Concord Control Systems Limited (CCSL), a leading provider of electrical and electronic products for the Indian Railways, has taken a significant step towards consolidating its business operations. The company recently received approval from the National Company Law Tribunal (NCLT) for the first motion to merge its wholly owned subsidiary, Advanced Rail Controls Private Limited (ARCPL), with itself.

Key Highlights of the Merger Approval

• The NCLT Allahabad Bench granted approval on August 26, 2025, for the first motion of the merger.
• The merger aims to amalgamate ARCPL, a wholly owned subsidiary, with its parent company, CCSL.
• The appointed date for the merger is set as April 1, 2025.

Rationale Behind the Merger

The proposed amalgamation is expected to bring several benefits to both companies and their stakeholders:

1. Operational Integration: The merger will allow for better facility utilization and operational cost reduction through the transfer of intermediary products between the companies.

2. Efficient Procurement: Combined sourcing of raw materials is anticipated to result in reduced procurement costs for the consolidated entity.

3. Enhanced Marketing Value: The merger is expected to position the combined entity better to service customer needs, with access to complementary product portfolios and expanded market reach.

4. Streamlined Structure: The amalgamation will simplify the group structure and reduce multiplicity of legal and regulatory compliances.

5. Skill Development: Employees of ARCPL will have opportunities for skill enhancement by leveraging CCSL's larger pool of qualified and experienced manpower.

Financial Implications

As of March 31, 2025, the financial positions of both companies were reported as follows:

The strong financial standing of both entities suggests that the merged company will have a robust balance sheet to support future growth initiatives.

Next Steps

Following this approval, Concord Control Systems will proceed with further steps required for the final approval of the Scheme from the NCLT. The company has stated that it will serve individual notices of the proposed Scheme of Amalgamation to all secured and unsecured creditors, inviting their objections or comments within 30 days.

Puja Gupta, Company Secretary & Compliance Officer of Concord Control Systems Limited, confirmed that the information regarding the NCLT approval is available on the company's website at www.concordgroup.in .

As the merger progresses, it is expected to create a more streamlined and efficient organization, potentially leading to improved operational performance and shareholder value in the long term.

Note: This merger is subject to final NCLT approval and other statutory clearances.

Concord Control Systems Limited , a company listed on the BSE, has taken a significant step to support its wholly owned subsidiary, Advanced Rail Controls Private Limited. The company has issued a corporate guarantee of Rs 38.00 crores in favor of Axis Bank Limited, aimed at facilitating working capital and other short-term facilities for its subsidiary.

Key Details of the Corporate Guarantee

• Guarantor: Concord Control Systems Limited
• Beneficiary: Advanced Rail Controls Private Limited (Wholly Owned Subsidiary)
• Amount: Rs 38.00 crores
• Bank: Axis Bank Limited
• Purpose: To secure working capital and other short-term facilities

Financial Implications

The company has disclosed that this guarantee will be reflected as a contingent liability in its financial statements. At present, Concord Control Systems Limited states that there is no immediate impact on the company other than this disclosure requirement.

Subsidiary Information

Advanced Rail Controls Private Limited, the beneficiary of this guarantee, is a wholly owned subsidiary of Concord Control Systems Limited. It is registered with the Corporate Identification Number (CIN) U05190UP2005PTC223937.

Regulatory Compliance

This corporate action has been reported in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also adhered to the SEBI Circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023, by providing the necessary disclosures.

Promoter and Group Company Involvement

Concord Control Systems has clarified that the promoter and promoter group companies have no interest in this transaction beyond their existing shareholding in the company. This statement ensures transparency regarding any potential conflicts of interest.

Company Background

Concord Control Systems Limited is listed on the BSE with the scrip code 543619 and symbol CNCRD. The company's registered office is located in the U.P.S.I.D.C. Industrial Area, Deva Road, Chinhat, Lucknow, Uttar Pradesh.

This corporate guarantee demonstrates Concord Control Systems' commitment to supporting its subsidiary's financial needs, potentially enabling Advanced Rail Controls to pursue growth opportunities and manage its operational requirements more effectively.