153 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 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, 2023 As at March 31, 2022 Current Non-current Current Non-current a) Term loan from Axis Bank (secured) - 2,129.99 - 4,932.95 b) Working capital loan from Axis Bank (secured) 848.62 - - - c) Rupee term loan from related party - 500.00 - - d) Nil (March 31, 2022: 20,00,000) 0% redeemable and non-convertible preference shares of ` 10 each {refer Notes (ii),(iii),(iv) and (v) below and also refer Note 26.3} - - - 172.37 Total 848.62 2,629.99 - 5,105.32 Amount of current maturities of long-term debt disclosed under the head short-term borrowing 190.00 (190.00) 912.31 (912.31) 1,038.62 2,439.99 912.31 4,193.01 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. c) Quarterly statement of current assets filed with banks during the year are in agreement with the books of accounts. 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 were redeemed at par over a period of seven 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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