Page 189 - KRCL ENglish

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Notes forming part of the Standalone Financial Statements as at 31 March, 2020

2019
Financial Asset Measured at cost, Unquoted

7.1 The Corporation has made long term equity invesment in Jaigarh Digni Rail Limited (JDRL) with 26%
holding and thereby, in terms of Ind-AS 28 the Corporation has signicant inuence in JDRL.

7.2 JDRL is a JV company in which KRCL and Maharashtra Maritime Board ( MMB) holds 26% and 11 %
equity respectively and balance held by JSWJPL .JDRL was formed for construction ,operation and
maintenance of a Railway system for providing port connectivity. JDRL has entered into the requisite
Concession agreement with KRCL on behalf of Ministry of Railways, Government of India . Despite
requisite nancial tie up of the project, due to internal constraint imposed by RBI the bankers could not
lend the funds. Thereafter due to unavoidable change in basic assumptions of the project, the lenders
have asked to submit the revised project report and market study based on revised assumptions. For
the same the associate company has decided to review market study of the project through
independent consultant based on the revised assumption and till then project was kept on hold for
further development, taking all the safeguards for the project site and constructions already done.In the
meantime KRCL on behalf of Ministry of Railways, Government of India, has en-cashed the Bank
Guarantee of ` 23.26 Crores and kept it as liability, on the failure of JDRL to achieve the milestone of
Financial closure. However, the management of the associate company is optimistic about the
resumption of the work and based on that associate company have prepared nancial statement on
the going concern basis although there is a temporary suspension of the project.The Management of
Corporation too are optimistic of revival and completion of the project, due to which provision for
impairment of investment in associate company has not been considered.

2019

1.30
1.30
8.1
The KRWO has executed mortgage deed (not registered) in favour of the Corporation for land purchased at
Ulve, Suratkal, Madgaon and Ratnagiri. The loan has been classied as unsecured.

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