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23. MEMORAANDUM OF UNDERSTANDING (MOU) RATINGS

Department of Public Enterprises has assigned “GOOD” MOU rating to the
Corporation for the year 2018-19. The overall performance of Corporation in
terms of MOU Parameters for the year 2019-20, is expected to be “FAIR”.

24. DIVIDEND

The Board of Directors do not propose to recommend for payment of dividend
during the year under review.

25. RESERVES

In view of accumulated losses, the Board of Directors do not propose to transfer
any amount to Bond/Debenture Redemption Reserve in terms of the Companies
(Share Capital and Debentures) Rules 2014, which mandates the Corporation to
create a Debenture Redemption Reserve for the purpose of redemption of
Debentures.

26. INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

The Corporation had issued Bonds to public in the year 1994 & 1997 through 2A &
6B series Bonds resp. The unclaimed and unpaid amounts on these Bonds were
transferred to IEPF Authority as per Section 205C of Companies Act, 1956, now
under Section 125 of the Companies Act, 2013. As per the provisions of the said
Act, the Bondholders, whose unclaimed and unpaid interest and redemption
amount was transferred to the IEPF, can now claim the said amount from IEPF
Authority by obtaining verication report from the Corporation. In this regard,
Corporation has been issuing verication report to IEPF authority, in connection
with claims of the Bondholders, as per IEPF Rules, 2016. IEPF Authority has
issued claims of the eligible Bondholders.

27. A STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF A
RISK MANAGEMENT POLICY FOR THE COMPANY INCLUDING
IDENTIFICATION THEREIN OF ELEMENTS OF RISK, IF ANY, WHICH IN THE
OPINION OF THE BOARD MAY THREATEN THE EXISTENCE OF THE
COMPANY.

The Corporation has in place a Risk Management Policy in line with the DPE
Guidelines on Corporate Governance for CPSEs to ensure the integration and

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