EMKAYTOOLS

EMKAY TAPS AND CUTTING TOOLS LTD.

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Cl '.\: L29l20.\1fl 1995f'LC091091

December 24, 2024

National Stock Exchange of India Limited

Exchange Plaza
Plot No. C/1, G Block
Sandra Kurla Complex
Sandra (East), Mumbai 400 051.
Series: SM

Symbol: EMKAYTOOLS

Dear Sirs,

Subject: Apportionment of Cost of Acquisition of Equity Shares of Emkay Taps and Cutting Tools Limited
and EEJuity Shares of Emkay Tools Limited pursuant to the Composite Scheme of Arrangement

With reference to the captioned matter, please find enclosed herewith the communication being issued for general
guidance of Equity Shareholders of the Company in relation to the apportionment of the pre-demerger cost of
acquisition between the equity shares of Emkay Taps and Cutting Tools Limited and the Equity Shares of Emkay
Tools Limited for the purposes of the Income-tax Act, 1961. The same is also available on the website of Emkay
Taps and Cutting Tools Limited.

A copy of the above communication is also being sent to all those shareholders to whom the Equity Shares are
issued along with the allotment advice by Emkay Tools Limited.

Please take note of the above information on your record.

Thanking You,
Yours truly,
For Emkay Taps and Cutting Tools Limited
Digitally 5igned by AOlTYA VINOD KOKIL
ON: c-=IN, o--=Personal,

ADITYA 2.5.4.20=7f351 ebcl ede21 f45232331333

lfb280fc91 a76e4c4c6a4836f56e5560fa0f
lb, posta1Code=440015, st=Maharashtra,

VINO D Ko Kl L seria]Nurnber=2fb4a656bb5d705bffc6lf
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Date: 2024.12.24 12:41:53 +05'30'

Aditya Vinod Kokil

Company Secretary & Compliance Officer

Telephone Nos. 91-9226071464 E-mail: [email protected]:www.cmkaytools.com, www.etctl.com

 EMKAYTOOLS
EMKAY TAPS AND CUTTING TOOLS LTD.
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Cl:\: L.29220,lll1995PLC0910')I • ,_

FOR ATTENTION OF THE SHAREHOLDERS OF EMKAY TAPS AND CUTTING TOOLS LIMITED

The Hon'ble National Company Law Tribunal, Mumbai Bench has vide its order dated October 28,
2024 sanctioned the Composite Scheme of Arrangement between Emkay Taps And Cutting Tools
Limited and Emkay Tools Limited and their respective shareholders ('the Scheme') under Sections
230 to 232 read with Section 66 of the Companies Act, 2013 and other applicable provisions of the
Companies Act, 2013 and rules framed thereunder.

In terms of the Scheme, the Demerged Undertaking of Emkay Taps And Cutting Tools Limited has
been demerged and stands transferred and vested in Emkay Tools Limited, on a going concern basis.

On Thursday 5th December 2024 Emkay Tools Limited has allotted 1 (One) equity share of INR 1/-
(Rupee One Only) each for every 1 (One) equity share of INR 10/- (Rupees Ten Only) each held by
shareholders of the Emkay Taps And Cutting Tools Limited as on record date fixed for the purpose
Le. December 04, 2024 pursuant to the Scheme. On December 23, 2024, the aforesaid equity shares
of the Resulting Company have been credited in dematerialized form after necessary approvals from
Depositories and Registrar and Transfer Agents ('RTA'), in the respective accounts of the
shareholders who held the equity shares of the Demerged Company as on the Record Date.

For the purpose of determining the post demerger cost of acquisition of the equity shares of Emkay
Taps And Cutting Tools Limited and the cost of equity shares of EmkayTools Limited under the Income
Tax Act, 1961 , the shareholders are advised to apportion their pre-demerger cost of acquisition of
Emkay Taps And Cutting Tools Limited's equity shares in the following manner:
% of Cost of Acquisition of Emkay Taps And
Name of the Company
Cutting Tools Limited
Towards Equity Shares of Emkay Taps And 87.28%
Cutting Tools Limited
Towards Equity Shares of Emkay Tools Limited 12.72%

Accordingly, the cost of acquisition of equity shares allotted in Emkay Tools Limited will be 12. 72% of
the total cost of acquisition of the Equity Shares held in Emkay Taps And Cutting Tools Limited, prior
to the demerger. The same is based on "net book value" of the assets of the Demerged Undertaking
to the "net worth" of Emkay Taps And Cutting Tools Limited. This is based on the certificate obtained
from P.S Thakare , Chartered Accountants .

Telephone Nos. 91-9226071464 E-mail: [email protected]:www.emkaytools.com, www.etctl.com

 EMKAYTOOLS
EM KAY TAPS AND CUTTING TOOLS LTD.
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Further, according to the provisions of Section 47(vi)(d) of the Income Tax Act, 1961, the issue of
equity shares by Emkay Tools Limited pursuant to the Scheme, to the equity shareholders of the
Emkay Taps And Cutting Tools Limited in consideration of the transfer and vesting of the Demerged
Undertaking will not be regarded as transfer.

This communication is merely for the general guidance of the shareholders and should not be
considered as a substitute for any independent opinion that the shareholders may obtain. Emkay Taps
And Cutting Tools Limited takes no express or implied liability in relation to this guidance.

Telephone Nos. 91-9226071464 E-mail: emka)'[email protected]:www.emkaytools.com, www.etctl.com