Page 146 - KRCL ENglish
P. 146

Sr. No.
                Emphasis
                of Matter         Statutory Auditor's Remarks                Management Reply
                Para:


                               According to the information and
                               explanation  given  to  us  and  the    KRCL has acquired the land during
                               record  examined  by  us,  the  title   construction  phase  through  land
                 i (c)         deeds  of  the  leasehold  land  are    acquisition  process  under  Land
                               held in the name of the company.        Acquisition Act 1894 and has clear
                               However,  in  respect  of  freehold     titles  of  all  such  land  through
                               land worth Rs.205.96 Crores held        mutation  process.  Now  the
                               by  the  company,  due  to  lack  of    increase in land value is primarily
                               s u f  c i e n t   i n f o r m a t i o n   a n d   on  account  of  increase  in  land
                               reconciliation with nance, we are      compensation  through  decree  of
                               unable to comment whether all the       various  courts  and  minor  fresh
                               title  deeds  of  such  freehold  land   land acquisition.
                               are  held  in  the  name  of  the
                               Company.

                 iii (a) & (b)  According to the information and
                               explanations  given  to  us,  the       The  sanctions  of  loans  to  KRWO
                               Company has granted unsecured           @7% is as per BOD approval.
                               loans to its one of its related party-
                               K o n k a n   R a i l w a y   W e l f a r e
                               Organization,  covered  in  the
                               register maintained under section
                               189 of the Companies Act,2013, in
                               respect of which:

                               (a)  The  terms  and  conditions  of
                               grant  of  such  loans  are,  in  our
                               o p i n i o n ,   p r i m a   f a c i e ,   n o t
                               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  cost  of
                               funds  to  the  company  and  also
                               lower  than  the  prevailing  yield  of
                               government  security  close  to  the
                               tenor of the loan.

                                                             144
   141   142   143   144   145   146   147   148   149   150   151