Page 134 - KRCL ENglish

Management Replies to the Statutory Auditor's Remarks for the
Financial Year ended 31st March 2020.

Sr. No.
Emphasis
Statutory Auditor's Remarks Management Reply
of Matter
Para:

A) We draw attention to Note No. 7.2 Factually Correct
of the standalone nancial
statements and independent
auditors report of associate
company wherein the auditor have
given emphasis on the material
uncertainty related to going
concern due to invocation of Bank
guarantee by the company due to
failure in attaining the milestone of
nancial closure and due to
unavoidable change in basic
assumptions of the project,
whereby the lenders have asked to
submit the revised project report &
market study for nancing
arrangement. Till then the project
was kept on hold for further
development. However the
management of Associate
C o m p a n y a s w e l l a s t h e
Management of the Company are
o p t i m i s t i c o f r e v i v a l a n d
completion of the project, due to
which provision for impairment of
investment in associate company
has not been considered and
accounts are drawn on going
concern basis.

B) We draw attention to Note No. 13.2 Factually Correct
of the standalone nancial
statements related to amount due
from Udupi Power Corporation Ltd

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