Oricon Enterprises Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 03, 2007 has approved, in principle, the merger of National Cotton Products Pvt Ltd ("NCPPL"), a subsidiary of the Company and G Claridge and Co. Ltd ("CCL") into the Company and have authorized Mr. Rajendra Somani and / or Mr. BK Toshniwal Directors of the Company to take all steps to consummate the same, including appointing a valuer to undertake a valuation of the aforesaid Companies. The consummation of such merger is subject to receipt of all relevant approvals, including from the shareholders of the Company and Hon'ble High Court, Bombay. The board of directors of the Company has also agreed subject to necessary approvals as may be required to the creation of a charge over the assets of the Company to secure certain borrowings that may be availed of by NCPL and GCL.