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| Exchange Disseminated Time | Celebrity Fashions Ltd has informed BSE that the shareholders in their meeting held on June 09, 2010, have unanimously approved the Composite Scheme of Arrangement between Celebrity Fashions Ltd. and Indian Terrain Fashions Ltd. and Celebrity Clothing Ltd. and its respective shareholders and creditors including modification to the same with respect to 'Appointed Date' and 'Fair Valuation Date' and consequent change in Sale Consideration for transfer of Bottoms Division to Celebrity Clothing Ltd.
The Appointed Date for Scheme is April 01, 2010 and Fair Valuation Date for fair valuing the assets of Celebrity Fashions Ltd. will be April 01, 2010. The Sale Consideration for transfer of Bottoms Division is at Rs. 12.22 crs as against Rs. 12.12 crs.
The Company has initiated the re-structuring process during September 2009 with January 01, 2010 as Appointed Date for giving effect to the Scheme. The process has taken more time than expected and the Company has adopted the audited results for the financial year ending March 31, 2010 in its Board Meeting held on June 04, 2010. The Committee of the Board of Directors proposed to change the Appointed Date to April 01, 2010 as the same will result in savings on additional expenditure and also save on time in finalizing the accounts and auditing and also other statutory formalities. The Fair Valuation Date for the fair valuing the assets of the Company is also changed to April 01, 2010.
Further the change in appointed date from January 01, 2010 to April 01, 2010 will result in change in sale consideration for the transfer of Bottoms Division to Celebrity Clothing Ltd. Sale Consideration is the value of net assets transferred to Bottoms Division as at the closing hours of March 31, 2010 and will be at Rs. 12.22 crs. Celebrity Clothing will be issuing one crore (1,00,00,000) equity shares at premium to Celebrity Fashions Ltd. to discharge the Sale Consideration. |
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