The National Company Law Tribunal (NCLT), Mumbai Bench, has reserved its orders on the Composite Scheme of Arrangement involving Allcargo Gati Limited (formerly known as Gati Limited) and its related companies. This development marks a significant step in the corporate restructuring process for these logistics companies.

Details of the Arrangement

The Composite Scheme of Arrangement is being processed under Sections 230 to 232 of the Companies Act, 2013. It involves multiple entities:

• Allcargo Logistics Limited (Demerged Company and Transferee Company 2)
• Allcargo Supply Chain Private Limited (Transferor Company 1), a wholly-owned subsidiary of Allcargo Logistics
• Gati Express & Supply Chain Private Limited (Transferor Company 2)
• Allcargo Gati Limited (Transferee Company 1 and Transferor Company 3)
• Allcargo Global Limited (Resulting Company), formerly known as Allcargo Worldwide Limited and Allcargo Ecu Limited, a wholly-owned subsidiary of Allcargo Logistics

Regulatory Compliance

Allcargo Gati Limited, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, has informed the stock exchanges about this development.

Next Steps

With the NCLT reserving its orders, the logistics industry and investors will be keenly awaiting the final decision on this corporate restructuring. The outcome of this arrangement could potentially reshape the operational structure of these companies within the Allcargo group.

Shekhar R Singh, Company Secretary of Allcargo Gati Limited, confirmed this development in an official communication to the stock exchanges. The company has also made this information available on its website at www.allcargogati.com .

Investors and stakeholders of Allcargo Gati Limited will be monitoring the situation closely as the NCLT's decision could have significant implications for the company's future operations and market position in the logistics sector.

Allcargo Gati , a prominent player in the Express Distribution & Supply Chain and Fuel Station segments, has released its audited financial results for the fiscal year ended March 31, 2022, revealing a mixed financial performance and several strategic decisions.

Financial Performance

The company reported a standalone net loss of ₹2,014.00 lakhs for the year, a significant improvement from the ₹17,632.00 lakhs loss recorded in the previous fiscal year. On a consolidated basis, Allcargo Gati saw an increase in revenue, reaching ₹1,48,994.00 lakhs compared to ₹1,31,424.00 lakhs in the prior year.

Key Board Decisions

New Statutory Auditor

The Board of Directors has recommended the appointment of S.R. Batliboi & Associates LLP as the new Statutory Auditor for a term of five years, replacing the current auditor, Singhi & Co.

Business Restructuring Evaluation

In a significant move, the Board has approved the evaluation of various restructuring options. These include potential merger, amalgamation, or demerger involving Allcargo Gati, its material subsidiary Gati-Kintetsu Express Private Limited, and the Contract Logistics division of its holding company, Allcargo Logistics Limited.

Policy and Operational Changes

The Board also approved several other important measures:

• Amendments to the Related Party Transaction Policy
• Adoption of a new insider trading code
• Closure of the Kathmandu branch office

Divestment of Gati Kausar India Limited

Allcargo Gati has transferred 69.79% equity in Gati Kausar India Limited to Mandala Capital AG Limited for ₹5.00 lakhs. As a result of this transaction, Gati Kausar has ceased to be a subsidiary of Allcargo Gati.

Exceptional Items

The company reported exceptional items totaling ₹2,296.00 lakhs, which included:

• Severance fees
• Asset impairments
• Various provisions

These exceptional items have likely impacted the company's financial results for the year.

The series of strategic decisions and financial outcomes reflect Allcargo Gati's efforts to streamline operations, improve financial health, and position itself for future growth in the competitive logistics and supply chain sector.