkarnataka 2 Addl Chief Secretary/Principal Secretary to Government Urban Development Department 3 Principal Secretary to Government, Planning Department 4 Secretary to Government, Urban Development Department 5 Secretary (Expenditure) to Government, Finance Department 6 Secretary to Government (B & R), Finance Department 7 Managing Director, Karnataka Urban Water Supply & Drainage Board 8 Managing Director, Secretary KUIDFC Empowered Committee for ADB assisted CITY CLUSTER DEVELOPMENT PROJECT (CCD) 1 The Additional Chief Secretary to Govt GoK Chairman 2 The Addl Chief Secretary to Govt C&I Dept 3 The Addl Chief Secretary/Principal Secretary to Govt UDD 4 The Commissioner of Police, Bangalore 5 The Principal Secretary to Govt Finance Dept 6 The Principal Secretary to Govt Housing Dept 7 The Principal Secretary to Govt Infrastructure Development Dept 8 The Principal Secretary to Govt Planning, Programme monitoring and Statistics Dept 9 The Commissioners, BBMP 10 The Commissioner, BDA 11 The Commissioner, BMRDA 12 The Chairman, BWSSB 13 The Secretary to Govt UDD 14 The Commissioner, DULT 15 The Managing Director, BMTC 16 The Managing Director, KUIDFC Convener

11 Solid Waste Management 1 Additional Chief Secretary/Principal Secretary to Govt, Chairperson Urban Development Department 2 Principal Secretary to Govt, Finance Department 3 Commissioner Bruhat Bengaluru Mahanagara Palik:e 4 Secretary to Govt, Forest, Ecology & Environment 5 Secretary to Govt Urban Development Department 6 Special Commissioner Bruhat Bengaluru Mahanagara Palik:e 7 Secretary to Govt, (Mining) Commerce and Industries Dept 8 Managing Director, KUIDFC Secretary SMART CITY High Power Steering Committee 1 Chief Secretary, GoK Chairperson 2 Additional Chief Secretary/Principal Secretary to Govt, Urban Development Department 3 Principal Secretary to Govt, Finance Department 4 Principal Secretary Planning Department 5 6 Director, Works Commissioner, DULT 7 Secretary (M& UDA) Urban Development Department 8 Secretary Transport Department 9 Secretary Public Works Department 10 Commissioner, Bruhat Bengaluru Mahanagar Palike 11 Managing Director, Karnataka Urban Water Supply & Drainage Board

12 12 Chairman Bangalore Water Supply & Sewerage Board 13 Commissioner Bangalore Development Authority 14 Commissioner, Bangalore Metropolitan Region Development Authority 15 Managing Director Bangalore Metro Rail Corporation Limited 16 Director Directorate of Municipal Administration 17 Managing Director KUIDFC Secretary

13 Empowered Committee State Level Empowered Committee for (JNNURM) 1 Chief SecretarytoGovernment, Govennnentof arnka 2 Principal Secretary to Government, Finance Department 3 Addl Chief Secretary/Principal Secretary to Government Urban Development Department 4 Principal Secretary to Government Housing Department 5 Principal Secretary to Government Transport Department 6 Secretary to Government (M&UDAs), Urban Development Department 7 Secretary to Govennnent, Tourism & Culture Department 8 Commissioner, BBMP 9 Commissioner, BMRDA 10 Chairman, BWSSB 11 Commissioner BOA 12 Managing Director, KSRTC 13 Managing Director, BMTC 14 Chairman & Managing Director, KUWS&DB 15 Deputy Commissioner, Mysore 16 Commissioner, Mysore City Corporation 17 Commissioner, MUDA 18 Any other Officer connected with the Mission found necessary 19 Managing Director, KUIDFC Chairman Secretary

14 ,, l b1idb rr[ n!jf:t!, Srivatsa Krishna, las, Chairman V Ponnuraj, las, Managing Director Dr Arundhathi Chandrasekhar, General Manager Administration, Task Manager KAS (Senior scale) KUWSMP (1/c), Task Manager16 Towns (Vc) Ashok D Jain, KMAS (Retd) General Manager UrbanAffairs KMRamesh General Manager Project Finance NG Jagannath General ManagerFinance & Accounts Capt RR Doddihal General ManagerTechnical CS Pratinidhi Advisor UWS N Srinivas Superintending Engineer (KMRP) H Honnegowda Superintending Engineer (NKUSIP) VK Ramamani, KMAS Task Manager (KIUWMIP) Arif Ulla Shariff, KAS (Retd) Task Manager, NKUSIP cs Karthik A Company Secretary MRNagarathna Dy General Manager UM RRoopa, KAS Dy General Manager Admn & HR Kavitha Rajaram, KAS Dy General Manager Legal and Land Acquisition & RR Swetha GN, KAS DyGeneralManagerGolSchemes Joseph S Mariraj Dy General Manager (Media & PR) & AddlChargeDGM Training & Capacity Building K Kavitha, KMAS Deputy General Manager UA PJayanuila,KMAS Deputy General Manager (PDU) Hemanth Sharan, KMAS BRSuresh DSSridhar HHanumantha Raju BS Niranjana Murthy KS Ashwathanarayan Munawar Ahmed Ghori Deputy General Manager IT DeputyGeneralManagerTRUST& Megacity Deputy General Manager IEC/DOC/CDP/ BUSINESS PROJECT DEV Executive Engineer NKUSIP (0 & M Cell) Assistant General Manager ADB Assistant General Manager Trust & PMU Assistant Executive Engineer (NKUSIP) H Kwnaraswamy Assistant Executive Engineer (KMRP) Vidyulatha Pavithra R SRPrasad Corporate Executives, Bengaluru Assistant Executive Engineer KMRP Assistant Executive Engineer KUWSMP Assistant Executive Engineer KUWSMP

15 KM Gangadarappa Deepak Assistant Executive Engineer (KIUWMIP) Assistant Executive Engineer (KIUWMIP) Regional Office, HubliNKUSIP Siryuths/ Smt Shivananda Kapashi KAS Capt RR Doddihal Executive Director General ManagerTechnical Chief Engineer, Addl Charge JC Sangondhi math Sriyuths Executive Engineer Divisional Office, Dharwad NKUSIP Vinayak Palanakar, KAS Deputy Project Director, Addl Charge Basavaraj Bidarakatti Sriyuths Executive Engineer Divisional Office, Belgaum NKUSIP Mulai Muhilal M P, IAS Deputy Project Director, Addl Charge K Prabhakar Shet Executive Engineer Sriyuths Divisional Office, Kalburgi NKUSIP Doddabasavaraju Sharanabasappa Patil Sriyuths Deputy Project Director Executive Engineer Divisional Office, Bellary NKUSIP S R Garwad, KMAS (Retd) Deputy Project Director Kaja Mohinuddin Executive Engineer

16 Dear s, Directors' Report Your Directors take great pleasure in presenting 22nd Annual Report highlighting the achievements ofyour Company during There has been significant increase in urban population during last few years which resulted in increased demand for more basic urban infrastructure facilities like drinking water, roads, Under Ground Drainage(UGD) System etc to sustain economic growth of the State of Karnataka The Urban Local Bodies(ULB) in Karnataka are yet to evolve to the level of self sustainability In this regard, your Company, as a nodal agency for implementing urban infrastructure facilities inthe state, has been making notable contribution over the years The year has again been fruitful in making significant contribution I Financial Result The Financial Results of the Company for the year ended 31It March, 2016 are as follows: c in lakhs) Particulars Profit Before Taxes Nil Nil Provision For Taxation Deferred Tax Asset(+) Balance available for Appropriation Appropriation: Transfer to Balance Sheet Transfer to General Reserve The Company has been receiving Management Fee to meet its administrative and salary expenditures The Company has utilized 600 crores out of the Management Fee received for meeting its expenditure during the year under report

17 DIRECTORS' REPORT A Expenditure status of Externally Aided Projects as on (` in Crores) Sl No Name of the project Project Cost Cumulative expenditure upto Expenditure for the FY Cumulative expenditure upto KUDCEMP NKUSIP KIUWMIP KUWASIP (007) KMRP KUWSMP Total ProjectWise Fund Flow Statement of Government of Karnataka Account for FY ON GOING PROJECTS DESCRIPTION KUDCEMP ADB Schemes NKUSIP KIUWMIP World Bank Schemes KUWASIP KMRP KUWSMP GoI Schemes JNNURM SCM GoK Scheme SWM 16 TOWNS SUB TOTAL GOK REVOLVING FUNDS MCRF UIDF SUBTOTAL GRAND TOTAL Opening Balance (GOK A/c) ADD: Receipts for the year Total funds available LESS: Releases / Expenditure for the year Balance funds at the closing (GOK A/c) (168) (168) (007) (168) (000) ANNUAL R EPORT

18 II Dividend Your Directors do not propose dividend for the year III Progress inimplementation of External Aided Projects The progress of externally aided projects under implementation is highlighted below: A Karnataka Urban Development and Coastal Environmental Management Project (KUDCEMP ADB assisted) KUDCEMP has been implemented in 10towns of Coastal Karnataka ie,ank:ola, Bhatkal, Dandeli, Karwar, Kundapura, Mangalore, Puttur, Sirsi, IDlal & Udupi The completed components include water supply in all ten towns, storm water drains and solid waste management, urban transport, municipal facilities viz complexes, markets, bus stand etc apart from public conveniences and civic amenities Under Ground Drainage (UGD) works in Karwar, Bhatkal, Udupi & Mangalore towns have been completed During the reporting year , balance works of 11 KV express feeder mains is completed and STP at Surathkal is commissioned The expenditure during the year is 089 crores and cumulative project expenditure on all the components of the KUDCEM Projectupto end ofmarch, 2016 is crores B World Bank assisted Karnataka Urban Water Sector Improvement Project (KUWASIP): The World Bank assisted KUWASIP is a project for reforms in water and sanitation sector and service improvements in water sector The estimated cost of the project was crores The project has been implemented in three cities viz, Belgaum, Gulbarga and HubliDharwad during the period All the works under the two physical components viz, (i) Priority Investments (for improving bulk supply) and (ii) Demonstration Project (for demonstrating feasibility of 24x7 continuous pressured water supply) have been completed and commissioned 24x7 water supply system was operationalized in five demo zones (two zones inbelgaum, one zone inkalburgi and two zones inhublidharwad) during 2008The system has been working satisfactorily and has benefitted a population of about 214 lakhs The total expenditure incurred on the above project upto the end of March, 2015 is crores The contract for O&M of 24x7 water supply in the Demonstration Zones for the period to has been awarded at a contract value of 5207 crores The O&M cost is met out of user charges C World Bank assisted Karnataka Municipal Reforms Project (KMRP) The World Bank assisted Karnataka Municipal Reforms Project (KMRP) aims to improve the quality of life of citizens by improving the delivery of urban services and promoting good governance among the urban local bodies(ulbs) KMRP addresses the need to strengthen institutional and fmancial frame works in Urban Service Delivery at ULB level The total funding for this project is 1364 cr and expenditure as on March, 2016 is crores

19 TheProjecthasbeenimplementedinthefollowing30TownsoftheState: Tiptur, Madikeri, Sringeri, Chittapur, Doddaballapur, Chikkaballapur, Bhadravathi, Hassan, Kolar, Savanur, Robertsonpet, Chitradurga, Chintamani, Holenarasipura, Kanakapura, Chikkamagalur, Nagamangala, Sira, T Narasipur, Magadi, Nanjanagudu, Kollegala, Shimoga, Humnabad, Gurumitkal, Hiriyur, Harihara, Jewargi, Haliyal, & Hukkeri Two towns of Athani & Sakleshpur was dropped owing to non availability of land for construction ofstp The Component wise progress is as follows: A Institutional Development Component: 1024Crore) 1 This component includes support for implementation of statewide reforms namely implementation of Double Entry Accrual Based Accounting system in 158 Urban Local bodies (ULB) and computerization of municipal functions in 164 ULBs of the State A separate cell under the control of the Directorate of Municipal Administration(DMA) has been created for this purpose The computerization of municipal functions covers five modules namely ULB website, Public Grievance Redressal, Birth and Death Certification and GIS based property tax information and the same are made live in all164 ULBs The Double Entry Accrual Based Accounting modules have been completed and is live in 158 ULBs 2 This component also supports preparation of georeferenced base maps for 28 urban areas Accurate base maps are essential for preparation of preliminary engineering design for roads, bridges, culverts, storm water drain, water supply, underground drainage system and creation of legal boundary An Urban Mapping cell has been exclusively set up to function under the control of Directorate of Town and Country Planning, Govt of Kamataka, to oversee the implementation Scientific Base Maps has now been prepared in 28 ULBs and MoD clearance obtained 3 This component also provides capacity building activity in identified 21 areas to the ULB staff and elected representatives for which State Institute of Urban Development (SIUD), Mysore has been appointed as the nodal agency A strong system andprocess is put inplace at SIUD for carrying out capacity building activities for all Urban Functionaries in future As many as 100municipal officials have been identified to develop as resource persons Further, effective training/learning modules have also been developed, to name a few of the major outcomes of this component So far, 25,539 municipal functionaries have been trained and all the training related activities have been completed under the project B MunicipallnvestmentComponent: 419 Crore) This component provides investment support for urban infrastructure improvement in selected 30 ULBs of the State The ULBs have been grouped into four packages of8, 5, 10 and 7 ULBs Out of a total91 works contract proposed under this component, 80have been completed, 9 are in progress, one work ofharihara UGD has been terminated and DPR for one work ofkollegala 2417 Water Supply is under finalization Cabinet has also accorded

20 approval to take up one additional UGD work of Tiptur for which DPR is under fmalization To bring in an effective monitoring system in implementation of the infrastructure projects(water supply, underground drainage, storm water drains, roads, rain water harvesting, construction of Low Cost Sanitation Units etc,) dedicated Project Implementation Units, with a well defined responsibility matrix, have been set up at the Head Office and at each of the towns a Water Supply: Augmentation of water supply work at a cost of f 723 crores have been completed in Madikeri, Savanur, Chintamani, Hassan, Jewargi and Sira Works amounting to f 735 crore are inprogress in Chikkamagalur, Holenarasipura and Chitradurga With an objective to bring in water sector reforms like reduction in Unaccounted For Water (UFW), 100%billing, adoption of volumetric tariff, the existing intermittent water supply has been upgraded for providing 24x7 continuous pressurized water supply in smaller urban areas 24x7 Water Supply works are being implemented in the towns ofhaliyal, Nanjangud and Magadi at an estimated cost off 6817 cr Distribution network of km have been laid and houses have been connected with water supply The spill over works is expected to be completed by September, 2016 b UnderGroundDrainage(UGD): UGD work at a cost of 28 crhas been completed in Chikkaballapur and the UGD missing link works at Hassan and Chintamani been completed at a cost of 224 cr Works amounting to 110 cr is in progress at Doddaballapur, Bhadravathi, Tiptu & Humnabad The UGD work of Harihara has been terminated and bids are being invited for balance work Sewer network length of39570 km has been laid and service connections to houses arebeing commissioned accordingly a) Services of NonGovernment Organisations(NGOs) were availed for building awareness in order to establish last mile connectivity at the end consumer b) Further, in order to ensure that the UGD assets are put to proper use and the service levels are significantly improved, a model bid document has been prepared in collaboration with the World Bank for outsourcing of Operation and Maintenance through a Performance Based Management Contract (PBMC) and the same have been shared with the project ULBs c Sewerage Treatment Plants (STP): To improve the sanitary condition in urban areas, construction of STPs is proposed in Doddaballpur, Tiptur, Chikkabal1pur and Humnabad

21 The work of STP in Chikkaballapur has been completed STP work in Dodaballapura is nearing completion and STPwork at Humnabad & Tiptur are under progress d Storm Water Drains (SWD): Works for construction of 30 km storm water drain estimated to cost 33 cr have been completed in Sringeri, Hassan, Savanur, Kolar, Robertsonpet, Gurmitkal, Chitradurga, Chintamani Work at an estimate of 568 cr is inprogress in Chikkamangalur e Solid Waste Management: The work of development of Land fill site in Chitradurga at a cost of 156 cr has been completed Bid documents for outsourcing operation and maintenance through Performance Based Management Contract have been prepared in consultation with World Bank andthe same have been forwarded to ULB for further necessary action f Rain Water Harvesting (RWB): Works at a cost of 240 cr have been completed at Kolar, Savanur, Robertsonpet, Chitradurga, Chintamani, Sira,Nagamangala and Hiriyur g Roads and Roadside drains: To bring in better road connectivity, works for a length of252 km at a cost of 118cr have been completed in Madikeri, Sringeri, Chittapur, Hassan, Kolar, Savanur, Robertsonpet, Chitradurga, Chintamani, Hassan, Kanakapura, Nagamangala, Shimoga, Chikkamagalur and Hiriyur h Low Cost Sanitation (LCS): With an objective to construct low cost sanitation units for the Economically Weaker Section in urban areas so as to eradicate the inhuman practice of defecating in the open, 3139 LCS units at a cost of 55 cr have been constructed This activity has improved the overall sanitation in the towns besides bringing dignity to the urban poor, especially the household women i Bangalore Development Component: (f 791 Crore) Bangalore Road Rehabilitation component supports rehabilitation of roads of about 125 kms of core city road network including improvement of foot path, drainage etc The road rehabilitation work has already been completed by the BBMP Greater Bangalore Underground Drainage Program project supports construction of underground sewerage network of2314 Km& about 2,10,000 House Service Connections (HSC) This component has been dovetailed with JnNURM program which has been approved by the Govt of India for an amount of Cr So far, 2,314 Km of sewer lines have been laid and 2,10,000 HSC have been provided 1991 LCS units have been constructed in the slum settlements under the Greater Bangalore propoor sanitation program Finance plus Elements: Improve public health by reducing the contamination of ground water resources due to onsite sewage disposal/open defecation

22 Minimizes the pollution of storm water channels, tanks, scenic lakes and ground water aquifers Prevention of Sewage flow and reduction of pollution in about 70 lakes and sewage flow of about 230 MLD for 2011 & 410 MLD for 2036 will be intercepted & conveyed tothestps Eliminate unsanitary overflows from septic tanks and other sanitation facilities and replace the use of septic tanks which would help generate substantial cost savings, besides public health benefits The KMRP has been closed on 31ot March, 2015 It is envisaged that most of the spill over works beyond the project closure date will be completed in the financial year out of the State share D ADB assisted North Karnataka Urban Sector Investment Programme (NKUSIP): ADB assisted NKUSIP is being implemented in 25 towns predominantly located in northern region ofkamataka to boost economic growth in a region that has traditionally lagged behind The primary objective of the programme is to improve the status of urban infrastructure and attempt towards better service provision, focusing on environmental sanitation improvement The programme utilizes the Multitranche Financing Facility (MFF) ofadb and is being implemented intranches The 25 towns under the Program are: 6 city corporations HubballiDharwad, Belagavi, Kalaburagi, Ballari, Davangere and Vijayapura 18 city municipal councils Bidar, Raichur, Gangawati, GadagBetageri, Haveri, Hospet, Chamrajnagar, Gokak, Koppal, Ranebennur, RabkaviBanhatti, Yadgir, Basavakalyan, Jamkhandi, Sindhanur, Ilkal, Nippani and Shahabad One town municipal council Badami The components under NKUSIP include Water Supply, Sewerage, Urban Drainage, Slum Improvement, Roads and NonMunicipal Infrastructure (Fire & Emergency Service components, Lake Development, District Information Centre and Tourism Infrastructure) First Tranche: Total Project Cost Crores (US$ 369m) LoanAmount I0665 Crores (US$ 237 m) This Tranche has been closed on 31" 1 December, 2013 Since, the sewerage works could not be completed within this period, they have been shifted to Tranche 4 and the original project cost oftranche I has been reduced from 281 crore($51 million) to 176 crores ($ 369 million) with corresponding reduction in the loan amount from 148 crores ($ 33 million) to crores ($ 237 million) The procurement of fire & emergency equipments, water supply works in Haveri, Hospet & Raichur, and construction of Urban Infrastructure Bhavan (Civil works) have been completed The financial closure of First Tranche was on 301h June, 2014 The expenditure is 161 Crores and fmalloan amount is 12172crores($ 2342 million)

23 Second Tranche: Total Project Cost LoanAmount Crores (US $ 2103 m) 5781 Crores (US$ 1230m) This tranche includes 73 packages out of which 35 packages have been completed Works for 36 packages are in progress Two contracts have been terminated due to poor performance The closing date for this Tranche is The financial progress upto 31" 1 March, 2016is 747 crores Third Tranche: Total Project Cost LoanAmount 47799Crores(US$1017m) 2820Crores(US $ 600m) The loan and project agreements for this tranche were signed on 19th July, 2013 This tranche includes 27 packages out of which 12packages have been completed Works for 14 packages are in progress One contract has been terminated due to poor performance The closing date forthis Tranche is The financial progress upto March, 2016 is 245 crores Fourth Tranche: Total Project Cost LoanAmount Crores (US$ 911 m) Crores (US$ 633m) The loan and project agreements for this tranche were signed on 16th September, 2014 and loan has been made effective on 4th December, 2014 This tranche includes 18packages 17packages have been awarded and the remaining one package (one terminated contract shifted from Tranche 1) is under procurement The closing date for Tranche 4 is The financial progress upto 31" 1 March, 2016 is202 crores Highlights: Continuous pressurised 2417 water supply project in Ilkal has been commissioned High end Sewage Treatment Plants (Sequential Batch Reactors) are being constructed in major City Corporations like Huballi, Dharwad, Davangere and Gulbarga 40 MLD Sewage Treatment Plant based on SBR technology has been successfully commissioned at Hubli Major bulk water supply improvement works inbasavakalyan, Davangere, Shahabad, Bidar, Yadgir, Gokak and Chamarajanagar have been completed Inorder to maximize the benefit of the project and to ensure last mile connectively, Performance Based Management Contracts have been entrusted in 12ULBs to upgrade the current system to 24 X 7 continuous pressurized water supply system, which will benefit about 3,00,000 households The sewerage works inhubballi has been completed and commissioned Urban mapping has been undertaken in selected Program ULBs through Aerial Photogrammetry and Satellite Imagery

24 E ADB assisted Kamataka Integrated Urban Water Management Investment Programme (KIUWMIP) "Jalasiri" The Government has accorded approval for the programme "Kamataka Integrated Urban Water Management Investment Programme" (KIUWMIP) with ADB assistance at an estimated cost of crores with loan component of 975 crores Besides the loan funds, the ADB has agreed to support the programme with an additional amount of 1170 crores as a grant fund out of its Urban Financing Partnership Facility The programme comprising the following three major components is planned to be implemented as per the Multitranche Financing Facility (MFF) of the ADB spread over a period of 10years ( ) Water supply and Sewerage infrastructure investments are proposed intwo tranches 1) The bulk of investment pertains to expanding water supply and sewerage infrastructure in the selected cities The programme aims to achieve comprehensive infrastructure of 2417 water supply andunderground drainage in the selected cities 2) The second component relates to enabling urban local bodies to implement reforms in governance with focus onwater and sanitation 3) The third component aims to strengthen the role of your Company as a Special Purpose Vehicle and a fmancial intermediary to enable higher investments and sustainable growth in Urban Sector Project Location: 1) Tranche I covers investments for ULBs ofdavanagere, Harihara andbyadagi in the upper TungaBhadrariver basin 2) Tranche2 covers investments for ULBs ofmangalore, Puttur, Udupi andkundapura Project Status: 1) Tranche I: (I) Sewerage works: All four sewerage work packages are awarded, two are at Davanagere, one at Harihara and one at Byadgi at a cost of crores The financial progress as on 31/03/2016 is 5684 crores (2050%) (ii) 2417 WS works: There are 4 packages, 3 bulk water works and 1 distribution work DPRs ofbyadagi, Harihara and Ranebennur have been technically sanctioned and bulk water work tenders are being invited shortly Davanagere water supply DPR is under finalisation 2) Tranche 2: 24x7 Water supply PDRs of Udupi, Puttur and Kundapura have been reviewed Water supply PDRs of Mangalore town is under review Loan negotiation is expected to takeplace in 2016 F World Bank Assisted Karnataka Urban Water Supply Modernisation Project (KUWSMP): Based on the success of 24x7 water supply demonstration project, the proposal of upscaling 24x7 water supply to the entire corporation areas of Belagavi, Kalburgi and HubballiDharwad at an estimated cost of 1809 crores has been approved by the

25 City Funding Pattern Urban Infrastructure & Governance Central Share State Share ULB Share Basic Services to the Urban Poor Central Share State/ULB Share Bangalore Mysore

26 amount off crores has so far been spent (including share ofulb/implementing Agency) 32 projects have been completed so far The cumulative financial progress for FY201516isf24355 crore Basic Services to Urban Poor (BSUP) 18 Projects with an investment off crore have been approved so far Of this, the Gol's share is f crore and the State Government share is f crore The Goi has released f crore and Government of Kamataka has released f crore Against the total releases off cr, the total fmancial progress so far is f {including share of Implementing Agency/Beneficiaries) The cumulative Financial progress isf 6142 crore Under Basic Service to Urban Poor SubMission, construction of27,925 dwelling units, with all the essential services, in 158 slums benefitting about 1,39,625 dwellers in both Bangalore and Mysore cities have been approved So far, Dwelling Units (DUs) have been completed and 948 DUsare under construction Reforms: JnNURM also mandates implementation of Urban Reforms for which the State has signed a MoA with Gol The State has taken necessary steps to implement reforms All the 23 State and City Level Reforms have been implemented Besides, 11 out of 12 Reforms related to Urban Transport have been implemented as mandated under the JnNURM and the remaining 1, namely Setting up of Traffic Information Management Control Centre, Mysore isunder implementation MoUD, Gol, has calibrated the Reforms implemented under the JnNURM and Kamataka scored (calibrated) 954% marks (Overall State Performance) and stands 2lld among all the states in the Country Transition Phase: Urban Infrastructure and Governance: So far, seven projects at an estimate off crore have been approved Of this, share of Goi is f crore and that of State Government is f 4869 crore The Gol has released f 6816 crore and Government of Kamatakahas released f 1217 crore The financial progress isf 632 crore till date ACA has been revised from f crore to f crore by Gol committed under AMRUT Urban Transport: Eight projects, at an estimate off crore, have been approved for Bengaluru and Mysuru Of this, share of Gol is f crore and share of State Government is f 4320 crore The Gol has released f 5400 crore and Government of Karnataka has released f 2160 crore Against the total releases off 7560 cr, the total financial progress so far is f 4225 (including share of Implementing Agency) The cumulative financial progress forfy is f 2879 crore

27 Sofar, 1depot construction atmspalya is completed Urban Transport Urban Infrastructure Scheme for Small and Medium Town (UIDSSMT): For 31 towns, 47 Projects at an estimate off crore have been approved Of this, share ofgoi is f crore and share of State Government is f 4631 crore The Golhas released f crore and the Government ofkarnatak:ahas released 2316 crore Against the total releases off cr, the total ftnancial progress so faris 4225 (including share of Implementing Agency) The cumulative financial progress for the FY isf 8987crore So far, procurement of buses for 9 cities and depot constructions in 10 cities/towns have been completed Total No of Buses sanctioned has been revised from 2095 to 1701 & No of Depots is revised from 24 to 23ACA for UT sector has been revised from f to f crore committed bygoi under AMRUT Funding from AMRUT for incomplete projects of Phase I & Transition Phase under JNNURM JNNURM Mission period has ended as on 31st March 2015 The Apex committee under AMRUT will replace the CSMC It will follow the same procedure under JNNURM forrelease of funds Gol Funding under AMRUT for Bangalore remains the same For Mysore and other towns I small cities, Goi share is revised from 80% to 60% Hence, Goi:GoK:ULB is revised from 80:10:10to 60:30: 10 R Solid Waste Management project for Bengalurn city The Government ofkamatak:a (GoK) with an objective to improve the quality of Solid Waste Management (SWM) services in the Bruhat Bengaluru Mahanagara Palike (BBMP) area has decided to establish solid waste processing, treatment and disposal facilities at an allocation of f 440 crore for this and towards establishment of landftll facilities at 6 quarry sites at an allocation off 101 cr Your Company has been nominated as the Nodal Agency The civil works are being implemented through Karnataka Rural Infrastructure Development Ltd (KRIDL) on deposit contribution basis Necessary clearances have been obtained Your Company has engaged consultants for the preparation ofdprs for treatment and disposal facilities under the Technical assistance component of Kamataka Municipal Reforms Project (KMRP) with the concurrence of the World Bank The solid waste processing, treatment and disposal facilities have been established & commissioned in all six sites and upgradation of the existing processing plant of M/sKarnatak:a Compost Development Corporation (KCDC) is in advanced stages of completion These plants can process about 2300 TPD of waste The state of the art facilities have been created with the many features being ftrst of its kind in the country and

28 would be a model for other ULBs All necessary waste processing equipments and machineries, waste handling vehicles have been procured National Institute for Inter disciplinary Sciences and Technology(NIIST) has been engaged for providing tailor made solution for controlling odour inside and outside the sheds Apilot odour control system at KCDC is in advanced stages of completion In order to operate and maintain these plants, private operators have been appointed through a Performance Based Management Contract for carrying out daytoday operations in an efficient and effective manner Also, third party consultants are appointed formonitoring the O&M operations I SMART CITY MISSION The Government of India has launched Smart City Mission on 25th June 2015, with the objective of providing core infrastructure, a clean and sustainable environment and application of'smart' Solutions, in a sustainable and inclusive development model that is replicable The mission will cover 100 cities and its duration will be five years (FY to FY ) Eachcitywill get 1000 Cr over aperiodof5 years Following 6 Cities are considered under the mission: Mangaluru, Belagavi, Shivamogga, HubballiDharawad, Tumakuru, anddavanagere In Round 1 competition, MoUD has selected Smart City Proposal of Davanagere & Belagavi and has released 194 Cr per City State Government has allocated 400 Cr in its Budget estimate As per the mission guidelines, SPV in the selected cities are incorporated to implement the smart city projects These SPVs are registered under Companies Act 2013 as Public Limited Company Further, MoUD has also considered Bengaluru to participate in Round 2 competition, Bengaluru, Hubballi Dharwad, Mangalore; Shivamogga & Tumakuru have submitted their smart city proposals on 30th June 2016 J Implementation ofwater Supply in9towns ofkarnataka Government of Karnataka had accorded sanction for implementing water supply and underground drainage in 16 towns at an estimated cost of crores These towns are Gajendragad, Naregal, Mundargi, Kampli, Tekkalkote, Kottur, Kamalapura, Mudagal, Bankapur, Mahalingapura, Terdal, Kudachi, Alnavar, Shiralkoppa, Mulki and Molakalmuru divided into three packages Funding the project is proposed from Government grants to the extent of 50% and remaining 50% through borrowing from domestic market Repayment of borrowing would be through securitization of SFC devolution/ beneficiary contribution/general revenues of ULBs Three Consultancy firmshave been appointed Out of the 16towns, DPRs ofwater Supply for 11towns have been prepared andtechnical Sanction has been accorded forthe DPRs of 10 towns DPRs for the balance 5 towns were not prepared as the projects were already

29 taken up by KUWS&DB (Alnavar, Naregal, Bankapur & Gajendragad) and by RDPR (Molalkalmur) With a view to bring in synergy and to avoid duplication of work, the Empowered Committee vide, its 2nd meeting held on resolved to transfer the entire project to KUWS&DB The said decision was communicated to the Government for issuance of Government order However, some observations were noted regarding the constraints of KUWSDB to take up the project Hence a meeting was held on , under the chairmanship of the Additional Chief Secretary, UDD, GoK, keeping in view the necessity of the project and of the fact that there has been substantial delay in issuance of GO, suggested KUIDFC to take over the implementation work in 11 towns which are not getting covered under KUWS&DB and RDPR Itwas also instructed to bring to the notice of the Empowered Committee Itwas also instructed to bring to the notice of the Empowered Committee The subject was placed before the 3rd meeting of the Empowered Committee, held on The Empowered Committee resolved to drop the 7 towns viz, Alnavar, Naregal, Bankapur, Gajendragad, Molalkalmur, Kudachi & Kamlapura and directed KUIDFC to take up implementation ofwater Supply Schemes only inthe balance 9 towns viz, Mundargi, Mulki, Kampli, Tekkalakote, Kottur, Mahalingapura, Teredal, Mudagal & Shiralkoppa by inter allocating the funds from one component to another or from one town to another and that the said allocation of funds shall be well within the overall allocated amount of cr Cabinet note has been submitted to Government for approval K Megacity Scheme (MCRF) Centrally sponsored Megacity Scheme, which was launched by Government of India during 1995,has been closed during year 2005 Scheme guidelines provide for creation of Revolving fund Megacity Revolving Fund (MCRF) out of repayment of loans and interest earnings under the Mega City Scheme to be managed by your Company MCRF has been operative from The corpus of the Megacity Revolving Fund as on is crores The cumulative sanction under MCRF is about crores for 33 projects estimated to cost crores Nine projects at a cost of crores have been completed Eight projects at an estimated cost of crores are in progress A total amount of crores has so far been released During the year , Crores has been disbursed as loan to different implementing agencies (la's) and crores has been collected as repayments towards principal and interest from the las L Karnataka Water Sanitation and Pooled Trust Fund (KWSPFTrust) Government of Karnataka, in order to promote congenial urban environment, spur economic growth, has accorded approval for implementation of Chief Minister's Small and Medium Development Programme (CMSMTDP) in 211 ULBs at an estimated cost of 1454 crores Further, the Government of Karnataka has accorded approval for

30 implementation of Chief Minister's Special Grant of f 100 crore for each City Corporation under Nagarothana Programme to Grade 2 City Corporations in the State of Kamataka The Sources of financing of these projects is by way of SFC grants, additional budget allocation and loans through Karnataka Water and Sanitation Pooled Fund Trust (KWSPF Trust) a Government ofkarnatak:a Trust Your Company as Fund Manager of KWSPF Trust has raised funds through market borrowings It had borrowed f 600 crores from banks under Phase I of CMSMTDP, has availed f crores out of f 500 crores under Phase II CMSMTDP and released these funds to Directorate of Municipal Administration (DMA) Entire fund of f 700 crores under Phase I of Nagarothana is financed by the Govt of Karnataka Under Nagarothana Phase II, your Company has availed f crores and released the same to DMA M City Cluster Development City Cluster Development (CCD) is an urban led strategy towards promotion of economic and social development under which closely located areas of human settlements are linked together functionally, structurally and spatially to form an integrated urban region Your Company has conceptualized CCD around Bengaluru on the lines of guidelines of Asian Development Bank's City Cluster Development and the Government of Karnataka has accorded approval for the project on The estimated cost of the project is f 2100 crores including ADB assistance off 1400 crores Your Company has been nominated as the nodal and coordinating agency of Government of Karnataka for this project Objective: To spur economic activity around Bengaluru through planned development in Bangalore Metropolitan Region(BMR) along with structural & administrative reforms Components: i) Upgradation of existing level of infrastructure in the cluster towns and boosting economic potential ofthe clusters ii) Providing seamless transport to improve connectivity to Bengaluru and within the cluster towns iii) Reforms Strengthening Regional Planning Institutions & Capacity Building Programme outputs i) Strengthened economic planning andurban management in BMR; ii) Improved sustainable urban economic infrastructure developed in selected BMR clusters; iii) Improved business enabling environment; iv) Improved seamless transport and information communication network to improve

31 connectivity to Bangalore and within the Cluster Towns; v) Innovative financing by tapping land resources development, private sector participation and convergence of Government investments; Status of the Project In the 1" 1 Empowered Committee meeting held on clusters were shortlisted for further feasibility studies (Devanahalli, Dabbaspet, Bidadi, Harohalli, NelamangalaandDoddaballapur) Tripartite Portfolio Review Meeting (TPRM) for ADB assisted project was conducted by DEA on atnew Delhi to review the progress of the project Phase IB Final Report submitted by PPTAconsultants (M/s Crisil) inaugust 2015 In the 2ndEmpowered Committee meeting held on , Devanahalli cluster was recommended for investment under the project EC also recommended to prepare basic infrastructure plan for the other 5 short listed clusters and to seek cabinet approval ADB mission visited between 0204 December 2015 Finance Department, GoK communicated to Department of Expenditure Goi about withdrawal of the concurrence of the Finance Department for issuing the Debt Sustainability Certificate from Government of India for implementation of ADB assisted Bangalore City Cluster Development (BCCD), vide letter No FD 21 PMU 2012 dated A meeting under the Chairmanship of Additional Chief Secretary, UDD was held on to discuss the way forward in view of the letter offinance Department GoK ACS, UDD suggested tp place the subject before the Cabinet A revised draft cabinet note in this regard is submitted to UDD on for placing it before the cabinet for a decision N HERITAGE CITY DEVELOPMENT AND AUGMENTATION YOJANA (HRIDAY) at Badami HRIDAY is a Government of India funded scheme As per GONo UDD 12 PRJ 2015 dated , KUIDFC is nominated as nodal agency for handling all issues relating to Heritage City Development And Augmentation Yojana (HRIDAY) inthe State Badami is one of the cities selected under the project Status of the Project HRIDAY National Empowered Committee (HNEC) accorded approval for the following projects: Sullage treatment plant in Tattkote village in Badami (on )

32 Integrated development and improvement of arterial roads, transportation infrastructure androadsignage(on ) Improvement of Historic Vernacular Building Facade and Streetscape (on ) Solidwaste management (zero waste management)( on ) IV Status of Revolving Fund &Loan Repayments: Government of Karnataka has issued directions through various Government orders for creation of Revolving Fund out of repayment of loan component under Externally Aided Projects (EAPs) and Centrally Sponsored Scheme ofmegacity Scheme (MCS) & Jawaharlal Nehru National Urban Renewal Mission (JnNURM) The status ofrevolving Fund and Loan Repayment & Outstanding Loan as on is furnished below: (i) Status of Revolving Fund as on (incrores) 1UIDF Projects Balance as on Repayments during 1516 Earnings on Redeployment during 1516 Funds Utilized during 1516 Balance as on a KUIDP b KUDCEMP c KMRP d JNNURM MCRF TOTAL 1, (ii) Loan due as on in Crores) Sl No Name of the Project Balance as on Demanded during 1516 Repayments during 1516 Dues as on Principal Interest Total Loan yet to fall due 1 KUIDP KUDCEMP KMRP JNNURM MCRF TOTAL 1, ,54912

33 V ComputerizationinKUIDFC: Computerization in your Company commenced during the year 2000 with the implementation ofelectronic Data Management System (EDMS), developed using Lotus Notes, in the Head Office This also included office automation applications like Leave, Material Indent, resource reservation for meetings and conferences, eattendance, employee data base, etc In order to streamline the infrastructure available in the Company, IT Asset Management Policy has been implemented Your Company has also deployed Document Management System for closed files/documents which is under implementation and preparing a roadmap for upgrading its IT systems (application and infrastructure) to meet current and future requirements of the Company Further, action has been taken to computerise all the divisions in the organization In this regard, IT section has recently developed inhouse applications like Project Monitoring Tool, Bank Guarantee Monitoring Application Asset Management Tool, Investment Application for Finance section, Training Report Application fortraining and capacity building, Resource Reservation Application to avoid duplicate entry in the existing software and also have developed and deployed Company's new website To strengthen and guide the development of IT infrastructure and facilities, a Technical Advisory Committee (TAC) consisting experts from NIC, IIITB, STPI & senior officers of the Company has been constituted The IT infrastructure of your Company is being reviewed and upgraded periodically keeping in view the overall computerization requirements of the Company VI Report on implementation ofrtiact for the year Company updates its suomoto declaration u/s 4(1)(a) & 4(1)(b) of the RTI Act, 2005 every year and as and when there are changes in the organisation Monthly RTI reports are also published on its website For the year , 146RTI requests were received, 9 of which were from BPL citizens The RTI applications have been disposed within the stipulated time limit Two appeals were received and one appeal disposed within the stipulated time limit Standard procedures pertaining to itsprojects is also published on its website VII (i) Human Resource Management: Your Company, considering human resource as its most valuable resource, has been deploying qualified and experienced personnel from various sources to implement projects Your management has been making all efforts to sharpen the knowledge and skillsneeded to effectively perform their functions through trainings a) Conservation ofenergyand Technology Absorption: The provisions of Section 134 of the Companies Act, 2013, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, relating to furnishing information on energy conservations, R & D activities undertaken by the

34 SlNo Incoming Outgoing 1 Sri Ritesh Kumar Singh, IAS, Secretary (Expenditure) to Govt Finance Department, GoK, Vidhana Soudha, Bengaluru 01 2 Sri TM Vijay Bhaskar, IAS, Chairman, B W S S B, Cauvery bhavan, K G Road, Bengaluru 3 Sri Shambhu Dayal Meena, IAS Principal Secretary to Govt, Housing Department, Vikasa Soudha, Bengaluru 01 Sri ISN Prasad, IAS, Principal Secretary to Govt Finance Department, GoK, Vidhana Soudha, Bengaluru 01 Sri Anjum Parwez, Chairman, B W S S B, Cauvery bhavan, K G Road, Bengaluru Sri Sanjiv Kumar, IAS, Principal Secretary to Govt, Housing Department, Vikasa Soudha, Bengaluru 01

35 4 Sri Tushan Giri Nath, las, Metropolitan Commissioner, BMRDA, Bengaluru 5 Sri TM Vijay Bhaskar, las, Additional Chief Secretary to Govt Urban Development Department, 4th Floor, Vlkasa Soudha, Bengaluru 6 Sri Pankaj Kumar Pandey, las Managing Director, KUIDFC, Bengaluru 7 Sri PonnurajV, las, Managing Director, KUIDFC, Bengaluru 8 Sri Syed Hasim No 171, "D"block, 9th Cross, Rashad Nagar, Benagluru Sri Venkataramu, Byrathi Village, Kothanur Post, Bengaluru Sri Dowlat Baig No 710, 4th Cross, Sathgalli Layout, Mysuru Sri KR Srinivas, las, Metropolitan Commissioner, BMRDA, Bengaluru Sri DSatya Murty, las, Additional Chief Secretary to Govt Urban Development Department, 4th Floor, Vikasa Soudha, Bengaluru Sri Darpan Jain, las Managing Director, KUIDFC, Bengaluru Sri Pankaj Kumar Pandey, las Managing Director, KUIDFC, Bengaluru 11 Sri TM Vijaya Bhaskar, las, Additional Chief Secretary to Govt, Urban Development Department 4th Floor, Vikasa Soudha, Bengaluru 12 Sri Shekharappa BS, las Metropolitan Commissioner, BMRDA Bengaluru Sri Mahendra Jain, las, Additional Chief Secretary to Government, Urban Development Department 4th Floor, Vlkasa Soudha, Bengaluru Sri Tushar Giri Nath, las, Metropolitan Commissioner, BMRDA, Bengaluru 13 Sri V Ponnuraj, las, Sri TK Anil Kumar, las, Secretary to Govt, (M & UDA), SecretarytoGovt,(M& UDA), Urban Development Dept Vikasa Soudha, Bengaluru Urban Development Dept, Vlkasa Soudha, Bengaluru 14 Dr Vishal R, las Director to Municipal Administration, VVTowers, Bengaluru Dr N Manjula, las, Director to Municipal Administration, VV Towers, Bengaluru Four Board Meetings were held by the Company during the Financial year

36 (e) DIRECTORS RESPONSIBILITY STATE:MENT: Your Directors confirm that: 1 In the preparation of Annual Accounts, the applicable accounting standards have been adhered to along with proper explanation relating to material departures 2 The accounting policies are consistently applied and reasonable, prudent judgment and estimates are made so as to give a true and fair view of the state of affairs of the Company atthe end of the Financial Year 3 The Directors have taken proper and sufficient care towards the maintenance of the adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities 4 TheAnnual Accounts have been prepared on a going concern basis 5 The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws andthat such systems were adequate and operating efficiently (f) ACKNOWLEDGMENTS: Your Directors thank the Government of India, particularly the Ministry of Urban Development and the Ministry of Finance, the State Government, especially the Urban Development Department and the Finance Department, the Chief Secretary to Government, Additional Chief Secretary to Government ofkamataka & Chairman of the Empowered Committees/Mega City Sanctioning Committee for their continued support in the conduct of the Company's business Your Directors also thank the Asian Development Bank (ADB), the World Bank, Controller of Aid, Accounts & Audit (CAAA), State Bank of Mysore, Canara Bank Corporation Bank, Vijaya Bank, IDBI Bank, Syndicate Bank and Union Bank of India for all the support being extended during implementing the projects Further, Your Directors thank the implementing agencies viz Bruhat Bengaluru Mahanagara Palike, Kamataka Urban Water Supply & Drainage Board, Bengaluru Water Supply & Sewerage Board, Mangalore City Corporation, Bengaluru Development Authority, Kamataka State Road Transport Corporation, Bengaluru Metropolitan Transport Corporation, Kamataka Slum Development Board, Mysore City Corporation, Mysore Urban Development Authority, HubliDharwad Municipal Corporation, Belgaum, Gulbarga & Bellary Corporation, Department of Tourism, Heritage Department and other LAs for their support in the implementation of the projects The employees of the Company have been responding to the challenges posed during the implementation of projects and programmes competitively Your Directors take this opportunity to place on record their appreciation for the sincerity and hard work of all the employees of the Company Date: 17thAugust 2016 Bengaluru for and on behalf of the Board of Directors (Sd/) (Srivatsa Krishna) Chairman

37 Sl Name and Description of main products / No services 1 Nodal Agency for Imp lementation of Urban Infrastructure Dev elopments Projects in Karnataka NIC Code of the product % to total turnover of the company Sl No Name and Address of the Company CIN/GLN CIN/GLN Holding/ Subsidiary/ Associate % of shares held Applicable Section 1 2

38 Category of Shareholders A Promoters (1) Indian No of Shares held at the beginning of the year Demat Physical Total % of Total Shares No of Shares held at the end of the year Demat Physical Total % of Total Shares % Change during the year a) Individual/HUF b) Central Govt c) State Govt % % (s) d) Bodies Corp e) Banks / FI f) Any Other % % Subtotal (A) (1) : (2) Foreign a) NRIs Individuals b) Other Individuals c) Bodies Corp d) Banks / FI e) Any Other Subtotal (A) (2): Total shareholding of Promoter (A) = (A)(1)+(A)(2) % %

39 B Public Shareholding 1 Institutions a) Mutual Funds b)banks/fi c) Central Govt d) State Govt(s) e) Venture Capital Funds t) Insurance Companies g) Fils h) Foreign Venture Capital Funds i) Others (Asper Annexure A) Subtotal (B)(l): % % % % 2Non Institutions a) Bodies Corp i) Indian ii) Overseas b) Individuals i) Individual shareholders holding

40 nominal share capital upto Rs 1 lakh ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh c) Others (specify) Subtotal (B)(2): Tota l Public Shareholding (B)=(B)(1)+ (B)(2) C Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C) (ii) Shareholding of Promoters Sl No Shareholder s Name % % % % Shareholding at the beginning of the year No of Shares % of total Shares of the company % of Shares Pledged / encumbered to total shares Share holding at the end of the year No of Shares % of total Shares of the company % of Shares Pledged / encumbered to total shares % change in share holding during the year 1 State % % Government of Karnataka Total % % (iii) Change in Promoters' Shareholding (please specify, if there is no change) Sl No At the beginning of the year Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase / decrease (eg allotment / transfer / bonus/ sweat equity etc): At the End of the year Shareholding at the beginning of the year No of shares % of total shares of the company Cumulative Shareholding during the year No of shares % of total shares of the company No Change in Promoter s shareholding during the Financial Year

41 Sl No For Each of the Top 10 Shareholders At the beginning of the year Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (eg allotment / transfer / bonus / sweat equity etc): At the End of the year ( or on the date of separation, if separated during the year) Shareholding at the beginning of the year No of shares % of total shares of the company Refer Annexure B Cumulative Shareholding during the year No of shares % of total shares of the company Indebtedness at the beginning of the financial year Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due Total (i+ii+iii)

42 Change in Indebtedness during the financial year Addition Reduction Net Change Indebtedness at the end of the financial year i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due Total (i+ii+iii) VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A Remuneration to Managing Director, Wholetime Directors and/or Manager: Sl No Particulars of Remuneration 1 Gross salary Name of MD/WTD/ Manager Total Amount (a) Salary as per provisions contained in section 17(1) of the Incometax Act, 1961 (b) Value of perquisites u/s 17(2) Incometax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income tax Act, Stock Option 3 Sweat Equity 4 Commission as % of profit others, specify 5 Others, please specify Total (A) Ceiling as per the Act Not applicable Not applicable

43 Sl No Particulars of Remuneration Independent Directors Name of Directors Total Amount Fee for attending board / committee meetings Commission Others, please specify Total (1) Other NonExecutive Directors Fee for attending board / committee meetings Commission As per Annexure C 14,00000 Others, please specify Total (2) Total Managerial Remuneration Overall Ceiling as per the Act Sl No Particulars of Remuneration 1 Gross salary CEO Key Managerial Personnel Company Secretary CFO Total (a) Salary as per provisions contained in section 17(1) of the Incometax Act, 1961 (b) Value of perquisites u/s 17(2) Incometax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income tax Act, Stock Option 3 Sweat Equity 4 Commission as % of profit others, specify 5 Others, please specify Total

44 Vll PENALTIES I PUNISHMENT/ COMPOUNDING OF OFFENCES: Type Section of the Companies Act Brief Description Details of Penalty I Punishment/ Compounding fees imposed Authority [RD /NCLT/ COURT] Appeal made, if any (give Details) A COMPANY Penalty Punishment Compounding B DIRECTORS Penalty Punishment Compounding C OTHER OFFICERSIN DEFAULT Penalty Punishment Compounding FORAND ON BEHALF OF TIIE BOARD Sdi Sri Veluswamy Ponnuraj, las Managing Director Sdi Sri Srivatsa Krishna, las Chairman Place: Bengaluru Date: September 3, 2016

45 Sl No Name of the public Shareholders Number of Shares held at the beginning of financial year (Nominal value share: INR 100/ each) Number of shares held at the end of financial year (Nominal value share: INR 100/ each) 1 Principal Secretary, Housing 1 1 Department 2 Commissioner, Bangalore 1 1 Development Authority 3 Principal Secretary, Finance 1 1 Department 4 Chairman, Bangalore Development 2,00,001 2,00,001 Authority 5 Chairman, BWSSB Commissioner, BMRDA Dy Director, Town Planning, 1 1 BMRDA 8 Additional chief secretary, GOK Principal Secretary, Urban 1 1 Development Dept 10 SecretaryIIUrban Development 1 1 Department 11 Secretary, Finance Department Commissioner, BBMP 1 1 Total 2,00,012 2,00,012 % change during the year

46 Sl No Date of transaction Opening Balance Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus/ sweat equity etc): Closing Balance Opening Balance Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus/ sweat equity etc): Closing Balance Opening Balance Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus/ sweat equity etc): Nature of Nameofthe transaction shareholders ANNEXUREB Principal Secretary, Housing Department Shareholding at the beginning of the year No of shares % oftotal outstanding shares of the Company % Cumulative shareholding during the year No of shares Commissioner, Bangalore Developmen Authority % % oftotal outstanding shares of the Company % Principal Secretary, Finance Department % %

47 Closing Balance Opening Balance Chairman, Bangalore Development Authority 2,00, % % Date wise I ncrease / Decrease in Promoters Share holding during the year specifying the reasons for increase / decrease (eg allotment / transfer / bonus/ sweat equity etc): Closing Balance 2,00, % Opening Balance Chairman,BWSSB % Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase / decrease (eg allotment / transfer / bonus/ sweat equity etc): Closing Balance % Opening Commissioner, Balance BMRDA % Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase / decrease (eg allotment / transfer / bonus/ sweat equ ity etc): Closing Balance %

48 Opening Balance Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus/ sweat equity etc): Closing Balance Additional secretary, GOK chief % % Opening Balance Principal Secretary, Urban Development Department % Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus/ sweat equity etc): Closing Balance Opening Balance SecretaryITUrban Development Department % % Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease(eg allotment I transfer I bonus/ sweat equity etc): Closing Balance %

49 Opening Balance Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus/ sweat equity etc): Closing Balance Opening Balance Date wise Increase I Decrease in Promoters Share holding during the year specifying the reasons for increase I decrease (eg allotment I transfer I bonus! sweat equity etc): Closing Balance Secretary, Finance Department % Commissioner, BBMP % % % FORAND BEHALF OF BOARD Sdi Sri Veluswamy Ponnuraj, las Managing Director Sd/ Sri Srivatsa Krishna, las Chairman Place: Bengaluru Date: September 3, 2016

50 ANNEXUREC Karnataka Urban Infrastructure Development & Finance Corporation Limited Statement showing the details of Sitting Fee Payment to Directors for FY SL No Name of the Director 1 Sri LVNagarajan, las, 2 Sri Srivatsa Krishna,lAS 3 Sri ISNPrasad, las 4 Sri TKAni1 Kumar, las 5 Sri TM Vijay Bhaskar, las 6 Sri D Satya Murty, las, 7 Sri Shambhu Dayal Meena, las, 8 Sri Anjum Parwez, las 9 Sri Ritesh Kumar Singh, las, 10 Dr N Manjula, las, Amount paid inboard Meetings NoJDate 70/ / / / Audit Committe emeeting held on Grand Total Total

51 SNR & Company Chartered Accountants

52 and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditor's judgment; including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those risk assessments; the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, aswell as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements OPINION In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2016, and its profit and its cash flows forthe year ended on that date Emphasis of Matter The Company; as a nodal agency of Government ofkamatak:a (hereinafter referred to as 'GoK') for implementation, monitoring and management of funds of external aided projects and centrally sponsored scheme, has adopted and structured its accounting of expenses & receipts on actual basis in respect to Jawaharlal Nehru National Urban Renewal Mission (JnNURM) project The company functions as a fund manager for implementation of the projects in the state ofkamataka The funding pattern, while fmalizing the project, includes Grant and Loan component to the Urban Local Bodies (ULBs) I Government agencies where the projects are implemented The contractors are appointed by the respective commissioners and projects implemented by the ULBs/Agencies Based on the progress ofthe work on the projects and certification by the concerned agencies, disbursements are made to the ULBs I Government agencies The operational expenses/costs and connected revenue receipts/accretions are charged to the project concerned or taken to the appropriate revolving funds; where beneficial holding rests with GoK In the light of the policy and accounting method adopted by the company, the company is technically left with only operating funds to carry out its allocated nodal functions The corporate expenses are charged and set off against the budgetary grants allocated by the GoK, leaving "noprofit no loss" status in its statement ofprofit & Loss The short term and long term assets and liabilities, except corporate held assets, are held onbehalf ofgok In the light of the position stated above, the applicability of various standards and representation of figures in financial statements are to be seen and read accordingly, though in

53 variance with provisions of Accounting Standard No 9 with respect to Note no 17 In our opinion and to the best of our knowledge and according to the explanations given to us, the annexed fmancial statements together with notes forming part thereof give the information required by the Act in the manner sorequired and subject to: a) The operational fund (interest free) requirement of Kamataka Water and Sanitation Pooled Fund (Trust) (KW&SPF) amounting to 1,19,37,329 / (previous year 20,79,18,504/) is initially met through the allocation from Kamataka Urban Infrastructure and Finance Corporation Limited in the course normal operation and no specific directive obtained from the Government However the balance receivable towards this transfer to KW&SPF as atthe yearend was nil b) Note no 17regarding the technical and management support, consultancy fees under JNNURM project, debited to Statement of Profit & Loss for the year and the reimbursement of the expenditure from GOI is accounted in the year of receipt The amount of such expenditure debited pending reimbursement is 735 lakhs (previous yearf4824lakhs) c) Note no 20 regarding interest on the loan component provided to the project's agencies and the reflection of the same as due payable to GoK and receivable from Implementing Agencies d) Note no 27 regarding adjustment of advances in respect of externally aided projects, given to Implementing Agencies, NGOs, and others, being accounted on receipt of utilization report submitted by the respective agencies, in terms of the extant guidelines from the funding agencies Our opinion is not qualified in respect of above matters REPORTONOTHERLEGALANDREGULATORYREQUIREMENTS 1 As required by the Companies (Auditor's Report) order, 2016 ('the Order') issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure I a statement on the matters specified in the paragraph 3 and4 of the Order, to the extent applicable 2 The Comptroller & Auditor General of India has issued direction indicating the areas to be examined in terms of sub section (5) of section 143 of the Companies Act 2013, compliance of which are set out inannexure II 3 As required by Section 143(3) of the Act, we report that: a We have sought and obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books

54 c The Balance Sheet, the Statement ofprofit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account d In our opinion, the aforesaid standalone fmancial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 e According to Notification General Circular No 8/2002:No CL V dated 22/03/2002 vide Para 8 (ii) of Department of Company Affairs, the provisions of section 164 of Companies Act, 2013 on the disqualification of the directors isnot applicable to this company f With respect to the adequacy of internal financial controls over fmancial reporting of the Company and the operating effectiveness of such controls, refer to our separate report inannexure III g With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i The Company has disclosed the impact of pending litigations on its financial position in its financial statements in Note No 28 to the Standalone financial statements n The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on longterm contracts including derivative contracts, if any 111 There were no amounts which were required to be transferred, to investor education and protection fund by the company For SNR & Company Chartered Accountants ICAI Firms Registration No: N Sd/ Ritesh Sharma Partner ship No Bengaluru Date :17thAugust, 2016

55 Annexure Ito the Independent Auditors' Report The Annexure I referred to in our Independent Auditor's report to the members of the company on the financial statements for the year end 31March In respect of the fixed assets of the Company: a The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets b The company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years In accordance with a regular programme of verification fixed assets, certain assets were verified during the year and no material discrepancies were noticed on such verification In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets c According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name ofthe Company 2 In respect of the inventories of the Company In our opinion and according to the information and explanations given to us, the company's primary function is that of fund manager for implementation of the projects Accordingly, it does not hold any physical inventories Thus paragraph 3(ii) of the Order isnot applicable to the Company 3 The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189oftheAct 4 In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans and investments made 5 In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public Therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company 6 The Central Government has not prescribed the maintenance of cost records under Section 148(1)of theact, for any of the services rendered by the Company 7 According to the information and explanations given to us, and on the basis of our examination of the records of the Company, there are no material dues of duty of customs and cess which have not been deposited with the appropriate authorities on account of any dispute However, the following dues of income tax and service tax have not been deposited by the company on account of dispute:

56 Nature of the statue Service Tax Income Tax Act, 1961 Nature of dues AmountiNR Period to which Forum where amount relates dispute is pending Service Tax and 3,34,13,200J< 1 > FY to FY CESTAT, penalty plus penalty Bangalore Income Tax 3,57,899/ AY Commissioner of Income Tax (Appeals}I, Bangalore (1) Tbemmpllll)'lwiJqJpNiedopiDotllleamouatdilpall>daadaotdepolited a The Company have generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax and Value Added Tax, Service Tax, and other material statutory dues applicable to it with the appropriate authorities b There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income Tax, Sales Tax and Value Added Tax, Service Tax (subject to above), and other material statutory dues in arrears as at March 31, 2016 for a period of more than sixmonths from the date they became payable 8 In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a bank during the year and did not have any amount outstanding to financial institutions or debenture holders 9 According to the information and explanations given to us, the company did not raise any money by way of initial public offer (including debt instruments) and term loans during the yearaccordingly, paragraph 3(ix) of the Order isnot applicable 10 To the best of our knowledge and belief and according to the information, no fraud by the Company or on the Company was noticed or reported during the year 11 According to the information and explanation given to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with requisite approvals mandated by the provisions ofsection 197read with Schedule VoftheAct 12 Inour opinion and according to the information and explanation given to us, the Company is not a Nidhi Company Accordingly paragraph 3(xii) of the Order is not applicable 13 According to the information and explanation given to us and based on our examintion of the records of the Company, transactions with related parties are in compliance with Sections 177and 188of theact 14 According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year

57 15 According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any noncash transactions with directors orpersons connected with him 16 The Company is not required to be registered under Section 45IA of the Reserve BankoflndiaAct 1934 For SNR& Company CharteredAccountants ICAIFirmsRegistrationNo: N Sd/ Ritesh Sharma Partner ship No Bengaluru Date :17thAugust, 2016

58 Annexure II Directions indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts for the year issued by the Comptroller & Auditor General oflndia under Section 143(5)of the Companies Act, If the Company has been selected for disinvestment, a complete status report in terms of valuation of Assets (including intangible assets and land) and Liabilities (including Committed & General Reserve) may be examined, including the mode and present stage of disinvestment process There isno disinvestment proposed in the company 2 To report whether there are any cases of waiver I write off of debts /loan interest etc, if yes, the reason thereof, and the amount involved There are no cases of wavier Iwrite off of debts/loan interest 3 Whether proper records are maintained for inventories lying with third parties & assets received as gift from Government or other authorities The Company does not maintain any Inventories and no assets are received as gifts from Government 4 A report on agewise analysis of pending legal/ arbitration cases, including the reasons of pendency and existence I effectiveness of a monitoring mechanism for expenditure on alllegal cases (foreign and local) may be given There are legal casespending against the Company, by unsuccessful contractors having filed cases against las and Company is made a party to such cases The decisions in the concluded casespronounced so far, have been in favour of the Company The Company has designated officers handling the legal cases Details oflegal cases and the dates of hearing with due dates and fees with approvals are maintained The progress and status of cases are reviewed by the Board in its meetings Details of cases pending are as in Annexure A 5 Whether the Company has taken adequate measures to prevent encroachment of idle land owned by it Whether any land of the Company is encroached, under litigation, not put to use or declared surplus? Details may be provided According to the information and explanations given to us, there are no cases of encroachment The Leasehold land held by the company which is leased from BDA is used for construction ofurban Infrastructure Bhavan for its official use

59 6 Whether system of monitoring the execution of works visavis the milestone stipulated inthe agreement is in existence and the impact of cost escalation, ifany, revenues/losses from contracts, etc, have been properly accounted for in the books The Company is a Nodal Agency for the Centrally Sponsored Schemes and Externally Aided Projects The projects are governed by respective scheme I donor bank guidelines Government of Karnataka has appointed KUIDFC as the Nodal Agency for these Schemes/Projects The Implementing Agencies I ULBs are the agencies who tender outthe works Tenders Floated have inbuilt mechanism for milestone based monitoring of implementation The agreements also have variation clause During implementation, based on the actual requirement, the variations are approved under the respective contracts Cost escalations are recorded inthe respective work/contract There are no revenue/loses from contracts since the beneficiaries are ULBs I Government Agencies The Government provides budgetary support for these schemes I projects Hence the revenue/loses arerecorded in the Government Account with necessary approvals In respect of releases for Work Bills, RA bills are certified, before release of payments, by the Project Manager and Commissioner/Chief Officer of the respective ULB The company makes payments for such RA bills through RTGS mode The procedure presently being followed is satisfactory and adequate This procedure is generally followed consistently The Company recovers Liquidated Damage from the contractors in cases of delay We are informed that whenever LD is not levied appropriate approval from competent authority is obtained Advances paid as per the terms of the Contract, are adjusted against running bills 7 Whether funds received/receivable for specific schemes from central/state agencies were properly accounted for/utilized? List the cases of deviations The funds received/receivable for specific schemes from central/state agencies have been properly accounted Separate books of accounts are maintained in respect of different Schemes I projects Accounts are maintained using Tally Accounting Software However, there are instances where inter fund transfers were made and the same were made good to the respective accounts at a later date All funds are received for scheme/projects from the Government In case of delay in release of funds from the Government, temporary transfers of funds inthe scheme/project is made and on receipt of funds from the Government, the same were made good to the respective account The Company has not granted any large loans to any PSU, whether related or not related to the business of the company However the company is a fund manager for Karnataka water & sanitation pooled fund (KW&SPF) (TRUST UNDER THE

60 INDIAN TRUSTS ACT, 1882) (Government of Kamataka of Trust) The company provides operating fund (interest free) on need basis and no specific directive is obtained from the Government for the same During the year an amount of 1,19,37,329/ was provided to the Trust on temporary basis However, amount receivable from the KW&SPF at the year end on this account is nil 8 Confirmation of balances of trade receivables, trade payables, term deposits, bank accounts and cash obtained Confirmation ofbalances of Banks is available with the company Cash confirmations (imprest account) are made available to audit Given the fact that the company does not have any sales, it has no trade receivables/ trade payables on its own account Most of the receivables/payables with respect to works contract are monitored through RA bill The Loans to las I ULBs are accounted based on the Government Orders and demand notices are served to the periodically to the respective agencies which are Government Agencies Mobilisation Advances under the contracts are against Bank Guarantee as per contract agreement terms under the respective project 9 The cost incurred on abandoned projects may be quantified and the amount actually writtenoff shall be mentioned According to the information and explanations given to us, there are no abandoned projects There are cases of termination of contract based on non performance of the contractors as per the terms of the contract Necessary penalties and LD and recoveries aremade in such contracts as per the terms of contract These arethe works awarded by the las /ULBs There are no instances of writtenoff in these contracts For SNR& Company CharteredAccountants ICAIFirmsRegistrationNo: N Sd/ Ritesh Sharma Partner ship No Bengaluru Date :17thAugust, 2016

61 Annexure illto the Independent Auditor's Report Report on Internal Financial Controls under Clause (i) of subsection 3 of Section 143of the CompaniesAct, 2013 ('theact') We have audited the internal fmancial controls over financial reporting of Karnataka Urban Infrastructure Development & Finance Corporation {'the Company') as of31 March 2016 in conjunction with our audit of the standalone fmancial statements of the Company for the year ended on that date Management's Responsibility for Internal Financial Controls The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over fmancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India {'ICAI') These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and timely preparation of reliable financial information, asrequired under Companies Act, 2013 Auditor's Responsibility Our responsibility is to express an opinion on the Company's internal fmancial controls over financial reporting based on our audit We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the 'Guidance Note') and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, and both issued by the Institute of Chartered Accountants of India Those Standards and the Guidance Note require that we comply with ethical requirements andplan andperform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal fmancial controls system over financial reporting and their operating effectiveness Our audit of internal financial control over fmancial reporting included obtaining an understanding of internal fmancial controls over fmancial reporting, assessing the risk that material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk The procedure selected depends on the auditor's judgement, including the assessment of the risk of material misstatement of the financial statements, whether dueto fraud or error We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls over financial reporting

62 Meaning oflntemal Financial Controls overfinancial Reporting A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the generally accepted accounting principles ACompany's internal financial control over financial reporting includes those principles and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditure of the Company are being made only in accordance with authorizations of the management and directors of the Company; (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements Inherent Limitations of Internal Financial Controls Over Financial Reporting Because of inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected Also, projections of any evaluation of internal financial controls over fmancial reporting to future periods are subject to the risk that the internal financial control over fmancial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate Opinion In our opinion, the Company has, in all material respects, an adequate internal financial controls system over fmancial reporting and such internal fmancial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants oflndia For SNR& Company CharteredAccountants ICAIFirmsRegistrationNo: N Sd/ Ritesh Sharma Partner ship No Bengalurn Date :17thAugust, 2016

63 AnnexureA Legal status pending ofkuidfc as on 31/03/2016 Amountin Sl No Suit Number In the Court of: Between Claim 1 OSNo 202/2012 Principal Senior Civil Judge, Gulbarga 2 OS No 88/2013 Principal Senior Civil Judge, Gulbarga Coramandel Infrastructure (p) Ltd vs Commissioner CMC, Gulbarga Coramandel Infrastructure (p) Ltd vs Commissioner CMC, Gulbarga and ORS 3 OS No 56/2013 Principal SeniorCivil Judge, Raichur Coramandel Infrastructure (p) Ltd vs Commissioner CMC, Raichur and ORS 4 WP No / 2014 High Court of Karnataka, Gulbarga Bench 5 OS No 130/2013 Civil Judge, Junior Div, Hungunda 6 WP No82867/2013 High Court of Karnataka, Dharwad Bench 7 OS No 228/2013 Civil Judge, Haveri 8 WP No /2014 High Court of Karnataka, Dharwad Bench Coramandel Infrastructure (p) Ltd vs DMA & ORS Shyamaraju & Company (India) (p) Ltd Vs KUIDFC&ORS Sri Rajesh, Sfo Baburaj Patil, vs KUIDFC & ORS SriVasant Goud vsaee, NKUSIP Cell, Haveri & ORS Eagle Infra India Ltd, Vs KUIDFC & ORS 9 Application No340/ 2015 KAT Sri Laxman Sfo G Gundappa Vs GoK 10 OS No19/2015 Sr Civil Judge, Hungund 11 OSNo 58 & 59/2015 Principal Civil Judge Or), Vijayapura Shyamaraju &Company (India) (p) Ltdvs KUIDFC&ORS AP Reddy, Ramky, Hyderabad vs KUIDFC & ORS 12 Misc No 18/2014 Principal Sr, Civil Judge, Gulbarga 1) Mrs Parvathi Wfo Late Sri Ram Hanumanth & ORS Vs KUIDFC & ORS 9,02,60,917 25,00,00,000 2,86,000 45,73,08,000 M/s Tapi Prestressed Products Ltd Vs KUIDFC 13 WP No /2015 &ORS M/s Coromandel Infrastructure Pvt Ltd & ORS 14 MA9/2015 Vs Commissioner City Corporation, KalaburEi City Civil Court, Mayo Hall Unit, 15 OS No 26420/07 Electrosteel Casting Ltd, Vs KUIDFC & ORS 5,51,70,560 Bangalore

64 16 0 S No 4808/01 & Misc No 528/2011 City Civil Judge, Bangalorre KUIDFC Vs K N Rajan and ORS 17 OS No 5/2012 Principal Civil judge, Sr Div, Karwar Om Sai Electricals Vs KUIDFC & ORS 33,05,776 Mr Krishnegowda, sfo Late Chikknarasegowd 18 os No 144/2009 JMFC, Man2alore Vs KUIDFC 38,60,050 High Court of Karnataka, Bengaluru TR Harish, & Ors Vs KUIDFC & Ors WP No / &WA No I 2014 (PGA/SR134 to 141/ 2014) & Controlling Authority under the Employees*** Vs KUIDFC & ORS (PGA/SR 82 & 83/ 2015, & 85 Payment of Gratuity Act, to 87/ 2015) 21 WP 33447/2015 High Court of Karnataka, Bengaluru Sri Altaf Ahmed Vs KUID FC & ORS 22 Application No 7239/2015 Karnataka Administrative Tribunal Sri HM Jayakumar Vs KUIDFC & ORS **Suits which are filled for monetary award or value claimed *** 13different employees filing individual cases 86,01,91,303

65 COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF KARNATAKA URBAN INFRASTRUCTRE DEVELOPMENT & FINANCE CORPORATION LTD; BANGALORE FOR THE YEAR ENDED 31 MARCH2016 The preparation of financial statements ofkamataka Urban Infrastructure Development & Finance Corporation Ltd, Bangalore for the year ended 31 March 2016 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the Company The statutory auditors appointed by the Comptroller andauditor General oflndia under Section 139(5) ofthe Companies Act, 2013 are responsible for expressing opinion on these financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act This is stated to have been done by them vide their Audit Report dated I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) of the act of the financial statements of "Karnataka Urban Infrastructure Development & Finance Corporation Ltd, Bangalore" forthe year ended 31 March 2016 This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and Company personnel and a selective examination of some ofthe accounting records On the basis of my audit, nothing significant has come to my knowledge which would give rise to any comment upon or supplement to StatutoryAuditors' report For and on behalf of the Comptroller & Auditor General of India Yours faithfully, BANGALORE Date: 20th September 2016 Sdi (LANGAM CHAND SINGH) PRACCOUNTANTGENERAL (GENERAL & SOCIAL SECTOR AUDIT) KARNATAKA, BANGALORE

66 PARTICULARS I EQmTY & LIABILITIES Balance Sheet as at 31st March 2016 Note No Figures as at the end Figures as at the end of current reporting of previous reporting period period Shareholders' Funds Share Capital 1 8,06,48,800 8,06,48,800 Reserves & Surplus 2 32,94,76,503 34,27,06,702 NonCurrent Liabilities Other Long Term Liabilities ,73,16, ,96,77,151 Long Term Provisions 4 30,98,723 26,78,657 Current Liabilities Other Current Liabilities ,19,37, ,27,96,971 Short Term Provisions 6 3,05,848 3,95,638 TOTAL OF EQUITY & LIABILITIES 4910,27,84, ,89,03,919 ll ASSETS NonCurrent Assets Fixed Assets Tangible Assets 7 10,41,87,841 11,86,84,333 Intangible Assets 7 1,75,33,561 1,55,28,392 Capital WorkinProgress 7 23,46,884 Deferred Tax Assets (Net) 8 18,25,803 15,19,955 LongTerm Loans and Advances ,16,55, ,69,56,507 Current Assets Cash and Bank Balances ,48,08, ,51,51,625 ShortTerm Loans and Advances ,02,21, ,35,29,196 Other Current Assets ,25,51, ,51,87,027 Notes referred above are an integral part of Standalone Financial Statements Place: Bangalore Date : 17thAugust, 2016 Sdi (Srivatsa Krishna) Chairman Sdi (V,Ponnuraj) Managing Director Gen Manager Project Finance Company Secretary 1/c Sdi (KMRamesh) (Rltesh Sharma) Partner M No:210900

67 As per our report of even date for SNR & Company Chartered Accountants FRN: N Sdi (V,Ponnuraj) Managing Director Gen Manager Project Finance Company Secretary 1/c (Rltesh Sharma) Partner M No:210900

68 Statement of Profit and loss for the year ended 31st March 2016 PARTICULARS I IFigures as at the end of current reporting period Figures as at the end of previous reporting period I INCOME Revenue from operations Management Fee 13 5,99,45,738 6,76,43,384 II Other income 14 18,26,922 14,79,128 ill TOTAL REVENUE (I+ ll) 617,72,660 6,91,22,512 IV EXPENDITURE Employee benefits expense 15 2,17,73,917 2,43,73,271 Finance costs Depreciation and amortization expense 7 49,59,888 50,27,027 Other expenses 3,50,38,855 3,97,22,214 TOTAL EXPENSES 6,17,72,660 6,91,22,512 v 16 Profit before tax (III IV) VI Tax expense: (1) Current tax 3,05,848 3,95,638 (2) Deferred tax Asset 3,05,848 3,95,638 VII Profit (Loss) for the period (VVI(l) + Vl(2)) VIII Earnings per equity share: (1) Basic (2) Diluted Notes on Financial Statements 1to 29 Notes referred above are an integral part of Standalone Financial Statements Place: Bangalore Date : 17thAugust, 2016 Sdi (Srivatsa Krishna) Chairman Sd/ (V,Ponnuraj) Managing Director Sd/ (KMRamesh) Gen Manager Project Finance Company Secretary 1/c As per our report of even date for SNR & Company Chartered Accountants FRN: N Sdi (Rltesh Sharma) Partner M No:210900

69 Cash Flow Statement for the year ended 31st March, 2016 Particulars Amountinf For the year ended For the year ended 31st March st March 2015 A CASH FLOW FROM OPERATING ACTIVITIES: 11 Asian Development Bank assisted North Kamataka Urban Sector Investment Programme (NKUSIP) Project fund receipts from GOK 330,00,00, ,05,00,000 Project fund receipts CMSMTDP/SFC including interest earned 2,26,76,812 3,14,08,136 Encashment ofbg 23,00,17,563 5,11,86,773 Funds from internal sources/ ULB contribution 52,83,77,758 30,41,82,966 Cash paid to Works, Consultants, Employees and other admincosts (325,53,98,553) (332,19,74,673) 12 Asian Development Bank assisted Karnataka Urban Development and Coastal Environmental Management Project (KUDCEMP) Project fund receipts from GOK Funds from internal sources 51,21,881 10,74,414 Cash paid to Works, Consultants, Employees and other admincosts (89,59,425) (4,77,39,997) 13 World Bank assisted Karnataka Municipal Reforms Project (KMRP) Project fund receipts from GOK 30,00,00, ,55,00,000 Funds from ULB Contribution & internal source 3,00,96,346 81,20,25,324 Cash paid to Works, Consultants, Employees and other admin costs (106,43,51,728) (248,35,50,477) 14 World Bank assisted Karnataka Urban Water Sector Improvement Project (KUWASIP) Project fund receipts from GOK ESCROW Receipts & Internal Resources 7,55,24,523 2,23,26,501 O&M and Technical auditor fees paid (16,07,069) (3,34,55,900) Cash paid to Works, Consultants, Employees and other admin costs (2,36,72,443) (1,08,03,156) 15 Centrally sponsored Jawaharlal Nehru National Urban Renewal Mission (JnNURM) Project fund receipts from GOK& GOI Including interest 132,41,27, ,68,80,747 Cash paid to Implementing Agencies I Works (1313,86,16,38) (384,42,04,992) 16 Asian Development Bank assisted Karnataka integrated Urban Water Management Investment programme (KIUWMIP) Project fund receipts from GOK 37,50,00,000 15,00,00,000 Cash paid to Works, Consultants, Employees and other admincosts ANNUAL REPORT (33,44,00,363) (16,66,12,392)

70 Particulars For the year ended 31st March 2016 For the year ended 31st March 2015

71 "NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C )" Add: OPENING CASH AND CASH EQUIVALENTS CLOSING CASH AND CASH EQUIVALENTS * (125,03,43,123) 1632,51,51, ,48,08,502 86,00,65, ,50,86, ,51,51,625 *CASH AND CASH EQUIVALENTS COMPRISES FIXED DEPOSIT PDACCOUNT CASH BANK 1032,56,30, ,84,93,006 19, ,06,66, ,14,82, ,90,35,669 4, ,46,29,147 TOTAL 1507,48,08, ,51,51,625 Place : Bangalore Date :17th August, 2016 Sd/ (Srivatsa Krishna) Chairman Sd/ (VPonnuraj) Managing Director Sd/ (KMRamesh) Gen Manager Project Finance Company Secretary 1/c As per our report of even date for SNR & Company Chartered Accountants FRN: N Sd/ (Ritesh Sharma) Partner M No:210900

72 Notes on Financial Statements for the year ended 31st March 2016 PARTICULARS Previous year's figures have been regrouped /reclassified wherever necessary to correspond with the current year's classification/ disclosure I Figures as at the end of current reporting period Figures as at the end of Previous reporting period I SHARE CAPITAL A Authorised Capital: 10,00,000 Equity Share off 100/ each B: Issued, Subscribed & Paid up Capital: 8,06,488 (8,06,488) Equity shares of f 100/ each fully paid 10,00,00,000 8,06,48,800 10,00,00,000 8,06,48, The details of Shareholders holding more than 5% share : Name of the Shareholder Gov orof a Chairman, BDA 2 Reserves & Surplus 21 ADB assisted KillD Project Reserve: Balance as per previous Balance Sheet Less: Deletion offixedassets Total21 22 ADB assisted KUDCEM Project Reserve: Balance as per previous Balance Sheet Less: Deletion/Adjustment of Fixed Assets Total22 No of Shares% held No of Shares% held 6,06, % 6,06, % 2,00, % 2,00, % 1,12,77,590 1,29,50,863 83,27,774 16,73,273 29,49,816 1,12,77,590 81,92,401 1,87,10,995 62,11,538 1,05,18,594 19,80, , ADB assisted NKUSI Project Reserve: Balance as per previous Balance Sheet Add: Grants Utilised towards Fixed Assets Less: Deletion/Adjustment of Fixed Assets Total23 24 World Bank assisted KUWASI Project Reserve: Balance as per previous Balance Sheet Add: Grants Utilised towards Fixed Assets Less: Deletion/Adjustment of Fixed Assets Total24 6,88,91,801 6,81,71,492 11,32,872 12,74,309 4,33,185 5,54,000 6,95,91,488 6,88,91,801 31,95,019 31,47,804 47,215 2,49,341 29,45,678 31,95,019

73 Notes on Financial Statements for the year ended 31st March 2016 Figures as at the end PARTICULARS of current reporting period Figures as at the end ofp ousreporting period 25 World Bank assisted KMR Project Reserve: Balance as per previous Balance Sheet Add: Grants Utilised towards Fixed Assets Less: Deletion/Adjustment of Fixed Assets Total25 26 World Bank assisted KUWSM Project Reserve: Balance as per previous Balance Sheet Add: Grants Utilised towards Fixed Assets Less: Deletion/Adjustment of Fixed Assets Total26 27 ADB assisted KIUWMI Project Reserve: Balance as per previous Balance Sheet Add: Grants Utilised towards Fixed Assets Total27 60,35,744 4,17,607 64,53,351 3,97,060 1,88,130 2,08,930 1,33,813 6,29,290 7,63,103 54,48,155 5,87,589 60,35,744 2,43,830 1,53,230 3,97,060 1,33,813 1,33, Centrally assisted JNNURM Project Reserve: Balance as per previous Balance Sheet Add: Grants Utilised towards Fixed Assets Total28 23,738 23,738 23,738 23, Water Supply & UGD in 16ULB's : Balance as per previous Balance Sheet 42,657 Add: Grants Utilised towards Fixed Assets 42,657 Less: Deletion/Adjustment of Fixed Assets Total29 42,657 42,657 SUBTOTAL (21 to 29) 8,49,59,624 9,81,89, Special Reserve U/s 36(1)(viii): Balance as per previous Balance Sheet 10,47,23,642 10,47,23,642 Total (210) 10,47,23,642 10,47,23, General Reserve: Balance as per previous Balance Sheet Total (211) TOTAL ( 21 to 211) 13,97,93,237 13,97,93,237 32,94,76,503 13,97,93,237 13,97,93,237 34,27,06,702

74 Notes on Financial Statements for the year ended 31st March 2016 Figures as at the end PARTICULARS of current reporting period Figures as at the end ofp ousreporting period 3 Other Long Term Liabilities 3(a) Mega City Revolving Fund Balance as per previous Balance Sheet 779,40,65, ,33,31,332 Add: MCRF 1 Recovery of Principal 116,71,09,128 65,23,04,763 MCRF 2 Recovery of Interest 38,00,11,574 18,58,35,414 MCRF 3 Interest on Redeployment Funds 70,22,40,029 64,41,69, ,26, ,56 40,561 Less:l MCRF Utilisation 425,71,80,000 44,15,75,000 2 Transfer to Consultancy & Professional Fees Corpus 4,00,00,000 Tota13(a) 578,62,46, ,40,65,561 3(b) UIDF Revolving Fund Balance as per previous Balance Sheet 345,16,98,115 Add: UIDF 1 Recovery ofprincipal 6,72,39,876 UIDF 2 Recovery oflnterest 4,08,07,996 UIDF 3 Interest on Redeployment Funds/others 35,17,76, ,15,22,005 Less: UIDF Utilisation Total 3(b) 436,79,69, ,15,22,005 3(c) Outstanding Principal Due to GOKUIDFRF 3(d) Outstanding Principal Due to GOKMCRFRF 4 Long Term Provisions Provision for Leave Salary Provision for Gratuity 983,20,70, ,86,91, ,10,30, ,53,97,762 TOTAL3(a) to 3(d) 2560,73,16, ,96,77,151 30,79,291 19,432 26,78,657 TOTAL 4 30,98,723 26,78,657 5 Other Current Liabilities 5 (a) Payables Provision for Taxation Earlier Years Development of New Projects National Urban Information System GOK Management Fee 8,40,353 55,33,189 26,000 2,14,58,266 4,44,715 55,33,189 26,000 2,16,88,004

75 Notes on Financial Statements for the year ended 31st March 2016 Figures as at the end PARTICULARS of current reporting period Figures as at the end ofp ousreporting period Urban Life Index Indian Heritage Cities Network Consultancy & Professional fees (Corpus out ofmcrf) Principal Due to GOKMCRFRF Interest Due to GOKMCRFRF Principal Due to GOKUIDFRF Interest Due to GOKUIDFRF Interest Due to Revolving Fund(Fixed Deposits) Other Payables 5,00,000 2,81,19, ,19,17,983 1,05,55, ,01,09, ,91,78,534 34,11,09,635 79,76,25,539 5,00,000 1,13,00,000 3,23,31,430 90,74,78,024 7,83,12, ,67,74, ,47,25,578 47,86,75, ,68,06,584 Total5(a) 1794,69,73, ,745,96,281 Includes Statutocy dues, security deposits, RJ:tootion Money, Due to agencies and oulstallding Expenses 5(b) Govt ofkarnatakaa/c ADB assisted KUDCEM Project Balance as per previous Balance Sheet Add: Bank Interest from LAQ/DMA/ 1,34,29,715 7,03,24,004 Consultants & Others 2,13,626 10,74,414 KBCWWFund 685 1,36,44,026 7,13,98,418 Less: Funds utilised for administration and Consultancy 13,87,451 81,50,728 Funds released as Grant to IA's 15,61,530 1,16,07,589 Funds released as Loan to!a's 60,10,444 3,82,10,386 89,59,425 5,79,68,703 Total5(b) 46,84,601 1,34,29,715 Note: The Asian Development Bank (ADB) assisted KUDCEM Project was closed on with ADB and the spill over works under GoK share is under progress for completion 5(c) Govt of Karnataka Ale ADB assisted NKUSI Project Balance as per previous Balance Sheet 86,25,70, ,85,48,363 Add: Funds received from GoK during the year 330,00,00, ,05,00,000 Interest earned from CMSMTDP 3,59,78,265 3,11,62,902 ULB Contribution under the project 48,79,09,121 32,45,40,116 KBCWWFund 3,08,662 2,45,234

76 Less: Performance Bank Guarantee Encashed Funds utilised for administration and Consultancy Funds utilised to acquire Fixed Assets Funds released as Grant to IA's Funds released as Loan to IA's ULB Contribution adjusted CMSMTDP Adjusted ,67,84, ,61,83,388 32,29,78,631 34,74,20,224 11,32,872 12,74, ,66,32, ,67,65,276 66,97,00,896 62,99,81,584 29,52,85,028 28,90,96,947 90,74,653 Notes: (i) The company is the nodal agency for implementation, monitoring and management of funds of the Asian Development Bank (ADB} assisted NKUSI Programme For the project, ADB has sanctioned US $ million as loan to Govt of India which will be fullypassed on to GOK based onproject implementation as loan (ii) The ADB financial support is extended through a Multitranche Financing Facility (MFF) This facility will be provided in tranches as individual loan to support batches of investments or sub projects/components Each such facility will be based on the submission of a Periodical Financing Request (PFR) (iii) Under the Tranche! loan, ADB share is US $ 2370 million and GOK & ULB contribution is US $ 1320 million; TrancheII loan, ADB share is US $ million and GOK & ULB contribution is US $ 8730 million; TrancheIII loan, ADB share is US $ 60 million and GOK & ULB contribution is US $ 4170 million and Under TrancheIV loan, ADB share is US$ 6330 million and GOK & ULB contribution is US$ 2780 million (iv) TrancheI loan is completed in respect of ADB portion, Cumulative achievement was US $ 2340 million, balance UGD Works shifted to Tranche4 The other Tranches works are inprogress 5 (d) Govt of Karnataka Ale World Bank assisted KUWASI Project Balance as per previous Balance Sheet Less: Funds utilised Incremental operating expenses Funds utilised to acquire Fixed Assets Funds released as Grant to IA's 337,57,29, ,36,12,993 TotalS (C) 154,10,54,449 86,25,70,395 Total5(d) 47,97,117 1,37,82,096 47,97,117 1,37,82,096 (6,82,360) 51,92,456 47,215 37,45,308 (6,82,360) 89,84,979 54,79,477 47,97,117 Note: The World Bank assisted KUWASI Project was a pilot project in the demo zones of3 City Corporations & completed on Settlement of final bills on the spillover works areunder progress

77 PARTICULARS Figures as at the end ofcurrentreportlng period Figures as at the end ofp ousreporting period 5(e) Govt of Kamataka Ale World Bank assisted KMR Project Balance as per previous Balance Sheet 106,01,50,655 Add: Funds received from GoK during the year 30,00,00,000 ULB I JNNURM Contribution 6,44,39,231 Interest from DMAIDPD/ULB Funds 9,12,377 Forfeit of Bank Guarantee 38,57,988 Excess Grant earlier w/off Adjusted to GoKA/c 36,99,03,224 LESS: Funds utilised 179,92,63,475 Incremental operating expenses 3,38,78,471 Funds utilised to acquire Fixed Assets 4,17,607 Funds released as Grant to IA's 37,04,86,559 Funds released as Loan to IA's 9,34,95,969 ULB/JNNURM Contribution Adjusted 8,09,96,008 Note: 57,92,74,614 78,19,64, ,55,00,000 80,81,01,939 22,09,565 17,13, ,94,90,048 8,52,78,493 5,87, ,33,28,123 6,98,11,199 83,03,33, ,93,39,393 Total5(e) 121,99,88, ,01,50,655 The company is the nodal agency for implementation, monitoring and management of funds of the World Bank assisted Karnataka Municipal Reforms Project (KMRP) Out of the total project cost, World Bank share as loan is US $ 216 million and Government of Karnataka & ULB contribution is US $ 94 million The loan was closed on by the World Bank and US$ million has been disbursed by the bank as loan to Govt oflndia which is fully passed on to GOK as loan GoK & ULBs have contributed US $ million towards the project The spillover works of the project are under progress funded by GoK as state share 5 (f) Govt of Kamataka Ale GOI assisted JNNURM Project Balance as per previous Balance Sheet 22,47,07, ,10,29,673 Add: Funds received from Goi during the year 98,68,16, ,40,25,000 Funds received from Goi/GOK during the year towards reimbursement 69,78,182 2,95,64,000 Funds received from GoK during the year 32,07,78,000 51,10,75,000 Interest earned/ (Paid) on JNNURM Funds 1,16,87,981 2,22,16, ,09,67, ,79,10,420

78 PARTICULARS Figures as at the end Figures as at the end of current reporting of previous reporting period period ` `

79 Funds released as Grant to IA's 18,74,13,221 9,89,24,956 Funds released as Loan to IA's 9,28,52,606 5,65,49,965 ULB Contribution adjusted 2,78,48,152 1,72,74,991 Notes: 37,58,28,055 19,08,76,542 Total5(g) 15,17,18,764 12,46,64,928 (i) The company is the nodal agency for implementation, monitoring and management of funds of theasian Development Bank (ADB) assisted KIUWMI Programme For the project,adb has sanctioned US$ 15000million as loan to Govt oflndia which will be fully passed on to GOK based onproject implementation as loan (ii) The ADB financial support is extended through a Mu1titranche Financing Facility (MFF) This facility will be provided in tranches as individual loan to support batches of investments or sub projects/components Each such facility will be based on the submission of a Periodical Financing Request (PFR) (iii) Under the Tranche! loan, ADB share is US $ 7500 million and GOK & ULB contribution isus $ 2952 million; The project also as UFPF grant Fund fromadb of US$ 180million (iv) The project consultants for PMDC and FMDC have been appointed on approval ofec The project is under progress 5 (h) Govt ofkarnatakaa/c World Bank assisted KUWSM Project Balance as per previous Balance Sheet ADD: Funds received from GoK during the year LESS: Funds utilised for administration and Consultancy Funds utilised to acquire Fixed Assets 10,48,77,843 13,15,89,785 1,50,00,000 11,98,77,843 13,15,89,785 2,60,08,517 2,65,58,712 1,53,230 2,60,08,517 2,67' 11,942 Total5(h) 9,38,69,326 10,48,77,843 Notes: (i) The company is the nodal agency for implementation, monitoring and management of funds of the World Bank (WB) assisted KUWSM Project For the project, WB has sanctioned US$ million asloanto Govt oflndiawhich is fully passed on to GOK as loan (ii) The WB fmancial support is provided in two phases The project envisages scale up continuous water supplies in the cities ofbelgaum, Gulbarga andhubli Dharwad (iii) UnderthePhase1, WBshareis US$18700millionandGOKis US$2000million The ULB contribution for Phase 1 is US $ 7200 million and US $ million in PhaseII The appointment of project consultants isunder progress

80 S (i) Govt of Karnataka Ale Solid Waste Management Project Balance as per previous Balance Sheet 170,30,02,697 ADD: Funds received from GoK during the year 1:8::0::,0:O:i:,O:O::::L,:0: 00;+::2::5:0i:l,00i:l,OO,OOO:i 350,30,02, ,00,00,000 LESS: Funds utilised for SWM Works 167,94,41,981 79,69,97,303 Notes: Total 5(i) 182,35,60, ,30,02,697 (i) The company is the nodal agency for establishing 9 Solid Waste Management units in the Jurisdiction ofbbmp areas for scientific processing ofsolid Waste generated in the Corporation Limits (ii) The Government has made a provision of270 crores forthis purpose forfy with an arrangement to release 150 crores directly to KUIDFC and balance 120 crores to be released from BBMP, out of 150 crores sanctioned to BBMP by the government for FY GOK has made additional provision of 271 crores during (iii)the procurement of Equipments & Machineries to the identified SWM treatment plants and civil works are inprogress 5(j) Govt of Kamataka Ale Gol assisted SCM Project Balance as per previous Balance Sheet Add: Funds received from Gol during the year for DPR Preparation 12,00,00,000 Interest earned/(paid) on SCM Funds 4,09,812 1,20,40,812 Less: Funds released as grant to la's for DPR Preparation 6,00,00,000 Total 5(j) 6,04,09,812

81 Notes: (i) Government oflndia (Gol) has launched the Smart Cities Mission (SCM) across 100 cities and in Kamataka KUIDFC has been nominated as the Nodal Agency for the mission by Government of Kamataka Six cities viz, Belagavi, Hubbali Dharwad, Davanagere, Shivamogga, Mangaluru and Tumakuru are approved under the mission, ofwhich Belagavi and Davanagere are selected inthe first round of competition (ii) Further, Hubbali Dharwad, Shivamogga, Mangaluru, Tumakuru and Bengaluru are competing inround competition Revision of the smart cityproposals is in progress (iii)as per Mission Guidelines and Government ofkamataka approval the Special Purpose Vehicle is established for Belagavi and Davanagere cities TOTAL 5(a) to 5(j) 2308,19,37, ,27,96,971 6 Short Term Provisions Provision for Taxation Current Year 3,05,848 3,95,638 TOTAL 6 3,05,848 3,95,638

82 Fixed Asset and Depreciation,v_ "'"v 1 v ua" u,, lloov u"aa, && """'u '"""au MV&el GROSS BLOCK DEPRECIAnON NET BLOCK Partk:ulan Asat 01/CW2015 Additions dur1ng the Year Deletlons/Adj dur1ng the Year Asat 31103/2016 As at 01104/2015 For the year Withdrawn during the year Asat 31103/2016 Asat 31103/2016 As at (II Tangible assets A) CORPORATE ASSETS 1Building 1,01,84,212 1,01,84,212 59,01,185 2,06,948 61,08,133 40,76,079 42,83,027 2 Lease Hold Land 3 Office Equipments 4 Furniture &: Fixtures 4,22,32,508 42,20,192 36,01,002 4,78,703 13,62,658 12,33,005 4,22,32,508 33,36,237 23,67,997 1,51,92,130 34,05,366 23,n,794 14,07,750 2,96,783 2,09,268 12,82,356 6,42,752 1,65,99,880 24,19,793 19,39,310 2,56,32,628 9,16,444 4,28,687 2,70,40,378 8,14,826 12,28,208 5 Computers ll: Printers 1,90,21,909 51,801 14,67,910 1,76,05,800 1,75,93,311 5,10,695 14,27,452 1,66,76,554 9,29,246 14,28,598 6 Vehicles 47,76,594 20,39,292 68,15,886 41,20,180 4,33,035 45,53,215 22,62,671 6,56,414 Subtotal (A) 8,40,36,417 25,69,796 40,63,573 8,25,42,640 4,85,84,966 30,64,479 33,52,560 4,82,96,885 3,42,45,755 3,54,51,451 B) KUlD PROJECT ASSETS: 1 Office Equipments 2 Furniture &: Fixtures 3 Computers ll: Printers 37,98,975 47,53,904 19,71,509 25,91,461 30,43,902 19,39,209 12,07,514 17,10,002 32,300 12,07,514 17,10,002 32,300 37,98,975 47,53,904 19,71,509 Subtotal (B) 1,05,24,388 75,74,572 29,49,816 29,49,816 1,05,24,388 C) KUDCEM PROJECT ASSETS: 1Office Equipments 3 Furniture &: Fixtures 4 Computers ll: Printers 11,82,077 51,22,744 18,87,580 4,57,404 48,09,570 9,44,564 7,24,673 3,13,174 9,43,016 7,24,673 3,13,174 9,43,016 11,82,077 51,22,744 18,87,580 Subtotal (C) 81,92,401 62,11,538 19,80,863 19,80,863 81,92,401 D) NKUSI PROJECT ASSETS: 1 Office Equipments 2 Plant &: Machinery 3 Furniture &: Fixtures 4 Computers ll: Printers 5 Vehicles 52,89,344 5,64,421 3,08,40,636 1,03,76,612 93,60,639 2,10,985 20,965 5,04,730 2,39,590 1,93,595 52,60,739 5,64,421 3,06,68,006 1,08,81,342 93,60,639 52,60,739 5,64,421 3,06,68,006 1,08,81,342 93,60,639 52,89,344 5,64,421 3,08,40,636 1,03,76,612 93,60,639 Subtotal (D) 5,64,31,652 7,36,680 4,33,185 5,67,35,147 5,67,35,147 5,64,31,652 E) KMR PROJECT ASSETS: 1 Office Equipments 2 Furniture &: Fixtures 3 Computers ll: Printers 1,82,567 5,01,113 36,08,474 1,82,567 5,01,113 36,08,474 1,82,567 5,01,113 36,08,474 1,82,567 5,01,113 36,08,474 Subtotal (E) 42,92,154 42,92,154 42,92,154 42,92,154

83 Note No 7: DiJdosure p1u11wmt to Sthed11Ie II to the Compania Ad, 1013 Particulars (i) Tangible assets F) KUWASI PROJECT ASSETS: 1 Office Equipments 2 Furniture & Fixtures 3 Computers B: Printers As at ,78,581 2,28,693 25,87,745 Additions durtna the Year GROSS BLOCK DEPRECIATION NET BLOCK Withdrawn Deletlons/Adj As at As at As at As at For the year during the durtna the Yur 31/ /04/ / / year 1,60,8n 88,464 2,17,704 2,28,693 24,99,281 2,17,704 2,28,693 24,99,281 As at 31/ ,78,581 2,28,693 25,87,745 Subtotal (F) 31,95,019 2,49,341 29,45,678 29,45,678 31,95,019 G) KUWSM PROJECT ASSETS: 1 Office Equipments 2 Furniture & Fixtures 3 Computers B: Printers 64,797 1,48,592 1,83,671 64,797 1,23,333 25,259 1,83,671 25,259 1,83,671 64,797 1,48,592 1,83,671 Subtotal (G) 3,97,060 1,88,130 2,08,930 2,08,930 3,97,060 H)KIUWMIP PROJECT ASSETS: 1 Office Equipments 2 Furniture & Fixtures 3 Computers B: Printers 82,188 51,625 34,867 3,90,597 2,03,826 34,867 4,n,785 2,55,451 34,867 4,n,785 2,55,451 Subtotal (H) 1,33,813 6,29,290 7,63,103 7,63,103 1,33,813 I) JNNURM PROJECT ASSETS: 1 Computers B: Printers 23,738 23,738 23,738 23,738 Subtotal (I) 23,738 23,738 23,738 23,738 42,657 42,657 42,657 Subtotal (J) 42,657 42,657 42,657 42,657 J) 16TOWNS PROJECT ASSETS: 1 Computers B: Printers 42,657 lbtal (A+B+C+D+E+F+G+H+I+J) 16,72,69,299 39,35,766 1,87,20,339 15,24,84,726 4,85,84,966 30,64,479 33,52,560 4,82,96,885 10,41,87,841 11,86,84,333 PREVIOUS YEAR 17,37,98,913 36,13,987 1,01,43,601 16,72,69,299 4,42,74,341 44,65,285 1,54,660 4,85,84, ,86,84,333 12,95,24,572 (ii) lntang1ble assets Software Corporate Software KUlDP Software NKUSIP Software KMRP 82,188 51,625 14,25,740 38,18,031 7,85,313 60,29,084 25,16,023 5,71,451 7,53,202 7,53,202 7,53,202 1,24,60,149 3,96,192 1,28,56,341 1,28,56,341 1,24,60,149 17,43,590 4,17,607 21,61,197 21,61,197 17,43,590 Subtotal (l) 1,63,82,681 46,31,830 15,38,515 2,10,46,622 8,54,289 18,95,409 7,63,363 35,13,061 1,75,33,561 1,55,28,392 8,54,289 18,95, ,363 35,13,061 PREVIOUS YEAR 1,74,79,982 17,51,965 28,49,266 1,63,82,681 2,92,547 5,61,742 8,54,289 1,55,28,392 1,71,87,435 Ill) Capital Work In Protress Corporate 23,46,884 23,46,884 23,46,884 Subtotal (J) 23,46,884 23,46,884 23,46,884 PREVIOUS YEAR 23,46,884 23,46,884 23,46,884 23,46,884

84 PARTICULARS Figures as at the end Figures as at the end of current reporting ofpreviousreporting period period 8 Deferred Tax Assets (Net) Provision for Deferred Tax Assetfor the current year *(Note No23) for earlier period 3,05,848 15,19,955 3,95,638 11,24,317 TOTAL 8 18,25,803 15,19,955 9 Longterm loans and advances (Unsecured and Considered Good) Outstanding Megacity Project Loans Due from la's 562,10,30, ,53,97,762 Outstanding KIDD Project Loan Due from la's 67,15,85,752 84,35,73,085 Outstanding KUDCEM Project Loan Due from la's 331,16,05, ,74,57,554 Outstanding NKUSI Project Loan Due from la's 281,67,38, ,68,75,561 Outstanding KIUWMI Project Loan Due from la's 15,67,91,175 5,70,07,823 Outstanding KMR Project Loan Due from la's 88,20,16,793 84,22,17,690 Outstanding JNNURM Project Loan Due from la's 199,33,32, ,49,20,117 Rent Advance 98,38,875 2,75,58,526 Other Deposits 54,65,441 86,97,985 TDS receivable from Income Tax 11,32,50,404 11,32,50,404 TOTAL ,16,55, ,69,56, Cash and Bankffreasury Balances Balances with Banks 283,06,66, ,46,29,147 Cash on Hand 19,321 4,062 Fixed Deposits with Banks * UIDF Revolving Fund 413,45,65, ,11,06,686 CMSMTDP Fund 48,45,22,162 35,58,95,482 JNNURMFund 25,94,42,538 18,10,98,850 Megacity 544,64,99, ,28,74,719 Corporate 50,000 JNNURM UDD Fund 5,50,529 5,07,010 Balances with PD account with State Government 191,84,93, ,90,35,669 * All Fixed Deposits with banks are having maturity period of less than 12 Months

85 PARTICULARS Figures as at the end of current reporting period Figures as at the end ofpreviousreporting period 11 ShortTerm Loans and Advances (Unsecured and Considered Good) Advance to Staff 3,70,791 Prepaid Expenses 1,17,369 Advance to Consultants 5,67,601 CDP Advance to Implementing NGO's Other Receivable 21,73,61,816 Govt ofkarnataka Ale Implementation of Water Supply & UGD in 16ULB's * 42,657 5,23,425 1,96,018 1,27,10,891 93,495 28,58,79,131 1,68,35,591 Current Dues KUDCEM Project Loan Due from la's 659,46,97,930 KUIDP Project Loan Due from la's 487,53,70,483 KMR Project Loan Due from la's 87,49,88,269 Megacity Project Loans 149,24,73,426 JNNURM Project Loan Due from la's 291,42,30,939 (*) Govt of Karnataka Ale Implementation of Water Supply & UGD in 16 ULB's Balance as per previous Balance Sheet Add: Funds received from GoK during the year Less: Funds utilised for administration and Consultancy Funds utilised to acquire Fixed Assets Expenditure Transferred to Other Projects Notes: 543,49,93, ,46,54,875 68,34,41,835 98,57,90, ,84,09,900 TOTAL ,02,21, ,35,29,196 1,68,35,591 33,79,250 1,68,35,591 33,79, ,92, ,13,684 42, ,92,934 1,34,56,341 Total 42,657 1,68,35,591 (i) The company is the nodal agency for monitoring and management of funds of the implementation ofwater Supply and UGD in 16ULB's at atotal cost off Crores (ii) The Funding Pattern is 50% Loan from Domestic Market Borrowings and 50% GoK Grant, which will be done through KWSPF Trust (iii) Final DPR's for water supply has been submitted by the project consultant for 11 to wns and 10 towns has been approved by the Chief Engineer, KUIDFC Out of 11 Towns Kamalapura and Kudachi towns have opted out of the scheme stating that their towns had sufficient water supply

86 PARTICULARS Figures as at the end of current reporting period f Figures as at the end ofpreviousreporting period 12 Other Current Assets Interest receivable on Fixed Deposit JNNURM 44,88,740 Interest receivable on Fixed Deposit KUDCEMP 15,79,253 Interest receivable on Fixed Deposit KUIDP 15,21,61,476 Interest receivable on Fixed Deposit Megacity 15,05,97,011 Interest receivable on Fixed Deposit Others 4,078 Interest receivable on Fixed DepositNKUSIP 1,19,80,552 Interest receivable on Flexi Deposit Corporate 1,43,679 Interest receivable on Flexi Deposit Megacity Interest receivable on Flexi DepositKMRP 20,97,030 Interest receivable on Flexi DepositKUWASIP 24,40,364 Interest receivable on Flexi DepositKUWSMP 3,28,795 Interest receivable on Flexi DepositNKUSIP 5,68,655 Interest receivable on Flexi Deposit SCM 4,09,812 Other Advances 38,95,40,997 Tax Deducted at Source on Deposits 63,62,11,161 47,40,389 16,08,652 16,45,78,413 26,28,32,396 66,05,262 1,74,299 2,68,655 25,32,189 16,36,032 5,43,036 47,89,93,924 52,06,73,780 In accordance with the accounting policy relating to revenue recognition followed by Company, the Management fee is recognized as income to the extent of administrative """' '""u"'"""' during current financial year The total administrative expenditure for the current year is Lakhs (f Lakhs) and the same is met through Management Fees of 599 Lakhs( Lakhs) and Otherincomeof 1827Lakhs( 1479Lakhs) 14 Other income Documentation Charges Interest from Bank Deposit & Others Miscellaneous Receipts Rent KHB Flat Sale of Scrap & Others 4,00,000 5,85,992 5,62,573 2,52,680 25,677 3,00,000 6,52,794 2,85,847 2,37,213 3,274 TOTAL 14 18,26,922 14,79, Employee benefits expense Salaries and wages Contribution to Provident and other funds Staff welfare expenses 1,95,50,220 14,96,935 7,26,762 2,20,09,346 16,34,263 7,29,662 TOTAL 15 2,17,73,917 2,43,73,271