Page 261 - KRCL ENglish

Due to this the age wise analysis of the outstanding dues, classication of Micro and Small
Enterprises and details of timely repayment of dues could not be generated from IT
System and manual intervention is involved in this aspects.

b) Consumption of Inventory and Stock lying at the respective storage locations are not yet
maintained in IT Systems and manual records are maintained by the company at each
storage locations. Due to which, the details regarding the Movement Analysis, Age-wise
analysis and purchase of inventories despite having sufcient inventory balances could
not be generated from the IT system and manual intervention is involved in this aspects.

c) Fixed Asset Register is not maintained in IT System and complete records are maintained
in the excel le. Due to which manual calculations have been carried out for working of
Depreciation amount which involves the manual intervention in this process.

d) Non-generation of ledgers with no transactions during the current nancial year, while
generating all ledgers in excel workbook.

e) Contractors Bills are maintained Contract wise manually but the report containing the
Contract wise details along with initial history is not generated from the IT System.

However, in respect of the above we do not found any material deviation from the standard
procedures adopted by the company in so far as it relates to the adequacy of the internal nancial
controls over the nancial reporting and there is no material nancial impact. And we recommend
to implement the above procedures through IT systems in order have better internal nancial
controls.

Our opinion is not modied in respect of these matters.

Other Matters
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating
effectiveness of the internal nancial controls over nancial reporting insofar as it relates to one
associate company – Jaigarh Digni Rail Limited, the company incorporated in India, is based on
the corresponding report of the auditor of such company.

Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
Holding Company and its associate company, which are the companies incorporated in India,
have, in all material respects, an adequate internal nancial controls system over nancial
reporting and such internal nancial controls over nancial reporting were operating effectively as

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