NewsCorporate ActionsGoldcoin Health Foods Secures NCLT Approval for Share Capital Reduction to Offset LossesGoldcoin Health Foods Secures NCLT Approval for Share Capital Reduction to Offset Losses
Gold Coin Health Foods Limited has obtained NCLT Ahmedabad Bench approval for a capital reduction scheme. The face value of shares will be reduced from Rs. 10 to Rs. 5, writing off Rs. 1,50,04,500 in accumulated losses. The scheme received 99.59% shareholder approval. Post-reduction, the company plans to consolidate two Rs. 5 shares into one Rs. 10 share, resulting in 15,00,450 equity shares. The shareholding pattern remains unchanged, and the company's net worth stays at Rs. 1,00,58,900. The company must publish the NCLT order, file it with the Registrar of Companies, and pay Rs. 10,000 in legal costs.
*this image is generated using AI for illustrative purposes only.
Gold Coin Health Foods Limited, a company listed on the Bombay Stock Exchange (BSE), has received approval from the National Company Law Tribunal (NCLT) Ahmedabad Bench for a significant restructuring of its share capital. The move aims to improve the company's financial position by writing off accumulated losses.
Key Details of the Capital Reduction Scheme
The NCLT has approved the following changes to Gold Coin Health Foods' share capital structure:
| Aspect | Pre-Reduction | Post-Reduction |
|---|---|---|
| Face Value per Share | Rs. 10.00 | Rs. 5.00 |
| Number of Equity Shares | 30,00,900 | 30,00,900 |
| Paid-up Capital | Rs. 3,00,09,000.00 | Rs. 1,50,04,500.00 |
The reduction in share capital will be used to write off accumulated losses of Rs. 1,50,04,500.00, effectively improving the company's balance sheet without any cash outflow.
Shareholder Approval and Voting
The scheme received strong support from shareholders:
- 99.59% of votes cast were in favor of the reduction
- Promoters, holding 39.31% of shares, voted unanimously for the scheme
- Public shareholders, owning 60.69%, also showed significant support
Impact on Shareholding Pattern
The capital reduction does not alter the existing shareholding pattern:
| Category | Pre-Reduction | Post-Reduction |
|---|---|---|
| Promoter | 39.31% | 39.31% |
| Public | 60.69% | 60.69% |
Additional Consolidation Step
Following the initial reduction, the company plans to consolidate its shares:
- Two shares of Rs. 5.00 each will be consolidated into one share of Rs. 10.00
- This will result in 15,00,450 equity shares of Rs. 10.00 each
- The total paid-up capital will remain at Rs. 1,50,04,500.00
Financial Impact and Creditor Protection
The reduction in share capital is designed to have no adverse effect on creditors or the company's ability to meet its financial obligations. The net worth of the company will remain unchanged at Rs. 1,00,58,900.00 post-reduction.
Regulatory Compliance
The company has adhered to the necessary regulatory requirements:
- Compliance with Section 66 of the Companies Act, 2013
- Adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations
- Filing of the scheme with the Bombay Stock Exchange (BSE)
Next Steps
Gold Coin Health Foods is required to:
- Publish the NCLT order in national and local newspapers within 14 days
- File a certified copy of the order with the Registrar of Companies within 30 days
- Pay Rs. 10,000.00 as costs to the Regional Director for legal expenses
This capital reduction strategy demonstrates Gold Coin Health Foods' proactive approach to addressing its financial structure and may position the company for improved financial reporting in the future.
Historical Stock Returns for Gold Coin Health Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.09% | +2.26% | +0.80% | +10.89% | +2.82% | +186.08% |
17
