During the year 1,30,19,104 fully paid equity shares of Rs.10 each were issued as bonus share on 8th March 2018. The existing permissible reserves of the Company was capitalised for issue of bonus shares in the proportion of two equity shares for every one equity share held by the equity shareholders of the company.
2 (b) Detailed note on the terms of the rights, preferences and restrictions relating to each class of shares including restrictions on the distribution of dividends and repayment of capital.
i. The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each holder of Equity Share is entitled to one vote per share.
ii. In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.
2 (d) Detailed note on Shares reserved to be issued under option and contracts / commitments for the sale of shares / divestments including the terms and conditions.
The company does not have any such contracts / commitment as on reporting date.
2 (e) Detailed terms of any securities convertible into shares, e.g. in the case of convertible warrants, debentures, bonds etc.
- During the year the company had issued 3,20,000 Convertible Warrants to Anita Chennari at value of Rs.820/-. The warrants issued are convertible into equal number of equity shares having face value of Rs. 10/- each with premium of Rs. 810/- per share. Out of the amount recieved during the year 2,84,552 warrants were converted into equivalent number of equity shares. The balance Rs.72,67,360/- were recieved during the year for remaining 35,448 warrants.
- Conversion can happen at anytime from the date of allotment but before the expiry of 18 months from the date of allotment. Convertible warrants are subject to lock-in-period of one years from date of trading approval of the equity shares or such reduced period as may be permitted under the SEBI Issue of Capital & Disclosure Requirements (ICDR) Regulations, 2009 as amended time to time.
2 (f) 70,896 bonus shares have been kept in abeyance / reserved against unconverted warrants.
* Deferred tax assets arising on losses has not been recognized in view of uncertainty in generating the profit in the future.
* As per the information available with the Company in response to the enquiries from all existing suppliers with whom Company deals, none of the suppliers are registered as micro and small enterprises under “The Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March 2018.
(*) stands in the name of one of the directors
(**) The market value of quoted investments is based on the Bombay Stock Exchange quotations as on 31.03.2018 or nearest traded date, wherever available. The market value of shares, for which the quotations of the Bombay Stock Exchange were not available, has been considered as nil.
Note 1 : Disclosure as required by Accounting Standard 15
The disclosures required under Accounting Standard 15 related to “Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006, are given below :
Defined Benefit Scheme
The employee’s gratuity scheme is a defined benefit plan. The present value of obligations are determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the obligation. The obligation for Leave Encashment is recognised in the same manner as gratuity.
Note 2 : The company has provided gratuity payable to its employees at full value without ascertaining the present value of future payment of gratuity as the Payment of Gratuity Act, 1972 is, in view of number of employees, not applicable to the company. The company has recognised as an expense, the short term benefits to its employees such as bonus, leave encashment etc.
Note 3 : The Company has disclosed the segment information in the consolidated financial statements, in accordance with Accounting Standard 17, Segment reporting.
Note 4 : The Company has reclassified, regrouped and rearranged previous year figures, wherever necessary, to conform to this year’s classification.
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