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position  during  that  period  and  consequently  may  have  nancial  impact  during
                   Financial Year 2020-21. However considering the partial relief in travel restrictions,
                   running of special trains and earnings through other segment; projects, the Company
                   expects to sustain and overcome the impact and recover from the present slowdown.
                   In view of this, the consolidated nancial statement has been prepared on Going
                   Concern Basis.
              C)  We draw attention to Note No. 46 of the consolidated nancial statements, that the
                   Balances  of  the  Receivable  and  Payable  accounts  of  Major  Railways,  Suppliers,
                   Contractors  etc.  are  subject  to  conrmation  /  adjustments  /  reconciliations.  The
                   Company will review of such balances for carrying out necessary adjustments in the
                   subsequent years.


              D)  We also draw attention to Note No. 8, 16, 17 & 43.3 of the consolidated nancial
                   statements related to loan given to Konkan Railway Welfare Organisation (KRWO)
                   wherein  the  principal  and  interest  is  overdue  to  the  tune  of  Rs.  26.15  Crores.
                   Furthermore there is disparity in appropriation / adjustment of part amount received of
                   Rs. 2.61 Crores whereby the company has appropriated the amount received towards
                   interest whereas KRWO has adjsusted the same towards principal.

              E)  We draw attention to Note No. 26 of the consolidated nancial statements related to
                   Trade Payable which includes Rs. 708.20 Crores in respect of amount due to Zonal
                   Railways, out of which Rs. 424.38 Crores is outstanding for more than 1 year, including
                   outstanding  of  Rs.  278.59  Crores  for  more  than  3  years,  as  old  as  2004-05  and
                   onwards including old unclaimed amounts.


              F)   We draw attention to Note No. 17 of the consolidated nancial statements related to
                   Other Inter Railway Financial Adjustment (IRFA) Receivables from Zonal Railways
                   amounting to Rs. 356.22 Crores, out of which the outstanding for more than 3 years
                   are Rs.147.59 crores lying since long, as old as 2004-2005 and onwards.


              G)  We draw attention to Note No. 20a.7 of the consolidated nancial statements, which
                   shows that there is a difference of Rs. 214.02 Crores in authorized share capital as per
                   records  of  Ministry  of  Corporate  Affairs  –  MCA  (Rs.  8293.53  Crores)  and  as  per
                   company's records (Rs. 8079.51 Crores). The application given to MCA for correction
                   / reduction in authorised share capital in line with approval of President of India, is not
                   yet acted upon.


              H)  We draw attention to Note No. 12 of the consolidated nancial statements related to
                   Investments wherein presently the Investment of free fund is also kept deposited with
                   Life Insurance Corporation (LIC) in the Group Leave Encashment Scheme, including




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