The Company had filed a petition for a Scheme of Arrangement which included an amalgamation, with its wholly owned subsidiary, DND Flyway Limited, under Sections 391- 394 of the Companies Act, 1956) with the Hon’ble High Courts of Judicature at Allahabad and Delhi. The Honourble High Courts of Allahabad and Delhi, vide their orders dated February 27, 2007 and May 21, 2007,respectively, approved the Scheme of Arrangement. The Scheme has become effective on June 21, 2007, with effect from the appointed date i.e. July 1,2006. Consequently DND Flyway Ltd. has been amalgamated with the Company.
In the Scheme approved by the shareholders, the Company has proposed adjustments of accumulated losses and provisioning of certain financing expenses out of Reserves & Surplus. DND Flyway Limited (DND) had no liabilities other than with its Holding Company. The Scheme of Amalgamation will have a positive impact on the Income Statement, since expenses which would have otherwise been amortised through the income statement, will be adjusted against Reserves and Surplus. The Scheme will have a healthy impact on the Company’s profits and dividend paying capacity, going forward.