net of provisions) AND in view of the averment made in Paragraph 13 of the Affidavit in support of Company Summons for Direction it is further stated that there are no Secured Creditors in the Applicant Company AND in view of the averment made in Paragraph 14 of the Affidavit in support of Company Summons for Direction it is further stated that there are Unsecured Creditors in the Applicant Company and the proposed Reduction neither involves any financial outlay/outgo on the part of the Applicant Company nor does it directly or indirectly involve any outflow of the Applicant Company’s assets to its Members and is only in the nature of a book entry. Consequently, such Reduction will not prejudice the unsecured creditors of the Applicant Company. It is specified that the Reduction of Share Capital (Securities Premium Account) does not involve either the diminution of any liability in respect of unpaid capital or the payment to any shareholder of any paid-up capital. The proposed Reduction would not in any way adversely affect the operations of the Applicant Company or the ability of the Applicant Company to honour its commitments or to pay its debts in the ordinary course of business. Further, no compromise or arrangement is contemplated to be made with the creditors under the proposed Reduction. In view of the above, the procedure prescribed under Section 101(2) of the Companies Act, 1956 is dispensed with.
