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The board of Gupta Carpets International at its meeting held on 01 October 2012 has considered and approved the scheme of arrangement for amalgamation of KVR Rail Infra Projects with the company, along with the share exchange ratio as recommended by Rahul Bansal & Company, chartered accountants.
The scheme of arrangement, in its first phase, also includes re-organization of equity share capital of the company, by writing-off certain portion of accumulated past losses against 75% of its paid-up equity capital to portray the true financial position of the company into the books.
KVR Rail Infra Projects offers services for project management of railway sidings including overhead electrification, signaling and design of bridges on turnkey rail contracts. It is also engaged in the business of infrastructure development.
The amalgamation would strengthen the balance sheet of the company and shall create a larger and stronger entity, which will have better resources for business growth and expansion. The scheme of arrangement shall provide a running and profitable business to the company which has grown potential and shall also provide the shareholders of KVR Rail Infra Projects, liquidity through listing and hence there are significant synergy benefits upon consolidation of the two entities.
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