CREATIVE NEWTECH LIMITED — Capital/Financing Update 2024

Mar 11, 2024

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Creative Newtech Limited

CIN - L52392MH2004PLC148754

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

Date: March 11, 2024

To, The Officer-In-Charge (Listing) Listing Department National Stock Exchange of India Ltd., Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051

Symbol: CREATIVE

Subject: Intimation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) regarding slump sale of a Business Undertaking by Creative Newtech Limited (Company)

Dear Sir/Madam,

In reference to the above captioned subject, the Board of Directors of the Company, in their meeting held on today i.e. March 11, 2024, has considered and approved the sale of its Business division- ckartonline – an online B2B eCommerce platform for all supply chain partners (‘Business undertaking’) to World Goods Marketplace Private Limited for a cash consideration of INR 10,00,00,000/- (Rupees Ten Crores only), on slump sale basis as per the terms and conditions mentioned in the Business Transfer Agreement (“BTA”), which is to be executed between the Company and World Goods Marketplace Private Limited.

The detailed disclosure as required under Regulation 30 of the Listing Regulations, read with Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated 13th July, 2023 is enclosed herewith as Annexure.

The meeting of the Board of Directors of the Company commenced 10:00 AM IST and concluded at 12:30 PM IST.

Request you to take the same on your records.

Thanking you.

By the order of the Board For Creative Newtech Limited

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TEJAS Digitally signed by TEJAS NIRANJANBHAI DOSHI DN: c=IN, o=PERSONAL, title=7704, pseudonym=2fce03b0664c41e4b41d511b3eb29f26, NIRANJANBHAI 2.5.4.20=f171fb20112289ebe83cd73134ca2426c53ca3c7d9e4d7ea4f19b468a40f0286, postalCode=401101, st=Maharashtra, serialNumber=ce415067c4d1da3010f3c89b39aa43a941e0d91cf2 a7a4c4981e1ff391dcb933, cn=TEJAS NIRANJANBHAI DOSHI DOSHI Date: 2024.03.11 12:37:12 +05'30'

Tejas Doshi Chief Compliance Officer and Company Secretary ACS – 30828

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Creative Newtech Limited

CIN - L52392MH2004PLC148754

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

ANNEXURE

Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

S. No.	Particulars		Remarks
a.	The amount and percentage of the turnover or revenue or income and net worth contributed by such unit or division or undertaking or subsidiary or associate company of the listed entity during the last financial year;				% to the total turnover of the Company as on March 31, 2023 NIL % to the total Net Worth of the Company as on March 31, 2023 NIL
			Name of the undertaking	Turnover as on 31st March, 2023	% to the total turnover of the Company as on March 31, 2023
			‘ckartonline’ business division of the Company	NIL	NIL
			Name of the undertaking	Net Worth as on 31st March, 2023	% to the total Net Worth of the Company as on March 31, 2023
			‘ckartonline’ business division of the Company	(91.96) Lakhs	NIL
b.	Date on which the agreement for sale has been entered into.		The Business Transfer agreement (“BTA”) for the sale of ‘ckartonline’ Business division of the Company is yet to be executed.
c.	Expected date for completion of sale/disposal.		Appx. One month from the date of entering into BTA or such other period as may be mutually agreed between the parties.
d.	Rationale for the sale of business undertaking		The company is engaged in the PAN India distribution, and has partnered with renowned Brands specializing in IT, Lifestyle, Imaging, and Security products. The “Ckartonline” Business Division is the online digital B2B Commerce platform. The said online platform was developed in-house by the Company to facilitate distributors and suppliers in selling their products electronically. The Buyer, “World Goods Marketplace Private Limited” showed interest in buying the same for cash at a good value to the Company ckartonline platform The proceeds from this transaction will enable the company to pursue expansion initiatives and invest in its core operations, fostering further growth and development.

CIN - L52392MH2004PLC148754

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Creative Newtech Limited

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

e.	Consideration received from such sale/disposal.	The entire consideration of Rs. 10 crores is to be received by the Company in cash, against the sale of Business Undertaking.
f.	Brief details of buyers and whether any of the buyers belong to the promoter/ promoter group/group companies. If yes, details thereof	World Goods Marketplace Private Limited, the buyer, is Ahmadabad, Gujarat based Private Limited Company, incorporated in April 2021. The buyer does not belong to the promoter/promoter group or group companies.
g.	Whether the transaction would fall within related party transactions? If yes, whether the same is done at “arm’s length”;	No, the transaction for slump sale does not fall within related party transaction.
h.	Whether the sale, lease or disposal of the undertaking is outside Scheme of Arrangement? If yes, details of the same including compliance with regulation 37A of LODR Regulations.	The slump sale of the business undertaking is pursuant to a Business Transfer Agreement and is outside scheme of arrangement. The Business Undertaking does not fall within the definition of “Undertaking” as per the provisions of the Companies Act, 2013, and therefore regulation 37A of LODR Regulations is not applicable on the company.
i.	Change in Shareholding pattern (if any)	Since the transaction is to be executed through slump sale solely for cash consideration, there will be no consequent change in the shareholding pattern of the Company.

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