Campus Activewear Ltd announces the approval of merger of its wholly-owned subsidiary

Campus Activewear Limited, one of the India's largest omnichannel sports and athleisure footwear brand, has announced the approval of the merger of its wholly owned subsidiary Campus AI Private Limited with the Company by National Company Law Tribunal, New Delhi (NCLT) vide its order dated 11th August 2022.

The revised audited financial results for the year ended on March 31, 2022 have been approved by the Board of Directors in the meeting held on 23rd September, 2022. The key changes are as under:

- The merger of its wholly owned subsidiary has no impact on the Revenue and EBIDTA of the Consolidated entity.

- The Merger Order is effective from 1st April 2020 being the Appointed Date and accordingly, the tax computations for Fy'2020-21 and Fy'2021-22 have been revised. Full impact of mergerhas been assessed and adjusted in revised Fy'21-22 financials.

- For Fy'2020-21, the one-time additional tax impact of INR. (189.74) million has been captured as "Impact on Deferred tax / Current tax for earlier years" in the revised financials for Fy'2021-22.

- For Fy'2021-22, the company has adopted the lower tax regime of 25% and the overall positive impact of lower tax amounting to INR. 20.28 million has been included in the tax charge for the year.

Commenting on the merger, Mr. H.K. Agarwal, Chairman & Managing Director said, "Campus Activewear is expected to benefit from the merger mirroring the management's quest for creating shareholder value. It adds economies of scales, cost rationalization, simplified corporate structure and streamlining business operations leading to enhanced overall business capabilities. Campus Activewear aspires to be an integral part of every Indian and continues to offer unique footwear experience in the sports and athleisure segment raising India's fitness quotient."

Source : Equity Bulls

Keywords

CampusActivewear Merger NCLTApproval CampusAI Subsidiary