Shree Renuka Sugars Ltd. — M&A Activity 2019

Nov 20, 2019

dated1	5November2019:
s.No.	Clarification Sought by NSE	Company Response
1.	Nameoftheentitiesformingpartoftheamalgamation/merger,detailsinbriefsuchas,size,turnoveretc.	NameofTransferor Company:GokakSugarsLimited having its registered office at 5.No.238and263,KolviVillage,TalukaGokak,DistrictBelgaum,PIN-591344,Karnataka.NameofTransferee Company:ShreeRenukaSugarsLimited, having its registered office at2"dand3'dFloor,KanakashreeArcade,CTSNo.10634,JNMCRoad,NehruNagar,BelagaviPIN- 590010,Karnataka.Details of the respective turnoversandnet worth of theTransferorCompanyandtheTransfereeCompanyinaccordance with their respective latest audited financialstatements for financial year ended31March2019areasbelow:EntityTurnoverNet Worth(INRcrore)(INRcrores)Transferor Company193.42(50.05)Transferee Company4296.86592.02*Networth Calculatedasper definition under Companies Act,2013

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	SHREERENUKASUGARS
	2.	Whether the transactionwould fall within relatedparty transactions?Ifyes,whetherthe sameisdoneat "arm's length".	The Transferor Companyisa subsidiaryofthe TransfereCompany. However, the proposed merger does not fall withithe purviewofprovisotoSection 188ofthe Companies Ac2013asclarified pursuanttothe general circular numbe30/2014 dated July17,2014 issued bytheMinistryoCorporate Affairs.			ent,rf
	3.~----4-4.	AreaofbusinessoftheTheTransferor Companyisprimarily engaged in the businessofentities.(a)manufacture, import, export and dealing in all typesandgradesofsugar and its related productssuchasmolassesandbagasse,manures,breweriesetc.; and(b)generation,distribution, supply anduseofelectricity, all kindsofpowerand energy outofsteam generatedinthe processofmanufacture of sugarandits related products.The Transferee Companyisprimarily engagedinthe businessof(a)purchase, manufacture, produce, boil, refine, prepare,brew, import, export, buy, sellandgenerallytodeal in allvarietiesofsugar, sugar candy, jaggery, khandsari sugar, sugarbeet, sugar cane, molasses, syrups, melada, alcohol, spiritsandallrelatedproductsandby-products,thereofsuchasconfectionery, glucose,bagasses,bagasseboards, paper, paperpulp,butyl alcohol, acetone, carbon-di-oxide, hydrogen,potash,canewax, fertilizers, cattle feed and food productsgenerally; and(b)generationofpower by traditionaland/orusing, any latest technologyforthe captive consumptionandalsotodistribute, sellsuchsurplus generationifnecessary tooutsiders.--------------------4------------------------------------------------~Rationalefor!Theproposed merger of the Transferor Company into theamalgamation/ merger.Transferee Company would resultinconsolidationoftheirrespective businesses into a single entity. The anticipatedbenefitsofsucha mergerforthe shareholders, creditorsandotherstakeholdersofthe entities wouldbeset outinthe draftschemeofmerger**(Scheme)**tobeplaced before the Boardforits considerationandapproval at a subsequent meeting.
	5.	Incaseofcash	Theamount and formofconsideration shall be determined by
		consideration amount orotherwise share	the Boardbasedona valuation reporvaluer andasconfirmed b a fairne	t prepared by a regis oinion reared	steredban
			, y	p pp	y
		entitlement/exchangei	independentSEBIregistered mercha	nt banker,eachof which
	6.	rato.	shallbeplaced before the Boardforits consideration at asubsequent meeting.
		Brief detailsofchangeinshareholding pattern (ifany)oflisted entity.	Changesinthe shareholding pattern (if any)ofthe Companyshallbecomputedanddisclosed once the considerationisfinalizedinthe manner described above.