Palash Securities Ltd Company Summary

Palash Securities Ltd Summary

Palash Securities Limited was incorporated in March 23, 2015. The Company acts as a Core Investment Company (CIC) as per RBI guidelines and operates in the business to deal, invests in securities, etc. mainly of group companies and in immovable properties. The Company has five subsidiaries. The businesses of the Company are carried out by its wholly-owned subsidiaries. The first three being wholly owned subsidiaries of the Company viz: OSM Investment & Trading Company Limited; Champaran Marketing Company Limited; Hargaon Investment &Trading Company Limited and are registered NBFC with RBI and primarily engaged in investment activities and whereas Hargaon Properties Ltd is a step down subsidiary engaged in investment of properties. And the other wholly owned subsidiary Allahabad Canning Ltd is engaged in the food processing business thereby producing all types of canned fruits & vegetables, jams jellies, Marmalades, juices, tomato ketchup/puree/sauce, vegetable sauces, squashes, breakfast cereals like cornflakes, chocos, white oats etc. The Company aims to create sustainable vision to grow the business and make long-term strategic investments in various new ventures promoted by the Company and its subsidiaries. Apart from its operations in investment in securities including through its wholly owned subsidiaries, the Company continues to be engaged in business of food processing through its subsidiary company i.e Allahabad Canning Limited.With the objective of business realignment of OSML and Upper Ganges Sugar & Industries Limited (UGSIL), a Composite Scheme of Arrangement had been filed with the Honble High Court of Allahabad to transfer the Food Processing and Investment business undertaking of OSML to the Company and thereafter to transfer the Food Processing business undertaking of the Company to Allahabad Canning Limited (ACL) from the appointed date i.e. 1st April, 2015, which has been approved by the National Company Law Tribunal. As per the Composite Scheme of Arrangement approved by the National Company Law Tribunal, all the assets and liabilities of the food processing and investment business undertakings of OSML had been transferred to and vested in the Company at their respective book values and thereafter the food processing business undertaking of the Company present in the state of Uttar Pradesh had been transferred to and vested in ACL at their respective book values as on 1st April, 2015 on a going concern basis from appointed date i.e. 1st April, 2015. As per the scheme, appointed date as approved by the National Company Law Tribunal was 1st April, 2015 and effective date is 23rd March, 2017 being the date on which the certified copy of the order sanctioning the said scheme was filed with the Registrar of Companies, Kanpur, Uttar Pradesh and Uttarakhand in accordance with the Companies Act, 1956 and applicable provisions of Companies Act, 2013. Accordingly, all related adjustments thereof had been given effect to in the accounts during the previous financial years.Pursuant to the scheme above, the Company had issued 1,00,03,102 fully paid up equity shares of Rs 10/- each to the shareholders of OSML as per Record date 23 March 2017, aggregating to Rs 1,000.31 lakhs, in the ratio of 27 equity shares of the face value of Rs 10 each of the Company for every 70 equity shares of the face value of Rs 10 each held in OSML. Further, the Company had issued 13,00,000 fully paid up 8.5% Non-Convertible Cumulative Redeemable Preference Shares of Rs 10/- each to the preference shareholders of OSML, aggregating to Rs 130 lakhs on the same terms and conditions. Further the Company had received 1,09,34,588 fully paid up equity shares of Rs 10/- each from ACL, aggregating to Rs 1,093.46 lakhs, as consideration for the transfer of food processing business undertaking.During the FY 2020-21, the company had received offer for subscribing upto 12,08,305 equity shares on rights basis of M/s Allahabad Canning Limited, a wholly owned subsidiary of the company. The fresh issue comprised of equity shares of face value of Rs. 10/- at a premium of Rs. 65.80 each amounting to Rs 9.16 crores. The entire offered shares have been renounced in favour of its other wholly owned subsidiaries namely, Hargaon Investment & Trading Co Limited, OSM Investment & Trading Co Limited and Champaran Marketing Co Limited.