Page 185 - Kolte Patil AR 2019-20

Consolidated Statement of Changes in Equity
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) Capital Reserve on Consolidation
Capital reserve on consolidation has created in the process of consideration under consolidated balance sheet. This has occurred when the amount paid by the holding company for its interests in subsidiary company is less than under lying net assets value.
(f) Debenture Redemption Reserve
The Company has created debenture redemption reserve pursuant to Section 71(4) of the Act.
(g) Retained Earnings
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.
In terms of our report attached.
For Deloitte Haskins & Sells LLP
Chartered Accountants
Saira Nainar
Partner
Place : Mumbai Date : June 23, 2020
For and on behalf of the Board of Directors Rajesh Patil
Milind Kolte
Executive Director
(DIN:00170760)
Vinod Patil
Company Secretary
Chairman & Managing Director
(DIN:00381866)
Gopal Sarda
Chief Executive Officer
Place : Pune
Date : June 23, 2020
Atul Bohra
Chief Financial Officer
Annual Report 2019-20 | 183