Page 133 - Kolte Patil AR 2019-20
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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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