Amal Ltd 2017-18

Amal Ltd | Annual Report 2017-2018 Note 25 Earnings per share (continued) Note: a) Calculation for weighted average number of shares is given below: Particulars 2017-18 2016-17 Weighted average number of equity shares outstanding at the beginning of the year Number 70,25,000 70,25,000 Add: Conversion effect of equity shares issued during the year Number 11,17,808 - Weighted average number of equity shares outstanding for basic EPS Number 81,42,808 70,25,000 Add: Potential equity shares due to share application money pending allotment Number 12,82,192 24,00,000 Weighted average number of equity shares outstanding for diluted EPS Number 94,25,000 94,25,000 Note 26 Lease The Company has taken land on cancellable lease at Atul from Atul Ltd for 99 years from February 03, 1996 on annual lease rent of ` 8,000. Note 27 Going Concern The Company was declared sick by the BIFR on July 20, 2006 and the BIFR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company, which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors were carried out in the books of account. Subsequently, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through Operating Agency (OA). IDBI Bank Ltd (IDBI), appointed as OA by BIFR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to BIFR on February 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by BIFR in its meeting held on July 01, 2013 as modified sanctioned scheme MS - 13. The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter Company towards advance received against share application money. Further, the Company had applied to Central Board of Direct Taxes (CBDT) for carry forward of business losses beyond eight years which was approved subject to certain conditions specified in CBDT order. Due to adverse market condition and change in regulatory norms in USA, the Company has proposed to shelve the plan of setting-up p -MPAA project as stated in MS-13. However, in order to turnaround, the Management has contemplated other alternatives and considered the Merger with its parent Company Atul Ltd. The Board of Directors had approved the proposed merger of the Company with Atul Ltd at its meeting held on December 05, 2014. The Company had submitted the Modified Draft Rehabilitation Scheme (‘Merger Scheme’) to the BIFR through OA on March 31, 2016, for obtaining their approval. The Central Government has, vide notification dated November 28, 2016, notified ‘The Sick Industrial Companies (Special Provisions) Repeal Act, 2003’ effective December 01, 2016, as a result, the BIFR and AAIFR have been Notes to the Financial Statements