Aarvi Encon Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2018

1 Corporate information

"Aarvi Encon Limited (referred to as ""the Company"") is a Human Resource Company, offering capable manpower resources to businesses. The Company was incorporated as Aarvi Encon Private Limited under the provisions of the Companies Act 1956 vide certificate of incorporation dated December 03, 1987, issued by the Registrar of Companies, Maharashtra, Mumbai. Subsequently, the name of the Company was changed to Aarvi Encon Limited pursuant to conversion into a public company vide Shareholders'' approval on June 13, 2017 and fresh certificate of incorporation dated July 05, 2017 issued. The Company undertook an Intial Public issue of equity shares and subsequently got its equity shares listed on the National Stock Exchange, Emerge (SME Segment) with effect from 05.10.2017"

1 Pursuant to the resolution passed by the Shareholders of the Company in the Extra Ordinary General Meeting of the Company held on April 28, 2017, each existing Equity Share of the Company having face value of Rs. 100/- (Rupees Hundered) each has got sub-divided into 10 (Ten) Equity Shares having face value of Rs. 10/-(Rupees Ten) each fully paid up.

2 The Company has issued and allotted 77,50,000 equity shares of Rs. 10/- each to the eligible holders of equity . . shares as per the Board resolution dated July 17, 2017 by capitalizing reserves. The basis of issue is five (5) shares for every two (2) shares held.

3 (a) The Company has issued and allotted 39,34,000 equity shares of Rs. 10/- each at a premium of Rs. 44/- per share as per Board resolution dated September 29, 2017.

(b) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs 10 each. Each shareholder is eligible for one vote per share held. The final dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(c) Particulars of shareholders holding more than 5% shares of the aggregate shares of the Company

1 First charge on office preimises located at Marathon Nextgen Realty Limited, Lower Parel (Mumbai) and second charge on all present and future movable fixed assets. It is repayable in 59 equated monthly instalments of Rs 5,83,333/-(excluding interest) each commencing from September 2012 onwards.

2 Vehicle loan is secured by hypothecation of Motor Vehicle purchased with the loan amount. It is repayable in 84 equated monthly instalments of Rs 48,200/- each (including interest), commencing from November 2013 onwards.

3 Vehicle loan is secured by hypothecation of Motor Vehicle purchased with the loan amount. It is repayable in 35 equated monthly instalments of Rs 16,385/- each (including interest), commencing from May,2017 onwards.

Notes:

1 In respect of Cash Credit from Yes Bank

a. Pari Passu charge on hypothecation charge on Current Assets and all movable fixed assets.

b. Equitable mortgage of commercial properties located at Shah & Nahar Industrial Estate, Lower Parel (Mumbai), Jetalpur (Baroda), and Marathon Nextgen Realty Limited, Lower Parel (Mumbai).

c. Unconditional and Irrevocable Personal guarantees of Mr Jaydev Sanghavi, Mr Virendra Sanghavi and Mrs Niranjana Sanghavi.

d. Rs. 73,50,000/- in the form of fixed deposit receipt placed under bank lien.

2 In respect of Cash Credit and Working Capital demand loan from Citi Bank

a. First Pari Passu charge on present and future stocks, book debts and movable fixed assets.

b. Pari Passu charge on property located at - Shah & Nahar Industrial Estate, Lower Parel (Mumbai), Jetalpur (Baroda), Marathon Nextgen Realty Limited, Lower Parel (Mumbai) and Flat No 11 & 11A, Building O, 4th Floor, Konark Campus Cooperative Housing Society, Lohegaon Village, Taluka Haveli, Pune.

c. Personal guarantees of Mr Jaydev Sanghavi, Mr Virendra Sanghavi and Mrs Niranjana Sanghavi.

d. Pledged fixed deposits amounting to INR 30,00,000/-.

Note 2 Employee benefit plans

2.1 Defined contribution plans

The Company makes contributions towards Provident Fund and Employee State Insurance Scheme which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. The Company recognised Rs 6,36,38,764/- (previous year: Rs 4,64,15,416/-) towards contributions to the following defined contribution plans.

2.2 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity - funded (included as part of ''Salaries & wages including contribution to provident fund'' in Note 21 Direct expenses). The Company provides the Gratuity benefit through annual contribution to a fund managed by Aditya Birla Sun Life Insurance Company Limited.

ii. Compensated absences - unfunded (included as part of ''Salaries, wages and bonus'' in Note 19 Employee benefits expense)

(i) The Company has sub divided its euity share of Rs 100 each into 10 Equity share of Rs 10 each with effect from April 28, 2017.

(ii) "Further, the company has issued bonus shares to its existing shareholders on the basis of issue 5 shares for every 2 shares held with effect from July 17, 2017."

(iii) The resultant shares on account of sub division and bonus have been considered in computation of weighted average of equity shares for the current year and previous year.

Note 3 Interest in joint venture

The Company has 30% interest in Aarvi Encon Arabia. The Company has written off the said investment is books of accounts. However, the said Joint Venture is yet to be dissolved.

Note 4. Events occurring after the Balance Sheet Date

The board of directors of the company has proposed a dividend of 5% per share vide resolution dated May 19, 2018. However, the same is subject to approval of shareholders in Annual General Meetings.

Note 5. Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.