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‘Crompton Greaves Limited eps > (las eho 1 oe Nn Wa Mana 8. Cape ey Rane ase ome, Ou Ret cosecrienzor6 Dated: March 22, 2016 PANY'S SH ‘The Hon'ble High Cour of Judicature at Bombay has vide its Order dated Nevember 20, 2015 Sanctioned the Scheme of Arrangement between Crompton Greaves Limited (CGL/Demerged Company) and Crompton Greaves Consumer Electicale Limted (CGCEL'rResuting Company), and their respective shareholders and creditors under Sections 391 to 384 read with ‘Section 78 (Corresponcing Section 52 of the Companies Act. 2013) and Sections 100-103 of the Companies Act, 1956 (he Scheme’) ‘The Scheme, interale provided forthe transfer! vesting by way of demerger ofthe ‘Consumer Products Business’ of CGL (Demerged Undertaking) on a going concem bass to CGCEL with effect from October 1, 2015 (‘Appointed Date’) and issue of equity share ty CGCEL to the shareholders of CGL in terms ofthe eaid Scheme, (©GL has fixed March 16, 2016 as the Recoxd Date’ to determine eigbilty ofits shareholders, who would be entitled to receive shares of CGCEL, pursuant to the Scheme. In terme of the Scheme, CGCEL wil issue and alll, to each member of CGL, whose name appears in the Register of Members of CGL and! or in the records ofthe depostaries as member of CGL on ‘the Record Date, 1 (one) fully paid up equity share ofthe face valve of Rs. 2: each of CCEL. for every 1 (one) share of Rs. 2I- each fully paid held by such member in CGL. CGCEL ater alloiment ofthe shares shall apply for listing of the shares in BSE Limited art National Stock Exchange Limited ‘This Communication is being issued forthe general guidance ofthe sharehalders of GGL. for computing the proportionate cost of the acquisition of the equity shares of CGCEL vis-aws the cost of acquisition of the orginal equiy shares of CGL forthe purpose of computing the capital ‘ainoss as per the provisions of the Income Tax Act, 1961 (the ‘Act arising upon sale of the equity shares Sextion 49(2C) of the Act provides that the cost of acquisition of the shares of the resulting company ie. CGCEL, is to be computed by applying the proportion ofthe netbook value of the ‘sets of the Demerged Undertaking (Consumer Products Business) to the net worth of meso AVANTHA emerged Company (CGL) immediately before the demerger Accordingly the cost of ‘2cquistion ofthe equty shares of tne Uernerged Company {CEL} shall be the orginal cost of ‘acquisition reduced by the cost of acqusiton ascertained for the shares of CGCEL under Section 48(2D) ofthe Act ‘Shareholders are advised to apportion their pre-demerger /eriginal cost of acquisition of CQL ‘shares in the fotowng manner: [ a of the original Cost of Name ot Company | nares or cou [cron Gieaves Una jaro = 0.00% Bee | Crompton Greaves Consumer Eecreals Limited | | rar <_< In terms of Secton 47(vid) of the Act, the issue of the shares by the Resulting Company (CGCEL) to the shareholder of the Demerged Company (CGL) pursuant tothe Scheme is not a transfer and hence not taxable inthe hands ofthe shareholder. Further, in respect ofthe equty shares tobe issued by CGCEL, the date of acquisition of such equly shares, forthe purpose of ‘computation of casita gain /lss in the hands of shareholder, as and when the shares are sold il be the date of acquisition of the original shares of CGI for each shareholder, as per Clause (9) nexplanation to section 2 (42A) ofthe Income Tax Act, 1961 Presse note tat his Communication is merely forthe gonorl guidance of the sharsholer, and should ‘ol be considered 2s substute for any independ spinon thal the shraholers may obtain The Concemed requlsvy,satulory or jus! aunonty ineudng any assessing oficorappropnataappalas ‘utnety, ould ake a diferent vw. The Company fakes no express or mpeg Lob rlaion fie uid. Further note that thre is any change, induding change having 2 reospectve eect i the statutory fas and regustons, he comments exwressed i his communication woud necassany have fo be o feralusted inthe Mpht of changes the Company does no! ake tho responsibly Of updating hs ommunaton at ay tine notre. ‘Thanking You. Yours faithfully For Crompton Greaves Limited Lanijled— Manoj Koul ‘Company Secretary Page 2 of 2