Page 133 - Kolte Patil AR 2019-20

Nature and Purpose of reserves
(a) Securities Premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of section
52 of the Act.
(b) General Reserves
General reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation purposes. As
the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income,
items included in the general reserve will not be reclassified subsequently to statement of profit and loss.
(c) Share Option Outstanding Account
Share option outstanding account is credited when the employee share based payments expenses are recognised on granting of the
share options and in turn transferred to seurities premium / equity share capital on excecise of the share options.
(d) Capital Redemption Reserve
Capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium as per section
69 of the Act. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is
utilized in accordance with the provisions of section 69 of the Act.
(e) Debenture Redemption Reserve
The Company has created debenture redemption reserve pursuant to Section 71(4) of the Act.
(f) RetainedEarnings
Retained earnings, or accumulated earnings, are the profits that have been reinvested in the business instead of being paid out in
dividends. The number represents the total after-tax income that has been reinvested or retained over the life of the business.
(g) Capital Reserve
Captial Reserve is created on account of amalgamation (Refer note 46).

In terms of our report attached.
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Saira Nainar Rajesh Patil Milind Kolte
Partner Chairman & Managing Director Executive Director
(DIN:00381866) (DIN:00170760)
Gopal Sarda Atul Bohra Vinod Patil
Chief Executive Officer Chief Financial Officer Company Secretary

Place : Mumbai Place : Pune
Date : June 23, 2020 Date : June 23, 2020

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