A) The Company has obtained several premises for its business
operations under leave and license agreements. These are generally not
non-cancelable lease and are renewable on mutual consent on mutually
agreeable terms. Lease payments are recognized in the profit and loss
account as rent expenses amounting to Rs 229.09 (previous year Rs 202.87
B) The Company has given land and building on operating lease for
period ranging from 11 months to 60 months. During the year, the
company has also given plant and machinery on operating lease and has
recognized the lease rent on both assets in the profit and loss account
amounting to Rs 21.55 lacs (Previous Year Rs 22.80 lacs)
2. Forward Contracts
A) The Company uses forward contracts to hedge its risks associated
with fluctuations in foreign currency and interest rates. The use of
forward contracts is covered by Company''s overall strategy. The
Company does not use forward covers for speculative purposes.
B) Part of the foreign currency loans are covered by comprehensive
hedge which effectively fixes liability of such loans and further there
is no additional risk involved post hedging of such loans.
B) The outstanding forward contracts as at March 31, 2012 is Rs 4859.04
Lacs (Previous Year Rs Rs 1564.94 Lacs) in respect of hedging currency
related risk excluding forward contracts as mention in note no.30.
3. Equity dividends
43.1 Dividends declared
The board of directors in its meeting held on May 19, 2011, recommended
a final dividend of Rs 1.50 per equity share of Rs 10 each (15% of face
value) for financial year 2010-11, which was duly approved by the
shareholders of the Company in the Annual General Meeting of the
company held on August 18, 2011.
3.2 Dividends proposed
The board of directors in their meeting held on May 23,2012 have
proposed a dividend of Rs 1.8 per equity share of 10 each (18% of face
value) for the financial year 2011-12. The same is subject to
shareholder''s approval in the Annual General Meeting.
4. Events after the Balance Sheet date
The shareholders in the Extra-ordinary general meeting held on April
23, 2012 approved the allotment of 15,00,000 warrants on a preferential
basis to promoters and other investors as specified in the notice of
the Extra-Ordinary General Meeting issued by the Company on March 23,
2012. The terms and conditions of the allotment are:
a) Each warrant is convertible into 1 (one) Equity Share of the Company
of the face value of Rs 10/- each at a premium of Rs 80/- per share. Each
warrant being priced at Rs 90/- per share.
b) The warrants shall be allotted within a period of 15 days from the
date of passing of the resolutions by the shareholders or within 15
days from the date of approval of regulatory authority, whichever is
c) The warrant shall be compulsorily convertible (at the option of the
Warrant Holder) at any time within a period of 18 months from the date
of allotment of warrants, after the expiry of which they said warrants
shall stand lapsed.
d) The warrant per se, shall not carry any voting rights with them.
e) The Warrant holder(s) shall, on or before the date of allotment of
warrants, pay an amount equivalent to 25% of the total consideration
viz. Rs 22.50/- per warrant and balance consideration of Rs 67.50 per
warrant to be paid on or before the date of the conversion of the
warrants in to Equity Shares.
The Company has received Rs 515.00 Lacs from proposed allotters, being
part consideration against issued of warrant. Pending the in principal
approval from stock exchanges with regards to allotment of warrants,
the Company has not allotted warrants against the advance money
received as at the Balance Sheet date.