2.
Description of Equity Shares, A Equity Shares and B Equity Shares
a)
Equity Shares-
The Equity Shares of the Company carry normal voting right i.e.
Any Shareholder holding 1 Equity Share is entitled to cast 1
vote on poll/ballot. Further, Equity Shares are also entitled
to receive dividend as per the rate recommended by the Board
of Directors etc.
b)
A Equity Shares -
A Equity Shares of the Company are Equity Shares with Differential
Voting Rights (DVR Shares) i.e A Equity Shares carry superior/higher
voting rights as compared to the Equity Shares of the Company.
Precisely, shareholder holding 1 (one) A Equity Share of the
Company would be entitled to cast 100 (one hundred) votes on
poll/ballot as compared to 1 voting right carried by the holder
of each Equity Share. Apart from voting rights which are differential
as aforesaid, every A Equity Share carry same rights as compared
to Equity Shares of the Company.
Securities
& Exchange Board of India (SEBI) vide its Press Release
no. 192/2009 dated 18th June, 2009 had barred listed entities
from raising capital through issue of Equity Shares carrying
superior/higher voting rights. The Company has not issued any
A Equity Shares.
c)
B Equity Shares -
B Equity Shares of the Company are also Equity Shares with Differential
Voting Rights (DVR Shares) i.e. B Equity Shares carry lower
voting rights as compared to Equity Shares of the Company. Precisely,
100 B Equity Share would carry 1 voting right on poll/ballot
as compared to 1 voting right carried by the holder of each
Equity Share. Apart from voting rights which are differential
as aforesaid, every B Equity Share carry same rights as compared
to Equity Shares of the Company.
The
Board of Directors of the company at their meeting held on 19th
September, 2009 felt that the investors/shareholders of the Company
must be given an opportunity to acquire and trade in a new instrument
i.e. B Equity Shares which would be listed at Bombay & National
Stock Exchanges. It had accordingly, recommended issue of B Equity
Shares i.e. DVR Shares with lower voting rights as bonus shares
in the ratio of 1 B Equity Shares for every 10 Equity Shares held.
The shareholders of the company had approved the aforesaid recommendation
of the Board through postal ballot as per its results declared
on 16th November, 2009. Thereafter, the Company had applied to
Securities & Exchange Board of India for certain requisite
exemptions to enable the Company to list these B Equity Shares
with Stock Exchanges. The Company has received the requisite exemption
from SEBI during third week of April, 2010 and 7th May, 2010 was
fixed as Record date for the purpose of ascertaining the shareholders
entitled to receive bonus issue of B Equity Shares.
The
Company expects to list the bonus issue of aforesaid B Equity
Shares by 3rd week of May, 2010.