Page 186 - KRCL ENglish

Notes forming part of the Standalone Financial Statements

3.1. In accordance with the provisions of Ind AS the effect of prior period depreciation
accounted for during the year is `0.58 Crores (`1.76 Crores), by restating the previous
year gures for the depreciation relating to FY 2018-19 and retained earnings for
depreciation relating to period prior to 2018-19. Consequently the opening Gross
block and depreciation block of relevant Fixed Assets has been reduced and
restated.

3.2. Fixed assets exclude track measuring 185.275 km’s (of gross value `131.66 Crore)
was sold to consortium led by IL&FS in the F.Y. 1995-96. Subsequently the same was
sold by consortium led by IL&FS to Ministry of Railways in the F.Y. 2003-04. Thereafter
the same was leased back by Railways to Corporation.

3.3. In cases where most of the works have been completed and only some portion remain
to be executed but the assets is ready for put to use, then the value of same is
capitalized based on the technical assessment.

3.4. On all the capital cost relating to construction / erection etc. of any xed assets
involving assistance and monitoring of manpower of KRCL, the Corporation charges
specied % of cost of project for Engineering, Electrical and S&T Department as
‘Direction & General (D & G) Charges’ in accordance with the Railway Board
guidelines.

3.5. The Corporation is having the regular program for physical verication of xed assets.
Adjustment on account of discrepancy, if any, is carried out after due verication and
reconciliation.

3.6. Land cost includes indirect expenses incurred in the process of acquisition of land and
the interest paid as per the court order in connection with enhancement of
compensation of land price. Provisional advance payments consequent to awards
based on certicates of Special Land Acquisition ofcer (SLAO) is adjusted as and
when nal awards and acquaintance details are certied by the SLAO’s.

3.7. 8.50% 2500 taxable bonds of 17-I series amounting to ` 250 Crores have been issued
for capital projects which includes additional Stations and Looplines. The net interest
during capitalization period amounting to ` 11.17 crore (net of interest payable ` 21.25
crore, interest earned ` 7.18 crore) on these bonds is charged to related Project in
accordance with Ind AS23. Interest amounting to ` 2.90 Crore on these Bonds
charged to Prot and Loss during the year.

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