Emkay Taps and Cutting Tools Limited — Important, 24-12-2024: Updates

The Composite Scheme of Arrangement between Emkay Taps and Cutting Tools Limited and Emkay Tools Limited has been sanctioned by the National Company Law Tribunal. As part of the Scheme, Emkay Tools Limited has allotted equity shares to the shareholders of Emkay Taps and Cutting Tools Limited at a ratio of 1:1 for every equity share held as of December 4, 2024.

For taxation purposes, shareholders are advised to allocate their pre-demerger cost of acquisition as follows: 87.28% towards shares of Emkay Taps and Cutting Tools Limited and 12.72% towards shares of Emkay Tools Limited. This ratio is based on the net book value of the demerged assets compared to the net worth of Emkay Taps and Cutting Tools Limited, according to a certificate from a Chartered Accountant.

Shareholders should consider obtaining independent tax advice, as this guidance does not constitute legal or financial advice, and Emkay Taps and Cutting Tools Limited assumes no liability related to this communication.