Page 107 - KRCL ENglish

expects to sustain and overcome the impact and recover from the present slowdown.
In view of this, the standalone nancial statement has been prepared on Going
Concern Basis.

D) We draw attention to Note No. 46 of the standalone nancial statements, that the
Balances of the Receivable and Payable accounts of Major Railways, Suppliers,
Contractors etc. are subject to conrmation / adjustments / reconciliations. The
Company will review of such balances for carrying out necessary adjustments in the
subsequent years.

E) We also draw attention to Note No. 8, 16, 17 & 43.3 of the standalone nancial
statements related to loan given to Konkan Railway Welfare Organisation (KRWO)
wherein the principal and interest is overdue to the tune of Rs. 26.15 Crores.
Furthermore there is disparity in appropriation / adjustment of part amount received of
Rs. 2.61 Crores whereby the company has appropriated the amount received
towards interest wheras KRWO has adjusted the same towards principal.

F) We draw attention to Note No. 26 of the standalone nancial statements related to
Trade Payable which includes Rs. 708.20 Crores in respect of amount due to Zonal
Railways, out of which Rs. 424.38 Crores is outstanding for more than 1 year,
including outstanding of Rs. 278.59 Crores for more than 3 years, as old as 2004-05
and onwards including old unclaimed amounts.

G) We draw attention to Note No. 17 of the standalone nancial statements related to
Other Inter Railway Financial Adjustment (IRFA) Receivables from Zonal Railways
amounting to Rs. 356.22 Crores, out of which the outstanding for more than 3 years
are Rs.147.59 crores lying since long, as old as 2004-2005 and onwards.

H) We draw attention to Note No. 20a.7 of the standalone nancial statements, which
shows that there is a difference of Rs. 214.02 Crores in authorized share capital as per
records of Ministry of Corporate Affairs – MCA (Rs. 8293.53 Crores) and as per
company's records (Rs. 8079.51 Crores). The application given to MCA for correction
/ reduction in authorised share capital in line with approval of President of India, is not
yet acted upon.

I) We draw attention to Note No. 12 of the standalone nancial statements related to
Investments wherein presently the Investment of free fund is also kept deposited with
Life Insurance Corporation (LIC) in the Group Leave Encashment Scheme, including
life assurance benet. The same need to be evaluated as per Norms and Guidelines
including disclosure and considering it as unfunded, Refer Note No. 36.6 (C) of the
standalone nancial statements for disclosure of Employee benets as per Ind AS 19.

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