Concord Control Systems to merge with wholly owned subsidiary Advanced Rail Controls

The National Company Law Tribunal approved the first motion for the merger and amalgamation of Advanced Rail Controls Private Limited (transferor company) with its parent company, Concord Control Systems Limited (transferee company), on August 26, 2025. The scheme, effective from April 1, 2025, aims to consolidate resources, enhance operational efficiencies, and maximize shareholder value.

As the transferor company is a wholly owned subsidiary, new share issuance or valuation reports are not required. Both companies, engaged in railway technology and electrical/electronics products, reported strong net worth as of March 31, 2025. The transferor company had a net worth of INR 1643.65 lakh, comprising INR 306.40 lakh in paid-up equity share capital and INR 1337.25 lakh in reserves and surplus. The transferee company's net worth stood at INR 11149.46 lakh, with INR 630.05 lakh in paid-up equity share capital and INR 10519.41 lakh in reserves and surplus.

The NCLT has dispensed with the requirement for convening meetings of equity shareholders, secured creditors, and unsecured creditors for both companies. This decision was based on consent affidavits received and the nature of the wholly owned subsidiary merger. However, Concord Control Systems Limited will serve individual notices to its creditors, inviting objections or comments within 30 days.