Exporters from India shahlon-industries shahlon-infra fairdeal-filaments

FREQUENTLY ASKED QUESTIONS:

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  • 1. Dematerialization of shares
    • (a) What is meant by Dematerialization?

      The process of converting securities (i.e. shares, bonds etc.) held in physical form into electronic form is known as dematerialization. Under this process securities held by an investor in physical form are converted to an equal number of securities in electronic form and credited into the investor's Demat Account maintained by him with his Depository Participant (DP).

      (b) How can I convert my share certificates in Dematerialized form?

      » Open a Beneficiary Account (Demat Account) with a DP registered with SEBI and with any one of the Depositories i.e., NSDL or CDSL.
      » Submit the Dematerialization Request Form (DRF) (in triplicate) to your DP duly filled in and signed by all the shareholders, along with share certificate(s) and requisite documents. Ensure that the names and order of names as per certificate(s) matches with the names and order of the names as per the DP account.
      » Obtain an acknowledgement from the DP.
      » On receipt of DRF as above, DP will generate a Dematerialization Request Number (DRN) and the said DRN is electronically transmitted to the Company / Registrar and Transfer Agent (RTA) through the concerned Depository.
      » Simultaneously, DP will send the physical share certificate(s) with original DRF to the Company/RTA for verification and confirmation.
      » The Company/RTA, on receipt of DRF and share certificate(s) as above, will process the said request and if the DRF is found to be in order {viz. verification of signature and certificate(s)}, will electronically confirm the said request.
      » The DP, on receipt of such confirmation, will update the Demat account of the investor.

      NOTE: THEREFORE, UNDER NO CIRCUMSTANCES SHOULD YOU SUBMIT YOUR DRF AND SHARE CERTIFICATE(S) DIRECTLY TO THE COMPANY/RTA.

      (c) What are the advantages of holding securities in Dematerialized form?

      » A safe and convenient way to hold securities.
      » Immediate transfer of securities.
      » No stamp duty on transfer of securities.
      » Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.
      » Reduction in paperwork involved in transfer of securities.
      » Reduction in transaction cost.
      » No odd lot problem, even one share can be traded.
      » Direct credit of dividend to your Bank Account registered with your DP.
      » Nomination facility.
      » Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately.
      » Transmission of securities is done by DP eliminating correspondence with companies.
      » Automatic credit into Demat account of shares, arising out of IPO/Rights/bonus/split/consolidation/merger etc.
      » Holding investments in equity and debt instruments in a single account.

      NOTE: IN VIEW OF ABOVE ADVANTAGES, WE STRONGLY RECOMMEND THE SHAREHOLDERS HOLDING SHARES IN PHYSICAL FORM TO CONSIDER DEMATERIALIZATION OF THEIR SHARE CERTIFICATES AT THE EARLIEST.

      (d) Whom should I inform about change in my address, bank account details etc. in respect of shares held in Demat form?

      Since your Demat account is maintained by your DP, all request/communication regarding change in address, bank account details, ECS mandate, registration of nomination etc. should be addressed to your DP directly. As the Company has no access to your depository account, services pertaining to the above cannot be provided by the Company.

       

      (e) Whom should I contact in case of non-receipt of dividend, bonus etc.?

      Since dividend, bonus and other corporate benefits are declared / issued by the Company, you need to contact the Company Official, quoting your beneficiary account number (i.e. Client ID) and DP ID.

  • 2. Change of Address
    • (a) What is the procedure for effecting change in address of communication in records of the Company?

      The following procedure should be followed by shareholders for effecting change/correction in address of communication recorded with the Company:

      If shares are held in physical form - Kindly submit duly filled and signed "Intimation Form for Change/Correction in Address of Communication" (to be downloaded from link provided here in below) along with a self-attested copy of new address proof (e.g. Driving License, Passport, Ration Card and Light Bill/Gas Bill) at the Registered Office of the Company. Kindly note that the address proof submitted must be in the name of the first holder of the shares of the Company.

      If shares are held in dematerialized form - Kindly submit "Address Update Request Form" to Depository Participant with whom the shareholder holds securities of the Company in Demat Form.

      Download - Intimation Form for Change/Correction in Address of Communication

  • 3. Remittance of dividend through NECS/Change in ECS Details
    • (a) What is NECS?

      NECS (National Electronic Clearing Service) is a mode of electronic funds transfer for transactions that are repetitive and periodic in nature. NECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity /water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, etc.

      (b) What are the advantages of NECS w.r.t remittance of dividend?

      » Avoid loss of document in postal transit, whereby issue of duplicate warrants is avoided.
      » Prompt credit of remittance of dividend to the bank account of the investor through electronic clearing.
      » Investor need not make frequent visits to his bank for depositing physical paper instruments.
      » Coverage of more bank branches country-wide and ease of operations for the remitting agencies.

      NOTE: IN VIEW OF ABOVE ADVANTAGES, WE STRONGLY RECOMMEND THE SHAREHOLDERS TO PROCEED TOWARDS NECS REGISTRATION WITH THE COMPANY FOR RECEIVING DIVIDEND THROUGH ELECTRONIC MODE.

      (c) How can I register to avail ECS facility for receiving dividend of the Company?

      The Company provides the facility for remittance of dividend to Shareholders through NECS (National Electronic Clearing Service) / RTGS (Real Time Gross Settlement) / NEFT (National Electronic Funds Transfer).

      If shares of the Company are held in physical form - Kindly submit following documents at the Registered Office of the Company -

      (i) Duly filled and signed ECS Mandate Form (To be downloaded from the link provided here in below)
      (ii) Complete set of documents as mentioned in ECS Mandate Form must be enclosed with ECS Registration Form.

      On receipt of the above documents, the Company will record the said details in your folio so that the dividends declared by the Company can be credited to your bank account.

      If shares of the Company are held in Demat form - Kindly submit the details to Depository Participant with whom the shareholder holds securities of the Company in Demat Form.

      Download - ECS Mandate Form

      (d) Will I receive my dividend if I do not furnish the new bank account number to the Company?

      In case you do not furnish the new bank account number as aforesaid, credit of dividends through NECS to your old bank account number may be rejected or returned by the banking system. However, in such cases, the Company would issue physical dividend warrant/Demand Draft to the concerned shareholders post such rejection.

      Hence, it is recommended to update your new bank details with the Company or Depository Participant, whichever is applicable, by following the above mentioned procedure.

      It is recommended that you periodically verify your bank statement to confirm credit of dividend, interest etc.

      (e) Is it compulsory for Shareholders to NECS facility?

      It is recommended that you avail of the NECS facility as it facilitates faster credit of remittance to your bank account.

  • 4. Transfer of shares
    • PAN Card mandatory for Transfer of Shares in physical form

       

      The Securities and Exchange Board of India, vide its Circular no. MRD/DoP/Cir-05/2009 dated 20th May, 2009, has clarified that for securities market transactions and off-market/ private transactions involving transfer of shares in physical form of listed companies, it shall be mandatory for the transferee(s) to furnish copy of PAN Card to the Company/ RTAs for registration of such transfer of shares.

      Accordingly, for registration of transfer of shares of the Company in physical form, transferees are requested to furnish self-attested copies of their PAN Cards to MCS Ltd. (Registrar & Share Transfer Agent -RTA) or Company. In case of multiple transferees, each transferee will be required to submit self-attested copy of his/her PAN Card.

      The aforesaid Circular of SEBI is attached below for ready reference:-

      Download - SEBI Circular

      (a) What is the procedure for Transfer of Shares held in the Physical form?

      Execute share transfer deed in prescribed Form SH-4. Kindly mention complete address (along with pin code number) on the deed and it should be duly signed by both the parties to the transfer.

      As per Article 62(a) of Schedule 1 of Indian Stamp Act, 1899, it is required to affix share transfer stamps@0.25% of total consideration based on market value of shares as traded on the date of execution of transfer.

      Forward the share transfer deed along with the share certificate(s) stated therein to MCS Ltd. - RTA or at Registered Office of the Company.

      Download Form - SH-4

      (b) What is the procedure to add the name of another person as a joint-holder?

      Addition of name is deemed to be transfer of shares. In such cases, the procedure laid for transfer of shares as stated above is required to be followed.

      (c) What is the procedure for Transfer of Shares held in the Demat form?

      For transfer of shares held in Demat form, please follow the procedure as required by your Depository Participant.

  • 5. Transmission of shares
    • PAN Card mandatory for Transmission of Shares in physical form

      The Securities and Exchange Board of India, vide its Circular no. SEBI/MRD/DoP/SE/RTA/Cir-03/2010 dated 7th January, 2010, has clarified that it shall be mandatory to furnish copy of PAN Card in the following cases:

      i. Deletion of name of the deceased shareholder(s), where the shares are held in the name of two or more shareholders.
      ii. Transmission of shares to the legal heir(s), where deceased shareholder was the sole holder of shares.
      iii. Transposition of shares - when there is a change in the order of names in which physical shares are held jointly in the names of two or more shareholders.

      Accordingly, for effecting deletion of name, transmission of shares and transposition of shares held in physical form, self-attested copies of PAN Cards will be required to be submitted to MCS Ltd. (RTA)/Company.

      The aforesaid Circular of SEBI is attached for ready reference:-

      Download - SEBI Notification

      (a) What is meant by Transmission of shares?

      "Transmission" means passing of property in Shares, other than by way of transfer, by operation of law consequent to the death or insolvency of the registered member of the Company.

      On transmission of Shares, the person to whom the Shares are transmitted becomes the registered shareholder of the company and is entitled to all rights and subject to all liabilities attached to the Shares.

      In case the deceased held Shares in more than one company, the legal heir(s)/Nominee has to correspond with each of the companies by submitting relevant documents, along with the share certificates to effect transmission of Shares.

      In case of dematerialized holdings, the formalities for transmission of all securities can be completed by submitting the documents as required by the Depository Participant.

      (b) If a shareholder holding shares in physical form died, how can his/her shares be transmitted?

      In case the shares are held in joint names, the surviving holder(s) shall be required to submit following documents to MCS Ltd. (RTA)/Company:

      » A letter requesting deletion of name of the deceased shareholder.
      » Copy of Death Certificate of the deceased shareholder duly attested by Gazette Officer or Notary.
      » Self-attested copy of PAN card of the surviving shareholder(s).
      » Self-attested copy of any one of Passport or Driving License or Voters' Identity Card of the surviving shareholder(s).
      » A cancelled cheque leaf or a copy of a cheque leaf pertaining to the bank account, details of which will be recorded as the bank particulars of the surviving shareholder(s).
      » Original Share Certificates of the deceased shareholder.

      In case the deceased shareholder has registered for Nomination, the nominee shall be required to submit following documents to MCS Ltd. (RTA)/Company:

      Upon death of the shareholder or of both the joint shareholders, as the case may be, the nominee would be required to furnish the following documents in addition to any other for the purposes of identification:

      » Certified true copy of death certificate of shareholder(s).
      » Proof of date of birth of the nominee.
      » An affidavit/declaration by the nominee declaring his rights.
      » Original share certificate(s) of the deceased shareholder(s).

      There may be further identification requirements at the discretion of the Company.

      In case the shares are held in sole name and the shareholder has expired, the legal heir(s) shall be required to submit following documents to MCS Ltd. (RTA)/Company:

      » A letter requesting transmission of shares in favour of Legal Heir(s).
      » If there exist more than one legal heir and shares are not to be transmitted in favour of all the existing legal heirs, "No Objection Certificate" (Notarized) shall be submitted by the legal heir(s) in whose favour shares are not to be transmitted.
      » Copy of Death Certificate of the deceased shareholder duly attested by Gazette Officer or Notary.
      » Court certified copy of Probate of Will or Letter of Administration or Succession Certificate. (In case of absence of the said documents, kindly contact MCS Ltd. (RTA) for further course of action in the matter).
      » Current specimen signature(s) of the legal heir(s) duly attested by bank on bank letter head.
      » Self-attested copy of PAN Card of the legal heir(s) to whom shares are to be transmitted.
      » Self-attested copy of any one of Passport or Driving License or Voters' Identity Card of the legal heir(s) to whom shares are to be transmitted.
      » A cancelled cheque leaf or a copy of a cheque leaf pertaining to the bank account, details of which will be recorded as the bank particulars of the legal heir(s).
      » Original Share Certificates of the deceased shareholder.

      In case of any query relating to transmission of shares, the concerned persons are requested to contact MCS Ltd. (RTA)

      (c) If a shareholder held shares in Demat form and died, how can legal heir(s) get his/her shares transmitted in their name(s).

      For transmission of shares held in Demat form, please follow the procedure as required by your Depository Participant.

      (d) The name of joint holder was included only for convenience by the first holder. I am the only legal heir of the deceased shareholder. Could you transfer the shares in my name as per the will/probate?

      As per law, the joint holder is deemed to be having indivisible ownership of the joint property and the Company cannot ascertain as to how or why the name was included. As per the Articles of Association of the Company, the surviving joint holders are the only persons recognized as having title to the shares.

  • 6. Transposition of Names
    • (a) What is meant by Transposition of Names?

      Transposition is the process of interchanging the order of names in respect of shares held under a folio in joint names.

      (b) In case one holds shares in joint names and would like to change the order of names, then what he should do?

      In this case, the share certificates along with a request letter duly signed by all the joint-holders as per the specimen signatures recorded with the Company needs to be forwarded to MCS Ltd. - RTA of the Company. Further there is no need to execute a share transfer deed.

  • 7. Loss of Share Certificates
    • (a) What is the procedure to obtain duplicate share certificate(s)?

      In case of loss of share certificate following documents are required to be submitted to MCS Ltd. (RTA) /Company:

      » Lodge a First Information Report (FIR) with your local police station;
      » Submit your application in writing to MCS Ltd. (RTA) /Company, duly signed by all the shareholders, quoting your folio number, details of share certificate(s) lost, along with an original/certified copy of the FIR.

      The additional formalities required to be complied with are as follows:

      » Affidavit affirming loss of the Share Certificate(s).
      » Indemnity agreeing to indemnify the Company against any future claims that may be made on the Company arising out of issuance of such duplicate Share Certificate(s) by the Company.
      » Bank attested copies of PAN Card
      » Bank attested copy of any one of Passport/ Driving License/ Voters Identity Card towards proof of identification & address.
      » Any other document as may be required by MCS Ltd. /Company to establish validity and authenticity of the claim.

      (b) What should I do in case I find the original share certificate(s) reported as lost/ misplaced?

      In terms of the indemnity executed and furnished by you, please return the original share certificate(s) to MCS Ltd. (RTA) / Company for cancellation.

      (c) What is the procedure for replacement of share certificate(s) in lieu of torn, defaced or mutilated share certificate(s)?

      Please submit your application in writing to MCS Ltd. (RTA)/ Company, duly signed by all the shareholders, requesting for replacement of share certificate(s), enclosing therein the torn, defaced or mutilated share certificate(s).

       
  • 8. Nomination
    • (a) What is Nomination facility?

      Nomination refers to the act of nominating a person in whom the shares would vest in the event of unfortunate death of the nominator (shareholder).

      (b) What are the advantages of Nomination?

      Notwithstanding anything contained in any other law or any testamentary deposition or otherwise, in respect of the shares, where a nomination has been made in accordance with the provisions of Companies Act, 2013, on the death of the shareholder, (or in case of joint holdings, on the death of all the joint holders), the Nominee shall become entitled to the rights in relation to such shares held by the deceased shareholder(s), to the exclusion of all other persons unless the nomination is revoked.

      (c) How do I make Nomination for my shareholding?

      Please submit Nomination Form SH-13 in duplicate, duly filled and signed by all the shareholders to MCS Ltd. – RTA or the Company. Only one nominee can be nominated per folio. However, if the shareholder(s) hold more than one folio; but in different order of names or hold in joint names in more than one folio in different combination of names, then they can appoint different nominees under each folio. On receipt of the request for registration of nomination, the Company will register the same and intimation will be sent to the shareholder(s) for registration of nomination.

      If you are holding shares in Demat form, please contact your Depository Participant.

      Download Nomination Form SH-13

      (d) Do I have to send my share certificate(s) along with Nomination Form?

      No.

      (e) Can a nomination made be changed? What is the effect of nomination upon transfer of shares?

      Yes. A nomination once made can be cancelled or varied by submitting Cancellation or Variation of Nomination Form SH-14. In case joint shareholders have made a nomination, and one of them expires, the surviving shareholder(s) can make a fresh nomination. Further, upon transfer of shares, the nomination stands automatically rescinded.

      Cancellation or Variation of Nomination Form SH-14

      (f) What is the procedure for transfer of shares in favor of the Nominee?

      Upon death of the shareholder or the joint holders, as the case may be, the Nominee would be required to furnish the following documents in addition to any other documents as may be required by the Company for the purposes of identification:

      » Certified true copy of death certificate of the shareholder.
      » Proof of date of birth of the Nominee, in case the Nominee is a minor.
      » Declaration by the Nominee confirming his rights.
      » The original share certificate(s).

      The Corporation, on being satisfied about the identity of the Nominee, will request the Nominee to elect to either register himself as a shareholder or to transfer the shares. The Nominee is then required to issue a notice of his election.

      If the Nominee elects to be registered as a shareholder, he shall send a notice to MCS Ltd. /Company, in writing, stating that he so elects.

      (g) What is the effect on the nomination in the event of death of one of the joint holders?

      In the event of death of one of the joint holders, the shares get transmitted in the name of the surviving holder. The death of one of the joint holders does not rescind the nomination, as the Nominee will have title to the shares only after the death of all the joint holders. However, as stated earlier, the surviving shareholder(s) can make a fresh nomination.

       

      (h) What is the effect of nomination when a shareholder dies leaving a minor nominee?

      In terms of Sub-Section (4) of Section 72 of the Companies Act, 2013, if the Nominee is a minor, it shall be lawful for the holder of the shares to nominate in the prescribed manner any person to become entitled to shares in the event of his death during the minority of the Nominee. A perusal of the prescribed Form SH-13 reveals that in case of a minor Nominee, a person is required to be named as a guardian to whom the shares shall vest in the event of death of the shareholder during minority of Nominee. On attaining majority, the Nominee is required to send a notice of his decision to either become a shareholder or to transfer the shares.

       

      (i) Can I nominate a person for a part of my shareholding?

      No. The nomination should be made for the entire shareholding under a folio.

  • 9. Unclaimed Dividend
    • (a) How does one get dividend on shares held in electronic form?

      The details of beneficiary holders (Shareholders) are obtained from the Depositories as on the date of book closure / record date fixed by the Board of Directors. Dividend in respect of shares held in electronic form is normally credited through ECS to the bank account as per the details provided in the Beneficiary Account of the shareholder maintained with the DP. In case of shareholders holding physical shares and who have registered their correct bank details with the Company for availing ECS facility, dividend is credited through ECS to their bank account. An ECS intimation letter is also dispatched to the shareholders whom dividend is paid by electronic mode.

      In order to avail ECS facility for dividend remittance, kindly follow the steps mentioned at the link “Remittance of dividend through NECS/Change in ECS Details”.

      (b) What happens to dividend, if not claimed within 7 years?

      The dividend declared at Annual General Meeting is required to be paid within 30 days from the date of declaration of the said dividend. The companies are required to deposit the balance amount lying in the dividend account to an “Unclaimed Dividend Account” within 37 days from the date of declaration. Any amount lying in the said account is termed as “Unclaimed Dividend Amount”.

      Dividends that are not encashed or claimed, within seven years from the date of their transfer to the Unclaimed Dividend Account, will, in terms of the provisions of Section 205A of the Companies Act, 1956, be transferred to the Investor Education and Protection Fund (IEPF), established by the Government of India. In terms of the provisions of Section 205C of the Companies Act, 1956, no claim shall lie against the Company or the said Fund after the said transfer.

      The dividend declared for the financial year ended on 31st March, 2007, which remained unclaimed has been transferred to “Investor Education & Protection Fund” in terms of the provisions of Section 205C of the Companies Act, 1956.

      The unclaimed dividend for the following years will be transferred by the Company to IEPF on the due dates tabulated here in below. Once unclaimed dividend is transferred to IEPF, no claim shall lie against the same.

      Dividend for Financial Year ended Date of declaration of dividend Due date of deposit into IEPF
      31.03.2008 30.09.2008 06.11.2015
      31.03.2009 30.09.2009 06.11.2016
      31.03.2010 30.09.2010 06.11.2017
      31.03.2011 30.09.2011 06.11.2018
      31.03.2012 28.09.2012 04.11.2019
      31.03.2013 30.09.2013 06.11.2020
      31.03.2014 30.09.2014 06.11.2021

      Hence, the shareholders whose dividends are unclaimed are requested to send duly filled and signed “Dividend Claim Form” at the Registered Office of the Company enclosed with complete set of documents as mentioned in the said Form.

      (c) I have not received dividend on shares of Fairdeal Filaments Ltd. held by me. What should I do?

      If you have not received dividend warrant or credit of dividend amount in your bank account, please send duly filled and signed “Dividend Claim Form” at the Registered Office of the Company enclosed with complete set of documents as mentioned in the aforesaid form.

      After necessary verifications, if all the details provided are found to be in order, the Company will issue fresh demand draft/cheque in respect of unpaid dividend to the concerned shareholder.

      Download - Dividend Claim Form

      (d) How can I re-validate my dividend warrant?

      Please return the outdated/expired dividend warrant along with duly filled and signed “Dividend Claim Form” enclosed with complete set of documents as mentioned in the aforesaid Form at the Registered Office of the Company for issuance of fresh demand draft/cheque.

      If remittance of dividend through ECS gets rejected due to incorrect/incomplete bank details provided to the Company, dividend is paid through demand draft issued to such shareholders at his/her address registered with the Company.

      Dividend warrants are dispatched at the address registered with the Company in case of shareholders who have not availed ECS facility of the Company.

  • 10. E-mail Registration
    • (a) How can I participate in "Green Initiative" measures of the Company?

      According to Circular No. 17/2011 dated 21.04.2011 and 18/2011 dated 29.04.2011 issued by the Ministry, companies can now send various documents/notices including Annual Report comprising the notice calling Annual General Meeting, Audited Financial Statements, Directors' Report, Auditors' Report etc. to their shareholders in electronic mode, to the registered e-mail addresses of the shareholders.

      The shareholders who are holding shares in physical form can register their E-mail Id(s) with the Company for receipt of Notices, Annual Reports etc. through E-mail promptly and without any loss in postal transit and can take a step towards becoming a globally more responsible person.

      Kindly fill-in the details in E-mail Registration Form at the below link & attach scan copy (.Pdf file) of any one of the below documents as an identity proof -

      » PAN Card
      » Driving License
      » Voters' Identity Card

      Link - Online E-mail Registration

  • 11. Change in Name
    • (a) In which circumstances would a shareholder be required to apply for change in name with the Company?

      The shareholder(s) will be required to submit with the Company details pertaining to change in name caused due to marriage. If new name is not registered with the Company, dividend whenever declared by the company shall be remitted in the old name as registered on the Company's records. Further, all the shareholders' correspondence shall also be issued in the old name and shall be dispatched at the old address of the shareholder as registered with the Company.

      Hence, for convenience and avoidance of practical difficulties, it is recommended to complete the procedure of name change after marriage of the shareholder.

      (b) What is the procedure to apply for name change to the Company?

      In order to register your name change details, the following documents are required to be submitted at the Registered Office of the Company:

      » Name Change Application Form
      » Notarized copy of Marriage Certificate
      » Notarized Copy of Birth Certificate
      » True Copy of PAN Card (New Name)
      » True Copy of PAN Intimation Letter (New Name)
      » Signature Verification Form with Banker's Designation and Seal (As per format attached herewith)

      Download - Name Change Application Form
      Download - Signature Verification Form

  • 12. Signature Updation
    • (a) What is the procedure for updation of signature of the shareholder registered with the Company?

      In case of change in Signature, the shareholder is required to submit following documents to MCS Ltd. (RTA)/ Company:

      » Signature Updation Application Form (SUA)
      » True Copy of PAN Card
      » True Copy of PAN Intimation Letter
      » True Copy of Driving License/Passport/Voters' Identity Card
      » Signature Verification Form with Banker's Designation and Seal (As per format attached herewith)
      » Bank Account Statement (Attested by Banker) of the Account, the details of which have been provided in "Signature Verification Form". (Bank Statement should not be older than 2 months from the date of dispatch of SUA Form to the Company)

      Download - Signature Updation Application Form
      Download - Signature Verification Form

NOTE: In case of any further query, kindly contact MCS Ltd. (RTA) / Company.