APRIL 20248TOP STORIESNCLT GREEN LIGHTS MERGER OF HINDUJA GROUP'S REALTY & HEALTHCARE UNITSThe National Company Law Tribunal (NCLT) has given its approval to the scheme of merger by absorption between Hinduja Group's unlisted entities Hinduja Realty Ventures and Hinduja Healthcare. This decision, delivered on March 28, marks a significant milestone in Hinduja Group's corporate restructuring efforts.The merger plan entails the amalgamation of Hinduja Healthcare, which operates in the healthcare services sector, into Hinduja Realty Ventures, primarily involved in real estate development. The objective behind this merger is to consolidate the operations of both entities into a single entity, thereby streamlining processes and improving overall efficiency.As per the merger scheme, shareholders of Hinduja Healthcare will receive equity shares of Hinduja Realty Ventures. The exchange ratio stipulates that for every 10,000 equity shares of Hinduja Healthcare, shareholders will be entitled to receive 29.3576 equity shares of Hinduja Realty Ventures. However, the NCLT has directed that no consideration will be paid for shares already held by Hinduja Realty Ventures.The NCLT's order addresses various aspects of the merger, including the treatment of inter-company transactions and creditor arrangements. It specifies that all outstanding transactions between the two companies will be treated as internal transactions from the appointed date, resulting in the automatic settlement of any outstanding obligations.With regards to creditors, the order outlines the details of secured and unsecured creditors as of March 15. The companies are instructed to hold meetings with creditors or obtain consent affidavits as required by law.Furthermore, notices and copies of the merger scheme are to be served to relevant authorities, such as income tax authorities, central government offices, and sectoral regulators. These entities will have a 30-day period to submit any representations they may have regarding the merger. The Ministry of Corporate Affairs (MCA) announced a significant milestone, revealing that the fiscal year 2023-2024 witnessed the highest number of incorporations on record, surpassing all previous financial years. This announcement was made through a post shared on social media platform X.According to the MCA's post, a total of 185,314 companies were incorporated during the fiscal year 2023-2024, marking a notable increase from the 159,339 companies incorporated in the previous financial year 2022-2023. This surge in company incorporations reflects the resilience and growth potential of India's corporate sector, with businesses across various industries contributing to the nation's economic development.Additionally, the incorporation of Limited Liability Partnerships (LLPs) also experienced a remarkable uptick during the same period. The data reveals that 58,990 LLPs were incorporated in the fiscal year 2023-2024, compared to 36,249 LLPs incorporated in the preceding year 2022-2023. This surge in LLP incorporations underscores the increasing popularity of this business structure among entrepreneurs seeking flexibility and limited liability.The data released by the MCA highlights a substantial increase in the number of entities joining the corporate ecosystem, indicating a buoyant business environment and robust investor confidence. This surge in incorporations is indicative of the government's continuous efforts to streamline regulatory processes, ease compliance burdens, and promote ease of doing business in the country. MCA SEES RECORD HIGH LLP INCORPORATIONS IN FY23-24
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