By Himanshu V. Kishnadwala
Chartered Accountant
fiogf49gjkf0d
From Notes to Accounts:
(a) Director’s remuneration*
(i) Liabilities in respect of gratuity pension and leave encashment (for one of the directors) as the same is determined on an actuarial basis for the company as a whole.
(ii) Compensation cost of Rs. nil for the loss of office to a director (previous year Rs.481.38).
Mr. Arun Sawhney was appointed as the Managing Director of the Company with effect from 20th August 2010 for a period of three years. The appointment and remuneration of Mr. Arun Sawhney as the Managing Director has been approved by the Board of Directors, but the requisite regulatory approval from shareholders is yet to be obtained. In accordance with the remuneration determined by the Board of Directors, Rs.32.91 (including commission) has been accounted for as an expense in the Profit and Loss Accounts for the year ended 31st December 2010.
From Auditors’ Report: (f) Without qualifying our report, we draw attention to Note 14 of Schedule 23 of the financial statements, wherein it is stated that the appointment and remuneration of Mr. Arun Sawhney as the Managing Director of the Company with effect from 20 August 2010 has been approved by the Board of Directors, but the requisite regulatory approval from shareholders is yet to be obtained. In accordance with the remuneration determined by the Board of Directors, Rs.32.91 million (including commission) has been accounted for as an expense in the Profit and Loss Account for the year ended 31st December 2010.
