Page 205 - KRCL ENglish

st
Notes forming part of the Standalone Financial Statements as at 31 March, 2020
27.1 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 Crore 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.

27.2 Deposits from contractors & others for Project includes an amont of ` 25 Crore received from RDSO for
research and development of SKY Bus Technology which is refundable as per the letter received from
Railway Board vide no 2K/Proj/SBM/1/1Pt. dated 26/10/2015.

27.3 Deposits from contractors & others for Project includes an amont of ` 21.47 Crore forfeited from the
parties related to USBRL project. The same needs to be refunded to Northern Railway once the
arbitration proceddings related to this are completed in all respects.

28.

As at As at
31st March 2020 31st March 2019
0.86 0.98
(Refer note 28.1) 478.97 448.68

31.88 13.60
0.46 1.28

7.37 4.43
2.11 1.10
Deferred government grant 2.19 -

523.83 470.07

28.1 Pending verication of the impact of GST in respect of contract awarded for USBRL Project in the pre
GST regime involving excise and Service Tax, certain percentage of deductions from the bill of sub
contractors are kept in Advance related to Projects to the tune of ` 57.74 Crore.

203