To adjust the entire amount of intangible assets aggregating to Rs 176.82 crores against the Share Premium Account / General Reserves of the Company pursuant to provisions of Sections 78, 100 and other applicable provisions of the Companies Act, 1956 and subject to approval of shareholders of the Company and sanction of Hon'ble High Court of Gujarat and such other approvals as may be required.

The following are the benefits sought through the proposed restructuring:

a. Streamlining of the financial structure through elimination of intangible assets.

b. A much leaner balance sheet with consequent favorable impact on financial ratios particularly on return on capital employed and earning per share.

c. Uniform treatment in books of account and management account to all intangible assets whether self generated or acquired, through a practice of eliminating intangible assets.

The proposed restructuring will not in a manner:

a. cause any prejudice to any creditors of the Company, as it does not involve either the diminution of any liability in respect of unpaid capital or the payment to any shareholder of any paid-up capital.

b. affect in any way any creditors of the Company, as there is no reduction in the amount payable to any of the creditors, no compromise or arrangement is contemplated with the creditors and also there is no reduction in the security which the creditors may have in the assets of the Company.

c. adversely affect the ordinary operations of the Company or the ability of the Company to honour its commitments or to pay its debts in the ordinary course of business.