NCLT allows Capital Reduction to the tune of Rs.1.95 Crores to Skolte Solutions [Read Order]

NCLT - Capital Reduction - Skolte Solutions - Taxscan

The National Company Law Tribunal (NCLT) Kochi Bench allowed the Capital Reduction to the tune of Rs.1.95 Crores to Skolte Solutions.

The Petitioner Company, Skolte Solutions was first established as Skolte Capital Private limited in 2019 for the purposes of establishing a Non-Banking Financial Company. As mandated by Section 45-I (A) of RBI Act 1934, a capital of two crores was raised by the company prior to applying for Non-Banking Financial Company- Non-Deposit Taking Systemically Important (NBFC-ND-SI) license. However, the Reserve Bank of India denied the license to the company.

The company subsequently changed its name to Skolte Solutions Private Limited and amended it to the main object from lending money to corporate management services. To enable the company to have an ideal capital structure commensurate with the current business and assets, the capital reduction Petition was filed before NCLT Kochi Bench under Section 66 of Companies Act, 2013.

The Petitioner Company stated that the proposed reduction of capital in the manner proposed would enable the Company to have an ideal capital structure commensurate with the current business and assets. It is certified that the proposed reduction of capital will not adversely affect the company and its shareholders, creditors, employees, and other stakeholders as a whole. It is also stated that the Company has not accepted any deposits from the public and has no secured creditors as on date of this petition and that the Petitioner Company is not having any foreign investments and, therefore, was not required to comply with the provisions of FEMA and RBI guidelines in respect of Foreign Direct Investment (FDI). It is also stated that the proposed reduction of share capital has no adverse impact on the employees as there are no employees working on the rolls of the Company as of 31.03.2021 and the tax implication arising out of such reduction of share capital is subject to the final decision of the Income Tax Authorities. Certificate from Auditor and declaration from Directors of the Company along with the audited financial statements as of 31.03.2021 have been produced before this Tribunal.

The Petitioner was represented by Advocate Nebil Nizar and instructed by JKM Associates, Kochi.

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