Page 120 - KRCL ENglish

Annexure A to the Independent Auditor's Report of even date on the Standalone
nancial statements of Konkan Railway Corporation Limited

(Referred to in Paragraph 1 under “Report on Other Legal and Regulatory
Requirements'' section of our report).

A statement on matters specied in paragraph 3 & 4 of the Companies (Auditor's
Report) Order 2016 (“the order”), in terms of section 143(11) of the Companies Act,
2013,

(i)(a) The Company has maintained records of Fixed Assets, however therein sufcient
description of the asset to make identication possible, situation and location /
custody of the assets is not mentioned. Also in certain cases the quantities and per
unit rates are not mentioned.

(b) The xed assets of the company have been physically veried by a physical
verication cell. However during current nancial year due to outbreak of Covid 19
pendamic all assets as per the physical verication programme could not be veried.
In our opinion the current team & procedure adopted is not adequate / reasonable
considering the size of the Company, Nature & volume of the assets. The procedure
for physical verication of xed assets needs to be strengthened whereby inter-
departmental team should carry out the physical verication in the phase manner as
per company's policy.

(c) According to the information and explanation given to us and the record examined by
us, the title deeds of the leasehold land are held in the name of the company. However,
in respect of freehold land worth Rs. 205.96 Crores held by the company, due to lack
of sufcient information and reconciliation with books, we are unable to comment
whether all the title deeds of such freehold land are held in the name of the Company.

(ii) As explained to us, the inventory of stores, spares, diesel and others held by the
Company have been physically veried by the Stock Verication Cell under Perpetual
Inventory System on annual basis. Further stocks of Rails are physically veried once
in two years. In our opinion, the frequency of verication is reasonable as regard to the
size, nature and volume of Inventories. It has been certied by the management that
no material discrepancies were noticed on such verication.

(iii) According to the information and explanations given to us, the Company has granted
unsecured loans to its one of its related party – Konkan Railway Welfare Organisation,
covered in the register maintained under section 189 of the Companies Act, 2013, in
respect of which:

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