IN RE Vs. EVERSTONE CAPITAL ADVISORS PRIVATE LIMITED

JUDGEMENT

(1.) The Counsel for the Applicants states that the Scheme of Arrangement provides for the extinguishment/reduction of liability in respect of uncalled Share Premium of Rs.990/- per Class A Equity share and Rs.2,900/- per Class B Equity share, issued by the Company. pursuant to the relevant provisions of the Act.

(2.) The Counsel for the Applicant further submits that the Applicant Company is currently engaged in the business of providing investment advisory services, financial advisory services as well as management and facilitation services.

(3.) The Board of Directors is of the view that the Company's financial statement are in sound position and in the near future the Company does not require further funds for future expansion and operation purposes. Accordingly, the Board of Directors at its meeting held on 5th October 2017, has approved extinguishment / reduction of liability in respect of uncalled Share Premium. The Scheme of Arrangement will achieve optimum capital structure by extinguishing/reducing the liability to the extent of the entire uncalled Share Premium across all classes of equity shares, i.e. on both the Class A and Class B equity shares. Further, it will reflect true financial position.