Page 196 - KRCL ENglish

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Notes forming part of the Standalone Financial Statements as at 31 March, 2020
20a

2019

20a.1 Rights, preferences and restrictions attached to Equity Shares

Equity Shares

The Corporation has only one class of equity shares having a par value of ` 1000/- each.

The Corporation was incorporated as a joint venture between the Central Government of India acting
through Ministry of Railways and the participating State Governments of Maharashtra, Goa, Karnataka
and Kerala to construct and operate the Konkan Railway Broad Gauge Line (KR Route). The
Corporation was originally intended to be merged with Indian Railways upon completion of 15 years or
as and when its loan liabilities are fully discharged, whichever is earlier. According to the initial MOU, the
government of India would pay the contributions made by state governments towards equity at par,
after the corporation liquidates the loan obtained for completing KR route. However, on 7th January
2009, Ministry of Railways communicated the approval of Cabinet Committee on Economic Affairs that
the Corporation shall continue as a Central PSU even after discharge of its debt liabilities.

The holders of the equity shares are entitled to receive dividends as declared from time to time and are
entitled to voting rights proportionate to their share holding at the meetings of shareholders. In the
event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the
remaining asset of the company after distribution of all preferential payments. The distribution will be in
proportion to the number of equity shares held by the shareholders.

20a.2 Calls in Arrears
It represents outstanding call money towards equity shares from Ministry of Railways. The Issued
Equity share capital of corporation is `1259.54 crore out of which Ministry of Railways hold 53% of the
stake i.e.`669.36 Crore, out of these the corporation received an amount of `669.35 crore towards
Equity share capital and the balance amount of `0.01 crore is outstanding.

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