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Cabinet approves second financial restructuring of Konkan Railway Corporation Ltd.
T he Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved the Second Financial Restructuring proposal of Konkan Railway Corporation Limited( KRCL), a CPSE under the administrative control of the Ministry of Railways( MoR).
The conversion of Non-Cumulative Redeemable Preference Shares( RPS), amounting to Rs. 4,079.51 crore, held by President of India through Ministry of Railways, into Compulsorily Convertible Non-Cumulative Preference Shares( CCPS), has been approved. This will shore up the net worth of the Company after implementation of the new accounting standard IND AS.
Implementation Strategy and targets:
KRCL will have to present the previous year ' s Balance Sheet figures restated as per IND-AS, as on 31st March 2016 and those at the opening of the business i. e., as on 1st April 2015. The conversion of the Non-cumulative Redeemable Preference Shares( RPS) into Compulsorily Convertible non-cumulative Preference Shares( CCPS) w. e. f. 31st March 2015 will make KRCL ' s net worth positive.
Major Impact:
Net worth of KRCL will remain positive. A positive Net Worth for the KRCL is a sine qua non for the purpose of raising funds from the