EFC (I) Limited has announced a significant development in its corporate restructuring efforts. The National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned the Scheme of Arrangement between EFC (I) Limited (Transferee Company) and Whitehills Interior Limited (Transferor Company) on November 12, 2025.

Key Details of the Approval

• The approval was granted under Company Scheme Petition No. CP(CAA)/217/MB/2025 in CA(CAA)/184/MB/2025.
• The sanction follows the provisions of Sections 230 to 232 of the Companies Act, 2013.
• EFC (I) Limited had previously made disclosures regarding this scheme in July 2023, September 2025, and October 2025.

Implications and Next Steps

This NCLT approval marks a crucial milestone in the corporate restructuring process for EFC (I) Limited and Whitehills Interior Limited. The sanctioning of the scheme by the NCLT is a significant step towards the completion of the arrangement between the two companies.

Awaiting Further Details

EFC (I) Limited has stated that a copy of the NCLT order is awaited. Once received, this document may provide more specific details about the terms and conditions of the arrangement, as well as any directives from the tribunal regarding the implementation of the scheme.

Market Impact

Such corporate actions may have implications for shareholders and the overall structure of the companies involved. Investors and stakeholders of EFC (I) Limited and Whitehills Interior Limited may want to closely monitor further announcements for a comprehensive understanding of how this arrangement may affect their interests.

Conclusion

The NCLT's approval of the Scheme of Arrangement is a noteworthy development for EFC (I) Limited and Whitehills Interior Limited. As more details become available with the receipt of the NCLT order, stakeholders will gain a clearer picture of the arrangement's specifics and its potential impact on the companies' operations.

EFC Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of Rs 242.44 crore raised through a preferential issue of equity shares. CARE Ratings Limited, serving as the monitoring agency, reported no deviation from the stated objectives.

Fund Utilization Breakdown

The company has utilized Rs 144.77 crore across three main objectives:

Unutilized Funds Deployment

The remaining Rs 97.67 crore of unutilized funds have been deployed as follows:

• Rs 80.00 crore in fixed deposits with HDFC Bank, earning a 5.87% return
• Rs 17.67 crore maintained in current accounts of various subsidiaries

Key Observations

Working Capital Utilization

In Q2FY26, EFC Limited (a subsidiary) made a payment of Rs 2.20 crore to Brantford Limited (a related party) for leasing machinery and equipment.

Fund Deployment in Subsidiaries

The monitoring agency noted that the company has parked part of the unutilized proceeds in its subsidiaries' and step-down subsidiaries' current accounts. This practice is not explicitly allowed under the offer document, although the Board had passed resolutions in May 2024, and members approved modifications in an extraordinary general meeting in July 2024 to allow fund utilization in subsidiaries for working capital requirements.

No Timeline Delays

The report indicates no delays in the implementation of the stated objectives, as no specific timelines were mentioned in the offer document.

Corporate Actions

The company also announced that the Hon'ble National Company Law Tribunal, Mumbai Bench, has sanctioned the Scheme of Arrangement between EFC Limited (Transferee Company) and Whitehills Interior Limited (Transferor Company), and their respective shareholders and creditors.

While the fund utilization appears to be progressing as planned, investors should note the company's practice of parking funds in subsidiaries' accounts and monitor future developments closely.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial professionals before making investment decisions.