Demerger definition clarifies transfer of undertakings, book-value treatment, proportionate share issuance, and going-concern requirement. Definition of demerger requires that all property and liabilities of the undertaking transfer to the resulting company by virtue of the demerger; transferred assets and liabilities be recorded at book values immediately before the demerger (subject to Indian Accounting Standards exceptions); the resulting company issues shares to demerged company shareholders on a proportionate basis with limited exceptions; shareholder continuity is preserved; the transfer is on a going-concern basis; and the demerger complies with any notified statutory conditions. Explanations disregard post-revaluation changes and deem certain reconstructions or splits of public and public sector entities to qualify as demergers where notified conditions are met.