TaxTMI 
TaxTMI 
2010 (9) TMI 220
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....,00,00,000 equity shares of Rs.10 each and issued, subscribed and paid up capital of Rs.1,56,26,71,440 divided into 15,62,67,144 equity shares of Rs.10 each. 3. The objective of the petitioner-Company as contained in clause (3) of the Memorandum of Association, includes to carry on business relating to manufacture, formulation, processing, conversion, marketing, distribution, dealership, representation, agency, purchase, sale export and import of all kinds of pharmaceutical substances, drug, intermediates, bulk drugs, pharmaceutical formulations, diagnose kits, medical equipments, raw materials, obtain and provide technical, commercial research, to carry on the business of providing specialized after sales and customer support services f....
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....ooks of account of DSM as on 31st March, 2009 and as prescribed in other parts of the scheme on an ongoing basis from 1st April, 2009 and thereafter for the subsequent financial years. This adjustment of losses against the BRR would enable the Company to write off its accumulated losses and present a positive balance sheet of the company. (d )It is estimated that for the financial year ending March 31, 2010, the Company would incur losses of approximately Rs.32 crore and thereafter accumulated losses at March 31, 2010 are expected to be approximately Rs.140 crores. In this regard, the Company is undertaking the proposed Scheme of Arrangement to present its true inherent strength in the balance sheet and adjust the accumulated losses with....
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....Act hereunder:- "78. Application of premium received on issue of securities.- (1) Where a company issues securities at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those securities shall be transferred to an account, to be called "the securities premium account"; and the provisions of this Act relating to the reduction of the securities capital of a company shall, except as provided in this section, apply as if the securities premium account were paid-up securities capital of the company. (2) The securities premium account may, notwithstanding anything in sub-section (1), be applied by the company- (a )in paying up unissued securities of the company to be issued to member....
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.... a company limited by shares or a company limited by guarantee and having a share capital, may, if so authorized by its articles, by special resolution, reduce its share capital in any way; and in particular and without prejudice to the generality of the foregoing power, may- (a )extinguish or reduce the liability on any of its shares in respect of share capital not paid-up; (b )either with or without extinguishing or reducing liability on any of its shares, cancel any paid-up share capital which is lost, or is unrepresented by available assets; or (c )either with or without extinguishing or reducing liability on any of its shares, pay-off any paid-up share capital which is in excess of the wants of the company; and may, if and ....
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....m Account to the Business Reconstruction Amount is approved. 11. In respect of revaluation of the assets of the company, the learned counsel for the petitioner-Company referred to para 4.1 and para 4.2 of the scheme and argued that such scheme is an arrangement within the scope of section 391 of the Act. It is contended that the revaluation of assets is in terms of section 211(3A), (3B) and (3C) of the Act and as per the deviations permitted under the Accounting Standards specified by the Institute of Chartered Accountants of India, therefore, the approval is this court is sought to such aspect, which is part of scheme approved by the shareholders of the company. Learned counsel for the petitioner relies upon paras 4.1 and 4.2 of the sch....
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....t available for distribution. The amount added over the net book value should be credited directly to the owners' interests under a separate heading Revaluation Reserve and thus, the Revaluation Reserve can be included in shareholders' funds. It is pointed out that the proposed treatment is a deviation from the treatment of reserve created on revaluation of fixed assets as provided in the Accounting Standard 10 issued by the Institute of Chartered Accountants which provides that only the amount of additional depreciation as a result of revaluation can be adjusted against the Revaluation Reserve. 13. In the present case, there would be no additional depreciation as a result of revaluation as the Company intends to revalue its land. The Bu....