Garware Polyester Ltd: Outcome of Board Meeting

Garware Polyester Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 23, 2011, considered and approved a Scheme of Arrangement between Garware Chemicals Limited and Garware Polyester Limited and their respective equity shareholders ('the Scheme') under Sections 391 to 394 read with Sections 78, 100 to 103 of the Companies Act, 1956. The salient features of the Scheme are as under:

1. Appointed Date for amalgamation is April 01, 2010.

2. The Scheme envisages the demerger of Manufacturing Business of Garware Chemicals Limited into Garware Polyester Limited. Upon this Scheme becoming effective and upon vesting of the Manufacturing Business of Garware Chemicals Limited in Garware Polyester Limited in terms of this Scheme.

3. Pursuant to Scheme, shares will be allotted on the following basis:

2 (Two) Equity Shares of Rs. 10 each fully paid up of GPL for every 79 (Seventy Nine) Equity Shares of Rs. 10 each fully paid up, held by the shareholders (other than GPL) in GCL.

4. The Scheme is subject to requisite consent, approval of the requisite majority of the shareholders, lenders and creditors of Garware Polyester Limited and Garware Chemicals Limited, of the Stock Exchange, the Bombay High Court, the Central Government or any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.