Update on the Scheme of Arrangement
Nestlé India Ltd has informed BSE that the Hon'ble High Court of Judicature at Delhi has, on September 30, 2008 pronounced judgement on the Scheme of Arrangement between the Company and its Shareholders and Creditors. The Scheme has been sanctioned by the Hon'ble Court. Copy of the Court Order is awaited and upon receipt of the drawn up Order, the Company shall update further in the matter.
The Scheme of Arrangement between the Company and its Shareholders and Creditors, formulated under Sections 391 to 394 of the Companies Act, 1956 read with Sections 100 to 102 of the Companies Act, 1956 envisages reduction of an amount of Rs 432.4 Million lying in the Share Premium Account of the Company for consequent payment to the shareholders; and return of an amount of Rs 430.8 Million, which was voluntarily transferred to its General Reserve Account during the years 1981 to 1996, in excess of the prescribed 10% of the profits of the Company, for consequent distribution to the shareholders as Special Dividend, in accordance with the provisions of the Companies Act 1956 and subject to applicable taxes.