Page 121 - KRCL ENglish

a) The terms and conditions of grant of such loans are, in our opinion, prima facie, not
prejudicial to the Company's interest except that the loan is unsecured and carrying
simple rate of interest of 7% per annum which is lower than the borrowing cost of the
company and also lower than yield of government security, then prevailing, close to
the tenor of the loan.

(Total loan amount granted during the year is Nil and balance outstanding as at
balance sheet date is Rs. 20.33 Crores and interest accrued thereon is Rs. 7.65
Crores)

b) The Schedule of repayment of principal & payment of interest is stipulated but
repayment of principal or payment of interest is not regular.

Principal along with interest is to be recovered with in the span of 7 years from the date
of disbursement, however amount of Rs. 19.03 Crores becomes overdue but still
outstanding and lying as Loans under the head “Current Financial Assets”. Similarly,
Interest accrued on loans of Rs. 7.12 Crores is overdue and lying under the head
“Other Current Financial Assets”.

c) The amount overdue for more than ninety days in respect of the Principal and interest
are:

Particulars Amount

No. of cases for non-payment of Interest overdue More than 5 instalments of interest

No. of Cases for non-payment of principal overdue 11 instalments of principal

Principal Amount Overdue 19.03

Interest Overdue 7.12

Total Amount Overdue 26.15

According to the information and explanations given to us, the reasonable steps have been
taken by the Company for recovery of principal amount and interest.

(iv) As per information and explanation given to us, Company has not sanctioned any
loans, investments, guarantees and Security within the provision of section 185 and
186 of Companies Act 2013 except in one case where the Company has granted
unsecured loans to one of its related party – Konkan Railway Welfare Organisation
wherein the rate of interest charged / recovered by the company is 7% which is lower

119