9911796707
TMI Blog2007 (12) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the financial year ending on 31-3-2007. It is a profit making company with substantial reserves. The company's growth efforts included acquisition of various intangible assets, such as trademarks, copyright, designs, technical know-how, licenses, franchises, etc., aggregating to Rs. 176.83 crores. The management of the petitioner-company thought it appropriate to restructure the balance-sheet of the company so as to streamline its financial structure through elimination of intangible assets. The company has, therefore, proposed to adjust the debit balance of its intangible accounts against the credit balance of its share premium account and general reserve account under the provisions of the Companies Act. It is submitted that the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter called 'intangible assets'), after making due adjustment for deferred tax, which deferred tax adjustment will be reversed in the subsequent years by corresponding debit to the general reserve account. Resolved further that the board of directors of the company (hereinafter called 'the Board' which term shall be deemed to include any committee of Board constituted to exercise its powers including the power conferred by this resolution or any person which the Board may nominate/constitute to exercise its power, including the powers by this resolution) be and is hereby authorized : "1.to give effect to such modifications, changes, variations, alterations, deletions, additions as may be suggested by the Hon'ble High Court of Gujarat an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are produced on record of this petition along with additional affidavit dated 25-12-2007, filed by Shri Rajkumar Baheti, the director of the petitioner-company. 5. It is further pointed out in the petition that the proposed reduction does not involve diminution of any liability or repayment of paid up capital. In fact, no reduction is envisaged in the issued, subscribed or paid up share capital of the company. Since the share premium account forms the part of the capital in terms of section 78 of the Companies Act, 1956, the utilisation of the amount lying in this account also needs to be treated as reduction of capital. In view of this, while admitting the petition this court granted dispensation of the procedure as required under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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