Consolidated Finvest - Outcome Of Board Meeting

Consolidated Finvest & Holdings Ltd has informed the Board of Directors of the Company
at its meeting held on September 15, 2007, had approved the Scheme of amalgamation of Rishi Trading Company Ltd, a non banking finance Company (Transferor Company) with the Company, as per the draft placed before them, subject to the requisite approvals from Stock Exchange, High Court and shareholders of the Company.
The draft scheme of amalgamation (Scheme) are as follows:
The management of both the Companies is of the view that the operations of both the Companies can be conveniently merged for the following reasons and benefits enumerated in the scheme:
1. The nature of business of both the Companies is of similar nature.
2. Independent operation of the Companies leads to significant overlaps in the business plans and overheads.
3. Amalgamation will channelise synergies and shall lead to optimum utilization of the available resources and will result in economies of scale.
4. The proposed amalgamation will help in improving working capital position of the Company and will help the Company to expand its operations without any additional cost.
Accordingly, the Board of Directors of both the Companies have approved the draft of the Scheme.
As per the proposed Scheme the equity shareholders of the Transferor Company will be allotted 170 Equity Shares of Rs 10/- each, as fully paid up for every 100 Equity shares of Rs 10/- each held by them in the Company.