153 Nature and purpose of other 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 the Companies Act, 2013. b) Retained earnings Retained earnings are the profits that the Group has earned till date, less, any transfers to general reserve, any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders. c) Other reserves As per Modified Sanction Scheme MS-10 and MS-13 approved by the Board of Industrial Finance and Reconstruction, the Company had issued 0% redeemable and non-convertible preference shares of ` 1,000 lakhs to Atul Ltd (promoter) and received interest free secured loan of ` 1,128.89 lakhs and interest free unsecured loan of ` 539.58 lakhs from Atul Ltd. These financial liabilities are measured at amortised cost and the initial fair value difference is recognised as capital contribution from Atul Ltd. (` lakhs) Note 11 Borrowings As at March 31, 2022 As at March 31, 2021 Current Noncurrent Current Noncurrent a) Secured loan from Axis Bank - 4,932.95 - 244.13 b) 20,00,000 (March 31, 2021: 40,00,000) 0% redeemable and non-convertible preference shares of ` 10 each {refer Notes (iii),(iv) and (v) below and also refer Note 26.3} - 172.37 - 320.92 Amount of current maturities of long-term debt disclosed under the head ‘short-term borrowing’ 912.31 (912.31) 148.55 (148.55) 912.31 4,193.01 148.55 416.50 Notes: i) Security a) The secured loan is secured by the whole immovable and movable properties including machinery, machinery spares, tools and accessories, inventory and other movable assets both present and future. b) Corporate Guarantee given by Amal Ltd. ii) Terms | rights attached to preference shares The Group has only one class of 0% redeemable and non-convertible preference shares having a par value of ` 10 per share. These shares are redeemable at par over a period of 7 years, starting ` 100 lakhs every year from financial year 2016-17 to 2019-20 and ` 200 lakhs every year from financial year 2020-21 to 2022-23. Note 10 Other equity (continued)
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