This presentation enumerates the practical aspects of merger, demerger and reduction of capital and the strategies involved therein. It also highlights certain key issues involved in corporate restructuring.

1. CORPORATE RESTRUCTURING Pavan Kumar Vijay

2. GOVERNING PROVISION SECTION 391-394 of Companies Act, 1956 Most liberal sections in the entire Companies Act, 1956. By way of SCHEME you can propose & achieve whatever you want

3. TYPES OF RESTRUCTURING REDUCTION OF CAPITAL MERGER DEMERGER

4. RESTRUCTURING BIFR High Court Approving Authorities

5. MERGER “ Combining of two or more commercial organizations into one in order to increase efficiency and sometimes to avoid competition ”. MERGER REVERSE MERGER “ As a commercial term, it means when a Healthy Company (in terms of size, capital or listing status)is merging in a Weak Company (in terms of size, or unlisted)”. SECTION 391-394 of Companies Act, 1956

6. DEMERGER “ Division of a Company with two or more identifiable business units into two or more separate companies ” SECTION – 2(19AA) of Income Tax Act, 1961.

7. “ Extinguishing or Reducing the paid-up capital, Securities Premium Account or liability of members with respect to their unpaid calls” -AN EFFECTIVE WAY OF INTERNAL RESTRUCTURING REDUCTION OF CAPITAL SECTION – 100 – 105 of Companies Act, 1956 SECTION 100 to 105 of Companies Act, 1956

9. STOCK EXCHANGE’S ROLE REQUIREMENTS Listing Agreement Compliances Stock Exchange Internal Norms Observations Compliance of Securities laws Compliance of Companies Act

11. MERGER THROUGH BIFR AN EFFECTIVE WAY TO REVIVE YOUR SICK COMPANY

13. REDUCTION OF CAPITAL

14. Types of Reduction of Capital Writing off Losses & Fictitious Assets Correction of Over- Capitalization Distinguishment of the Liability in respect of unpaid portion of face value. Distribution of accumulated profits by Payment to shareholders a part of share capital.

15. Reduction of Capital- A Strategic Step To Clean-up the Balance Sheet To rationalize the capital base Revival of Sick Company

18. Our Clients…… MERGER Visesh Infotecnics Ltd MERGER CHD Developers Ltd DEMERGER NIIT Ltd. MERGER Surya Vinayak Industries MERGER Anant Raj Industries MERGER Wrigley India Pvt. Ltd

19. Our Clients…… MERGER Shivalik Global Ltd MERGER SMC Global Securities Ltd MERGER Seasons Textiles Ltd MERGER OF FIRMS WITH COMPANY Mira Exim Ltd MERGER Reheja Design & Contract MERGER Amar Ujala Publication

20. Our Clients…… Reorganization of Capital Structure Potentially Sick Company Wiping out Past Losses by OTS with Banks and Reduction of Paid-up Capital Pashupati Acrylone Ltd. Reorganization of various Reserves and improving the Capital Structure of the Company Triton Corp Ltd Potentially Sick Company Wiping out Past Losses by OTS with Banks and Reduction of Paid-up Capital Ashnoor Textiles Ltd Sick Company Revival Reorganisation of Loans and Equity to wipe-out past losses Haryana Petrochemicals Ltd.

21. Thanks a lot… Pavan Kumar Vijay Corporate Professionals (India) Pvt. Ltd 7/9, Sarvpriya Vihar, New Delhi 1100016 Tel: +91 11 26966100, Fax: +91 11 26967100 Email: info@indiacp.com Visit us at: www.corporateprofessionals.com