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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