Page 109 - KRCL ENglish

The Board of Directors in their meeting have allowed for receiving the subscription
from the shareholders even after the closure of Rights Issue.

Likewise in the F.Y. 2019-20 the Company has announced 3rd Right issue of Rs. 490
Crores to the shareholders in their existing shareholding proportion which was kept
open for the period 16/12/2019 to 14/01/2020. However till the year end no amount
was received against the same. Consequently, the Board of Directors in their meeting
have allowed for receiving the subscription from the shareholders even after the
closure of Rights Issue.

iv) Non Compliance of Section 42 of the Companies Act 2013
We draw attention to clause xiv of the Annexure A to this report - .
The share application money received for 2nd right issue is not kept in a separate
bank account in a scheduled bank and the company has not allotted shares within 60
days from the date of receipt of amount to one of the shareholder - Government of
Karnataka of Rs. 19 Crores.

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

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
signicance in our audit of the standalone nancial statements of the current period. These
matters were addressed in the context of our audit of the standalone nancial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described below to be the key audit
matters to be communicated in our report.

Sr. The Key Audit matters How our audit addressed the key
No. audit matter / Auditor's Response
1. Accuracy of recognition, measure- Our key audit procedures included and were not
ment, presentation and disclosures limited to the following:
of Leases and other related
balances in view of adoption of Ind • Assessed and tested new processes and
AS 116 “Leases” (new Indian controls in respect of the lease accounting
accounting standard) standard (Ind AS 116);

With effect from 1st April, 2019, Ind AS • Assessed the identication of leases based on
116 – “Leases” (Ind AS 116) the contractual agreements and our knowledge
supersedes Ind AS 17 – “Leases”. The of the business.
Company has adopted Ind AS 116,
retrospectively with the cumulative • Evaluate the reasonableness of the discount
effect of initially applying the standard, rates applied in determining the lease liabilities;

107