BUYBACK WITHDRAWAL BY KPR MILL

SMALL INVESTORS’ WELFARE ASSOCIATION

Regn No. F-72744 (M)

703, Meadows, Sahar Plaza Complex, Andheri Kurla Road, J.B. Nagar, Andheri ( E) , Mumbai 400 059

Email : SirenBajao@gmail.com Tel : +91-22-4215 1349

The above company has informed BSE that they approached you with their desire to withdraw the already announced Buy-Back offer of shares. The reasons given are:

1.    “Increase in the amount of Buyback obligation due to the tax proposal in the Finance Bill 2019”

2.    Not permitted to increase the buyback amount beyond the amount approved by shareholders.

3.    In case the offer is implemented they have to borrow which is not permitted.

We would like to point out that as per  Buyback of Securities Regulations clause 24 (I) (d) it cannot be withdrawn.

“the company shall not withdraw the offer to buy-back after the 

Tax draft letter of offer is filed with the Board or public announcement 

of the offer to buy-back is made;”

The only problem the management is having is the requirement of additional funds to pay the Income Tax. We would like point out as follows:

·       No action to defeat a  Tax provision of the country can be encouraged.

·       As per the extant provision of law such withdrawal permission cannot be allowed.

·       No tax payment can be refused for want of sanction by the Board or the shareholders.

In the circumstances, we urge you to please reject such request for withdrawal of Buyback offer already announced.