OPTION ON SHARE CAPITAL

Schedule VI, Part I, requires disclosure of the particulars of any option on unissued share capital. An option on shares arises when a person has acquired a right under an agreement with the company to subscribe for share in the company if he so chooses. Such options generally arise under the following
circumstances :

1.  Under the promoter’s agreements, subsequently ratified by the company;
2.  Collaboration agreement;
3.  Loan agreements, debenture deeds (Refer to Section 81 of the Companies Act);
4.  Agreements to convert preference shares into equity shares; and
5. Other contracts, such as for supply of capital goods and/or merchandise.