(a) Clause 11.3 of the scheme provides for adjustment for differences in accounting policies between Transferor Companies and Transferee Company. In this regard, it is submitted that in addition to compliance of AS 14 Transferee Company shall pass such accounting entries which are necessary in connection with the scheme to comply with other applicable accounting standard such as AS-5, etc. (b) The income tax department vide its letter dated 16/07/2014, annexed here to as Exhibit –D, has made an observation interalia stating therein that the Fourth Transferor Company is having outstanding demand and there interest be protected . In this regard, the deponent submits that the Tax issue implication , if any, arising out of the scheme is subject lo Final decision of Income Tax Authorities. The approval of the scheme by this Hon’ble court may not deter the Income Tax Authority to scrutinize the tax return filed by the transferee Company after giving effect to the scheme The scheme. The decision of Income tax Authority is binding on petitioner company. (c) Clause 11 of the Scheme provides for issue of shares by the Transferee company to the Shareholders of the Transferor companies upon the scheme becoming effective. It is observe from the list of shareholder provided by the petitioner companies that the 3rd Transferor Company is one of the shareholders of the 1st Transferor company. Similarly, 1st Transferor Company is one of the shareholders
