Ruturaj Pencils Private Limited

On December 11, 2020, Mr Vasant Patel and Mr Laxmikant Patel, the Directors of Ruturaj Pencils Pvt. Ltd., received a proposal from an outsider Mr Gautam Sharma, Marketing Head of a leading pencil brand in India. They had to decide whether to accept his proposal (Exhibit 12.1) of Rs 40 million and allow him to be a board member of the company in exchange for a 30% profit share. Ruturaj Pencils Pvt. Ltd. was involved in manufacturing polymer pencils and selling them in various parts of Gujarat. The quality of their pencils was of international standard as non-toxic and CE certified. The older generation of Patel brothers had called a meeting on January 2, 2021, that included their sons, as they had to decide jointly. They also wanted to understand the next generation's opinion on Mr Sharma's proposal.