Nagpur
+919511719169
CORPORATE RESTRUCTURING

DEMERGER

Phone Number

+919511719169

Email Address jainparanjape@gmail.com

Mon-Thu: 10 AM - 2 PM • Fri: 3 PM - 7AM

Address 207, 2nd Floor, Crystal Plaza, 276, Central Bazar Road, next to KRIMS Hospital, Ramdaspeth, Nagpur, Maharashtra 440010

Nagpur, India, 440010

Description

DEMERGER Demerger, in corporate terms, refers to the division or splitting of a company into several smaller entities. It's important to note that the newly formed companies may not necessarily become subsidiaries of the parent company post-split. In simpler terms, a demerger entails the corporate partitioning of a company into smaller entities. One entity remains under the parent company's ownership, while others may operate independently, be acquired by other entities, liquidated, or sold off. Types of Company Demergers Spin-off: Involves creating a subsidiary with a portion of the parent company's shares. Allows the subsidiary to make independent decisions and strategies for specific products, enhancing control over related business operations. Split-up: Results in the creation of a single holding company and subsidiaries from the parent company. Each subsidiary operates independently under different management to manage diversified business areas effectively. Split off: Involves selling a business vertical of the parent company to a separate entity. Done when a company wants to divest from specific markets, products, or areas. Equity carve-out: Involves the parent company reducing its holding in one of its subsidiaries. Provides financial gains but reduces the parent company's shareholding in the subsidiary. Divestment: Conducted by the government, reducing its holdings in Public Sector Undertakings (PSUs) by selling its stakes. A strategic move to exit certain business sectors or raise funds to reduce fiscal deficit. Divestiture: Similar to divestment but can be executed for any public or private limited company. Aimed at financial gain and may occur when an organization seeks to change its investment strategy. Companies opt for demergers due to various reasons: Restructuring to adapt to changing political and economic environments. Optimizing resource utilization and exploiting opportunities effectively. Exiting unprofitable business ventures or sectors. Generating resources for acquisitions or financial stability. Capitalizing on profitable opportunities through financial and managerial restructuring. Process of Demerger: Key Steps Preparation of Arrangement Scheme Application to Court for Meeting of Members/Creditors Obtaining Court's Order for Meeting of Members/Creditors Notice of Meeting of Members/Creditors Holding Meeting of Members/Creditors Petition to Court to Sanction Demerger Scheme Court's Order on Sanctioning Demerger Scheme Demergers have been observed in both private and public sectors, with the Reliance Group demerger being a notable example. As India's economic landscape evolves, demergers prove to be effective strategies to navigate the changing business environment.

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Other Services

Other Services Procurement of Class 3 DSC (Validity 2 Years) for Individuals and Organizations - Signing and Encryption Certifications of E-forms as required under the Companies Act, 2013 Certification of MGT 8 Filing annual returns with the Registrar of Companies (ROC) Organizing the board and general meetings Maintaining statutory registers, common seal, minutes books for the board and general meetings, and issue of share certificates Assisting in preparing notices, agendas, minutes, and resolutions of board meetings, and general meetings Filing periodical forms for matters relating to directors, capital structure, the shifting of the registered office, alterations in the memorandum, and articles of association Drafting and Vetting of Agreements including but not limited to Shareholders Agreement, Share Purchase Agreement, Restructuring Agreement, Bonus Entitlement Agreement, etc. Due Diligence Report, Brisk Reports, Search Report Fund and Investment Consultancy Organization Closure/Winding Up Quick Track Merger FSSAI license Consultant/Agent ISO certifications Food License IEC Code Registration 80G 12AA Registration for NGO/society RO Shifting one state to another state AGM extension consultant

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INSOLVENCY AND BANKRUPTCY PRACTICE

INSOLVENCY AND BANKRUPTCY PRACTICE Our team have handled various insolvency and bankruptcy matters under the Insolvency and Bankruptcy Code, 2016 and Regulations made thereunder, before the Adjudicating Authority (NCLT) and Appellate Authority (NCLAT). We have made representations to various regulators, authorities, tribunals and appellate tribunals and have reported case laws on this subject. Our services under Insolvency and Bankruptcy Practice areas are as under: Study, analysis and advisory on commencement of insolvency or bankruptcy proceedings against companies, LLPs and individuals Drafting of application and representing financial creditors against corporate debtors for commencement of Corporate Insolvency Resolution Process (CIRP) before the Adjudicating Authority Drafting and issue of demand notice on behalf of operational creditors Drafting of application and representing operational creditors against corporate debtors for commencement of Corporate Insolvency Resolution Process (CIRP) before the Adjudicating Authority Drafting of application and representing corporate debtor for commencement of Corporate Insolvency Resolution Process (CIRP) before the Adjudicating Authority Drafting of application and representing corporate debtor for commencing liquidation proceedings Representation and pleadings against application for commencement of Corporate Insolvency Process (CIRP) before Adjudicating Authority Drafting of appeals and representation before Appellate Authority against decision of Adjudication Authority Drafting of Resolution Plan Designing Evaluation Matrix for evaluation of Resolution Plans Implementation services of Resolution Plan Transaction advisory in respect of corporate or capital restructuring during CIRP Transaction advisory for commencement of liquidation process Transaction advisory for voluntary liquidation of companies Advisory and opinions on questions of law under the Insolvency and Bankruptcy Code, 2016 and Regulations made thereunder We have CS IP Murli Lahoti, a registered Insolvency Professional and member of the Institute of Company Secretaries of India (ICSI), who has handled Corporate Insolvency Resolution Process (CIRP) and Liquidation of Companies. He can render the following services. Officiating as Interim Resolution Professional (IRP) upon commencement of CIRP Resolution Professional (RP) upon commencement of CIRP Company Liquidator (CL) for liquidation of companies Representing financial creditors or operational creditors in meetings of Committee of Creditors (CoC) during CIRP of corporate debtors.

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XBRL Filing and Data Conversion

XBRL Filing and Data Conversion With the help of our expert group, we have been providing XBRL Conversion Services since 2011. These services are rendered by our professionals while keeping in mind the precise requirements of clients. To render these services, our skilled professionals use advanced techniques and approaches. Besides, our valuable clients can avail of these services from us in customized solutions and at market-leading rates. Our offered services are acknowledged for timely execution (i.e., four hours after providing all the information and records). Call for Demo: Complete Balance Sheet can be Prepared, Validated, and Pre-Scrutinized in Demo Version. Applicability of XBRL Many individuals or organizations are puzzled about the relevance of XBRL (Filing of Documents and Forms in Extensible Business Reporting Language). MCA issued a Notification on 06th November 2017, regarding the clarification on the mandatory relevance of XBRL on specific Companies. These guidelines may be known as the Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Amendment, Rules, 2017. Filing of financial statements with Registrar: The following categories of companies will file their financial statements and other reports under section 137 of the Act with the Registrar in e-form AOC-4 XBRL as per Annexure-I: Companies LISTED with stock exchanges in India and Their Indian Subsidiaries; Companies having Paid-Up Capital of Five crore rupees or above; Companies having Turnover of One Hundred crore rupees or above; All companies which are required to prepare their financial statements as per Companies (Indian Accounting Standards) Rules, 2015. Exempted Companies: Non-Banking Financial Companies; Housing Finance Companies; and Companies engaged in the Business of Banking and Insurance Sector.