PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

107 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS The Company was informed by promotors about the inter-se transaction between the Promoter/ Promoter Group on April 29, 2021, April 30, 2021, May 04, 2021, whereby entire holding of FIH Mauritius Investments Limited, Mr. Utkarsh Shah, M/s. Jariwala Trade Link LLP and M/s.Nahoosh Trade Link LLP (collectively called as “Sellers”) were acquired by Mr. Mahesh Babani, Mr. D.B. Rao and Promoter group (collectively called as “Acquirers”). The aggregate promoter shareholding pre and post the inter-se transfers remains the same at the 74.06%. The necessary compliances as required under SEBI (Prohibition of insider Trading) Regulations, 2015 and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 has been complied with by the Acquirers, Sellers and Company. D Aggerate number of shares allotted as fully paid up by way of bonus shares (during 5 years immediately preceding March 31, 2021): Equity shares allotted as fully paid up Bonus shares – Nil (March 31, 2020 – Nil) E Shares allotted as fully paid up pursuant to a scheme of arrangement without payment being received in cash (during 5 years immediately preceding March 31, 2021): During Financial year ended March 31, 2017 – Equity shares of Rs. 10/- each – 12,634,353 shares. 13 b) Other Equity Particulars As at March 31, 2021 As at March 31, 2020 (Restated) General reserve 35,573.76 35,573.76 Capital reserve 1.00 1.00 Retained earnings 31,913.17 20,803.94 Total other equity 67,487.93 56,378.70 The description of the nature and purpose of each reserve within equity is as follows: A General reserve As per the approved scheme of arrangement (Demerger) between the Privi Organics India Limited, Fairchem Specialty Limited and Privi Organics Limited during the period ended March 31, 2017 the excess of book value of assets over liabilities is treated as general reserve. B Retained earnings Retained earnings represent the amount of accumulated earnings/ (losses) at each Balance Sheet date of the Company, prepared in accordance with the basis of preparation section. C Capital Reserve As per the approved Scheme of Arrangement and Amalgamation amongst Fairchem Speciality Limited (Demerged/ Transferee Company) and Privi Organics India Limited (Transferor Company). vide NCLT Mumbai order dated June 30, 2020 all the assets, liabilities and reserve pursuant to the scheme, have been transferred at carrying amount and the difference if any being the excess is treated as capital reserve. D The Capital management objective of the Company is to (a) maximize shareholder value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital. For the purposes of the Company’s capital management, capital includes issued equity share capital, share premium and all other equity. The Company monitors capital using debt-equity ratio, which is total debt less liquid investments and bank deposits divided by total equity. NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 13 a) Share Capital (continued)