KDDL Ltd — Capital/Financing Update 2018

Dec 11, 2018

KDDL Limited

Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123

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Date : 10[th] December, 2018

National Stock Exchange of India Limited (NSE), BSE Limited, Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra, Dalal Street, Mumbai - 400001 Mumbai - 400 051 Trading Symbol : KDDL Scrip Code : 532054

Subject: Intimation under regulation 30 of the Securities Exchange Board of India ( Listing Obligations and Disclosure Requirement) Regulations, 2015 (“Listing Regulations”)

Dear Sir/ Madam,

The Board of Directors of KDDL Limited (the Company) at its meeting held on 10[th] December, 2018 has approved an agreement for acquisition of a Swiss Watch Hands manufacturing Company named “Estima AG”, Allerheiligenstrasse 30, 2540 Grenchen, Switzerland through its subsidiaries “Pylania SA” and special purpose vehicle “Kamla International Holdings SA.

The details, as required under Regulation 30 read with Schedule III to the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015 and SEBI Circular dated 9th September 2015, are provided hereunder:

Sr.	Details	Reply
No.
A	Name of the target entity, details in brief such as	ESTIMA AG, Switzerland (“Estima”), manufacturer of
	size, turnover etc.;	watch hands established in 1924.
		Current Turnover : CHF 1.8 – 2.0 million
B	Whether the acquisition would fall within related	No
	party transaction(s) and whether the promoter/
	promoter group/ group companies have any
	interest in the entity being acquired? If yes,
	nature of interest and details thereof and
	whether the same is done at “arms length”
C	Industry to which the entity being acquired	Watch Component Manufacturing
	belongs;
D	Objects and effects of acquisition (including but	The Target Company acquisition will help the Company
	not limited to, disclosure of reasons for	to capture additional market share of customers in
	acquisition of target entity, if its business is	European market serviced by Estima.
	outside the main line of business of the listed
	entity);
E	Brief details of any governmental or regulatory	No Special approvals are required for acquisition except
	approvals required for the acquisition;	for procedurals approvals under Companies Act, 2013
		and FEMA

F	Indicative time period for completion of theacquisition;	The cut-off date for acquisition by new management is7thJanuary, 2019.
G	Natureofconsideration-whethercashconsideration or share swap and details of thesame;	Cash – CHF 4,00,000 for 100 % Shares.
H	Cost of acquisition or the price at which theshares are acquired;	CHF 4,00,000 for 100 % Shares
I	Percentage of shareholding / control acquiredand / or number of shares acquired;	The Company is acquiring 100% holding of Estima.
J	Brief background about the entity acquired interms of products/line of business acquired, dateof incorporation, history of last 3 years turnover,country in which the acquired entity has presenceand any other significant information (in brief);	The existing operations of Estima AG, Switzerland areWatch Hands manufacturing and revenue is in therange of CHF 2 million.Estima was a competitor of the Company in thebusiness of watch hands manufacturing.Estima was established as a maker of watch hands inSwitzerland in 1924. It was a leading supplier to Swissand other European watch brands in the mid-pricedsegment and enjoyed an excellent reputation. However,over last 10 years, it was unable to keep up with marketchanges and lost market share leading to decliningturnover and mounting losses. However, it has a wellestablished name, valuable production infrastructureand will be a good platform for us to establish afoothold in Swiss watch component manufacturing.

The Board Meeting commenced at 04:00 p.m and concluded at 8:00 pm.

Please take the above information on record.

Thanking you,

Yours truly

For KDDL Limited

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Brahm Prakash Kumar Company Secretary

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