Page 47 - KRCL ENglish

The procedures are in the form of manuals, guidelines, delegation of powers and
IT system and controls which are affected through people operating in various
departments within the Corporation at different levels at each stage of the
processes. These are designed to ensure compliance with the internal nancial
controls as detailed in the Companies Act, 2013 and prevalent on Indian
Railways. In order to ensure that all checks and balances are in place and all
internal control systems are in order, regular and exhaustive internal audits are
conducted by experienced independent rms of Chartered Accountants in close
co-ordination with Corporation's own internal audit Department.
Internal Audit covers all areas of operation of the Corporation, as per annual
Internal Audit Program. Internal Audit helps in improving accuracy and efciency
of transactions and operations by undertaking review of in-built controls, scrutiny
of payments and expenditure and examination of nancial and technical records
of the Corporation. The internal audit reports for Financial Year 2019-20 were
received on quarterly basis and their observations were taken up at the
management level. A summary of Audit Observations and Action Taken Reports
were regularly placed before the Audit Committee and the recommendations of
the Audit Committee were duly complied with by the Corporation.

28.5 Secretarial Auditor

The Board of Directors appointed M/s. Rupali Abhyankar & Co., Practicing
Company Secretaries, to conduct Secretarial Audit for the year 2019-20. The
Secretarial Audit Report for the year ended March 31, 2020 is placed at Annexure
– 1.

28.6 Maintenance of Cost Records

The Corporation is not required to maintain cost records as specied by the
Central Government under sub-section (1) of section 148 of the Companies Act,
2013, as it falls under table of non-regulated sectors under heading as “Railway or
tramway locomotives, rolling stock, railway or tramway xtures and ttings,
mechanical (including electro mechanical) trafc signaling equipment's of all
kinds; (8601 to 8609) for the reason that, the provision of Chapter Codes and
description (ITC HSN) is applicable for the company which is in production of
Railway or tramway locomotives, rolling stock, railway or tramway xtures and
ttings, mechanical (including electro mechanical) trafc signaling equipment's
of all kind.

29. CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Corporation prepared in

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