Has considered and approved the Scheme of Arrangement of Melstar Fashions Pvt Ltd with the Company and their respective Shareholders ("Scheme"). Melstar Fashions Pvt Ltd owns the Trademark "MELSTAR", which is being used by the Company currently under a right to use agreement without any consideration. The Scheme will achieve transfer of the Trademark to the Company. The Scheme of Arrangement envisages the following: - Amalgamation of Melstar Fashions Pvt Ltd with the Company - The Appointed Date for the Scheme would be April 01, 2005. - Pursuant to the Scheme, the Company shall issue paid up in the share capital of the Company for face value of Rs 10/- each credited as fully paid up in the share capital of the Company for every 50 equity shares of Rs 10/- in MFPL. This will result in issue of only a token consideration of Rs 20,000/- being discharged to the shareholders of Melstar Fashions Pvt Ltd, who are promoters of the Company. - Adjustment of Securities Premium Account and General Reserve Account against revaluation of assets of the Company. The Scheme is subject to requisite consent, approval of the requisite majority of the shareholders, lenders, creditors of the Companies, the Hon'ble High Court of the Judicature at Bombay, the permission or approval of the Central Government or any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme. Melstar Information Technologies Ltd. has informed the Exchange that the Company during the financial year ended March 31,2006 had initiated amalgamation of Melstar Fashions Private Limited with the Company in terms of a Scheme of Arrangement approved by the Exchange. The Appointed date for the Scheme was April 01,2005. The company has already informed the Exchange that the Hon'ble High Court, Bombay has sanctioned the Scheme of Arrangement of Melstar Fashions Private Limited with the Company on September 15,2006. The company has further informed the Exchange that in view of expected delay in finalizing Annual Accounts incorporating adjustments arising out of the "Scheme of Arrangement" in the accounts for the year ended March 31,2006 and additional time required for printing and dispatching the Annual Reports to the shareholders, the Company has obtained approval of the Registrars of Companies, Maharashtra to hold the AGM on or before December 30,2006. (As Per NSE Bulletin Dated on 11/10/2006)