Page 242 - KRCL ENglish

out with the 2nd Rights Issue for INR 196 Crore to the shareholders in their existing
shareholding proportion which was kept open from 1.12.2018 to 29.12.2018
(both days inclusive).
During F.Y. 19-20 the company has allotted shares against 2nd rights issue to the
tune of Rs. 23.52 Crores whereas in June'2020 the remaining shares of 2nd Right
issue were allotted to the shareholder amounting to Rs. 29.40 Crores.

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
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.

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