INSUBCONTINENT EXCLUSIVE:
where its wholly-owned subsidiary Suzlon Global Services Limited will be merged with the parent entity
Suzlon in a filing to the exchanges today informed about receiving the letters from the NSE and BSE on Thursday, July 3
Under the 'Scheme of Arrangement', which involves the company, its shareholders, and creditors, Suzlon Energy will undertake the reduction
and reorganisation of reserves.Suzlon plans to adjust its accumulated losses by reducing and reorganising reserves, specifically
transferring the credit balance in the General Reserve to Retained Earnings.This means Suzlon will use existing reserves (built up during
profitable years) to wipe out past losses reflected in the Retained Earnings account.The company said that it will result in a cleaner
with legal requirements:1) The company must comply with detailed disclosures, including how reserves will be adjusted, the historical
build-up of losses and reserves, rationale for the scheme, impact on shareholders, cost-benefit analysis, and updated balance sheets pre-
and post-scheme.2) The company has to ensure that additional information, if any, submitted by the company after filing the Scheme with the
stock exchange is displayed on the websites of Suzlon and the exchanges.3) The company has to ensure entities involved in the proposed
scheme will not make any changes in the draft scheme subsequent to filing the draft scheme with SEBI by Stock Exchange(s), except those
mandated by the regulators/ authorities/tribunal.4) The company should ensure compliance with the Sebi circulars issued from time to time.5)
The company should ensure that the financials in the scheme considered are not more than 6 months old.Also read: Vedanta's investor dilemma:
Dividend king, pauper returns; time to buy or say bye?Suzlon shares today ended at Rs 65.65 on the NSE, up by Rs 0.38 or 0.58% over the
Thursday closing price.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own
These do not represent the views of Economic Times)
