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1.tWe draw attention to note 6 to the consolidated financial results which states that as at March31, 2025, GVKPIL Group had accumulated losses. The liabilities of the GVKPIL Group, considering the amounts not provided for are much higher than the assets of the group. One of the subsidiary Company where the project has been terminated are following liquidation basis of accounting. The GVKPIL group has delayed/defaulted in repayments of loans and interest thereon and various loan accounts have been classified as non-performing assets by banks/ lenders including recall of loans /filing of cases under the Insolvency and Bankruptcy Code in certain cases. The Interim Resolution Professional (IRP) / Resolution Professional (RP) have also been appointed in certain subsidiaries, step down subsidiaries and Joint controlled entity by NCLT. There are various litigations going on in the GVKPIL Group. The GVKPIL Group has also provided guarantees and commitments and/or has undertaken to provide financial assistance on behalf of various entities and as further detailed in notes 8, 9, (referring to notes on GVK Coal Developers (Singapore) Pte Limited and GVK Energy Limited), uncertainties are being faced by various projects such as delays / non-development of coal mines in an overseas project where the parent Company has provided guarantees and commitments for the borrowings, losses incurred by gas based power plant in the absence of gas and litigations on rights to claim capacity charge, arbitration on delay of commencement of road projects, termination of various projects etc. Various guarantees given by GVKPIL and GVK Energy Limited (GVKEL) on behalf of their subsidiaries, associates and joint controlled entity have been invoked by the lenders. Further, the GVKPIL has been admitted into Corporate Insolvency Resolution Process (CIRP) process vide NCLT order dated July 12, 2024 and order uploaded on the portal on July 15, 2024 (Insolvency Commencement Date). These factors indicate significant doubt on going concern ability of the GVKPIL group. n nNotwithstanding the above, the financial results of the GVKPIL Group have been prepared by the management on going concern basis as management believes that the outcome of the CIRP shall keep the company as going concern Considering the various uncertainties involved as fully described in the Basis of Disclaimer section of our report, the probable impact could be material and pervasive on these consolidated financial results and that may cause significant doubt on companys ability to continue as a going concern. Accordingly, we are unable to comment that the management assumption of preparing these financial results on going concern basis is appropriate. n |
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The Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n n |
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2.tWe draw attention to Note No 8 to the Consolidated Financial Results regarding GVK Coal Developers (Singapore) Pte. Limited, (GVK Coal Developers) (an associate) in which the GVKPIL Group has investments and has receivables aggregating to Rs.79,048 Lakhs and to whom the holding company along with others jointly and severally had given irrevocable and unconditional guarantee and commitments (CG) for loans up to aggregating to USD 1132.45 Million (Rs.9,69,167 Lakhs as on March 31,2025) of principal amount (GVKPIL itself guaranteed towards the repayment of limits which shall be lower of either 53.9% (including in respect of the Hedging Agreements if any) of all principal amounts outstanding under the finance documents or USD 692.61 Million) taken by the aforesaid associate Company part of which is collateralized by pledge of 155,587,500 (March 31, 2024: 155,587,500), 130,287,382 (March 31, 2024: 130,287,382) and 48,000,000 (March 31, 2024: 48,000,000) shares of GVK Energy Limited, GVK Transportation Private Limited and GVK Airport Developers Limited respectively for securing loan obtained by GVK Coal Developers (Singapore) Pte. Limited and has also undertaken to provide financial assistance of USD 3.11million (Rs.2,662 Lakhs as on March 31,2025) with respect to which there are multiple significant uncertainties including outlook on the sector, non-achieving of financial closure and clearances for the project, concluding an appropriate solution with various stakeholders including lenders, and necessary environmental and regulatory clearances etc. The GVK Coal Developers current liabilities exceeded current assets by USD 3029 million (Rs.25,92,378 Lakhs) as of March, 2025 and accumulated losses as of March, 2025 is USD 1839 million (Rs. 15,73,525 Lakhs) based on audited special purpose consolidated financial statements of GVK Coal Developers (Singapore) Pte. Limited. The GVK Coal Developers lenders filed a claim in the High Court of Justice Business and Property Courts of England and Wales Commercial Courts (England Court) on November 09, 2020 and have sought to recover the amounts advanced to GVK Coal Developers. The England court vide its order dated October 19, 2023 has crystalized the amount payable by the defendants (GVKPIL and other guarantors / stakeholders in GVK Coal Developers) at USD 2.19 billion including the amount towards interest. nAs per legal opinion obtained by the Holding company, the order dated 19th October 2023 passed by the England court is not speaking order. It has also been opined that the Order dated 19.10.2023 cannot be enforced in India and is contrary to the substantive law of India and is also in violation of the principles of natural justice. nAs per the GVKPIL management, several attempts were made by the company to have a solution with the lenders including an agreement dated March 23, 2017, wherein a non-binding framework solution was agreed upon for a settlement. Subsequently also there were several efforts to engage with the lenders to arrive at a settlement. nThe GVK Coal Developers having failed to repay debt obligation, ICICI bank has invoked CG of GVKPIL on Nov 02, 2020 and demanding to pay the GVK Coal Developers dues. nFurther, one of the lenders has filed an application under section 7 of the Insolvency and Bankruptcy Code 2016 to initiate Corporate Insolvency Resolution Process (CIRP) against the holding company (being guarantor for loan taken by GVK Coal Developers) before National Company Law Tribunal (NCLT), Hyderabad on July 14, 2022 and NCLT has admitted the Company into CIRP vide Order dated July 12, 2024. Interim Resolution professional (IRP) appointed by the Honble NCLT and IRP has taken possession of all assets of GVKPIL.As approved by NCLT vide its order dated September 05, 2024, IRP has been confirmed as Resolution Professional (RP) of the Company. n nRP has received claims to the extent of Rs. 21,79,248 Lakhs from the Financial Creditors (Including claim of Rs. 18,83,145 Lakhs from Financial Creditors of GVK Coal Developers) and RP has admitted the claims to the extent of Rs.15,94,489 Lakhs (Including claim of Rs. 14,89,486 Lakhs from Financial Creditors of GVK Coal Developers) for CIRP purpose as per IBC rules and balance Rs.5,84,760 Lakhs (Including claim of Rs. 3,93,653 Lakhs from Financial Creditors of GVK Coal Developers) claims are not admitted. The Resolution professional has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against admitted claims in the consolidated financial results. n nWhile the GVKPIL Group has made a provision for impairment in respect of the aforesaid investment and receivables aggregating to Rs.79,048 Lakhs, no provision has been made towards the Corporate Guarantee issued by GVKPIL in respect of which the above-mentioned claims made by the financial creditors to the extent admitted by the RP Considering the various uncertainties and complexities involved as mentioned above, we are unable to comment on the viability of the GVK Coal project and the additional provision that may be required concerning the aforementioned guarantees and commitments made by the GVKPIL and the resultant impact of the same on these consolidated financial results. n |
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The company has already made provision of the entire investment and receivables. However, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. |
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3.tThere are certain stepdown subsidiaries of the Company where the Resolution Plans were approved as per the IBC code due to which there are certain uncertainties in the GVKPIL Group as described below: nA.tWe draw attention to Note 9(b) to the consolidated financial results regarding Deconsolidation of assets and liabilities of GVK Power (Goindwal Sahib) Limited (GVKPGSL), a step down subsidiary of the Holding Company with effect from 10th October 2022, as the same has been admitted into Corporate Insolvency Resolution Process on October 10, 2022 based on petition filed by Axis Bank Ltd, one of the lenders in the consortium of GVKPGSL with the Honble NCLT, Hyderabad invoking Corporate Insolvency Resolution Process against the GVKPGSL and the Honble NCLT Hyderabad has approved the resolution plan vide its order dated 22.12.2023. As per the said order, the secured lenders have received Rs.1078 Crores against their claims of Rs.6585 Crores. i.e. with a deficit of Rs.5507 Crores. The GVKEL has provided Corporate Guarantee to the lenders of GVKPGSL with respect to the amount lent by them. Lenders through its security trustee (IDBI Trusteeship services limited) have invoked the corporate Guarantee. nFurther, during the financial year 2023-24, one of the lenders (IDBI) has filed the case against the GVKEL demanding the amount of Rs.1,494 Crores in the Honble NCLT, Hyderabad. GVKEL has been admitted into Corporate Insolvency Resolution Process (CIRP) vide NCLT order dated May 06, 2025 and order uploaded on the portal on May 07, 2025. Vide the said Order, a moratorium has been declared under Section 14 of the IBC and IRP has been appointed to carry out functions envisaged under the Code including taking charge of management of GVKEL. nConsidering the GVKEL is in to CIRP and the outcome of the process is pending, the amount which may be ultimately payable in this regard is not determinable at this stage. Hence, no accounting impact is given in the books of account and no provision has been made in this regard in the financial statements. nIn view of the same, we are unable to comment on the ultimate impact of the above-mentioned matter and the liability that may be required to be recorded in the consolidated financial results of the company. n nB.tWe draw attention to Note No. 9(c) to the consolidated financial results as per which GVK Gautami Power Limited (GVKGPL), a jointly controlled entity of GVKEL has been admitted into Corporate Insolvency Resolution Process (CIRP) during the financial year 2023-24, i.e. on October 20, 2023, based on petition filed by Edelweiss Asset Reconstruction Company Ltd, one of the lenders in the consortium of GVKGPL with the Honble NCLT, Hyderabad and the Honble NCLT Hyderabad has approved the resolution plan vide its amended order dated 03rd April 2025. As per the said order, the secured lenders have received Rs19,990 Lakhs against their claims of Rs.2,75,957 Lakhs i.e. with a deficit of Rs.2,55,967 Lakhs. GVKEL has already provided for an impairment for the full value of investment in GVKGPL of Rs 51,897 Lakhs. n nGVKEL has provided Corporate Guarantee to the lenders of GVKGPL with respect to the amount lent by them. This Corporate Guarantee has not been invoked by lenders so far (account became NPA on 1st October 2016) and no demands have been raised on GVKEL. This Corporate Guarantee may however be invoked by the Lenders of GVKGPL with respect to the amount lent by them and unpaid and lenders may submit claims to IRP. In such eventuality, GVKEL may need to reimburse the same. n nThe extent of the liability that may arise in respect of guarantee given is not determinable at present and no provision has been made in this regard in relation to such liability by the management. In the light of the above, we are unable to comment upon consequential impact, if any, arising out of the same in the accompanying consolidated financial results. n |
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One of the suspended director of GVKEL has filed an appeal against the NCLT order before NCLAT, Chennai on May 12, 2025 and the next hearing of the case is scheduled on June 02, 2025. Considering the appeal filed against the NCLT order before NCLAT, Chennai, the outcome of which is still pending. Hence, the impact of the same is unascertainable. nHowever, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n |
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4.tAs discussed in detailed in Note 9(i) to the consolidated financial results regarding annulment of settlement by Edelweiss and ARCIL with respect to their loans / NCDs to GVKEL and Alaknanda Hydro Power Company Limited (AHPCL), non-accounting of estimated increase in liability on account of annulment of settlement terms by Edelweiss (amount not ascertained), invocation and transfer by Edelweiss of 46,60,11,000 Equity shares of AHPCL held by GVKEL of Rs.10 each, recording of exceptional loss of Rs.19,486 lakhs during the year ended March 31, 2023 by GVKEL on account of invocation of pledged shares and transfer by Edelweiss (being difference in face value of pledged shares invoked by Edelweiss and the liability of Edelweiss appearing in books of GVKEL and AHPCL), recording of discharge of liability of Edelweiss pending legal suit before Honble Delhi High Court, wherein GVKEL pleaded that as a consequence of the invocation and transfer of a valuable asset, GVKEL liability towards the loan has been discharged and since the value of share is far in excess of the outstanding loan liability, the excess share to be returned. Next hearing of the case is scheduled in September 4, 2025. n nDue to above mentioned default in the repayment of amount due on Loan / NCDs, ECL Finance Limited, Edelweiss Asset Reconstruction Company Limited, India Credit Fund II & Ecap Equities Limited (collectively referred to as Edelweiss) (through its debentures trustee namely Catalyst Trusteeship Limited) has filed petition with the Honble NCLT, Hyderabad invoking Corporate Insolvency Resolution Process against the company and GVK Energy Ltd. on October 21, 2022, and petition against GVKPIL was disposed of on July 23, 2024 as the GVKPIL is admitted into CIRP and in case of GVKEL, the next hearing of the case is scheduled on July 18,2025. n nMeanwhile, during the financial year 2023-24, AHPCL, GVKEL and GVKPIL has entered into another settlement agreement with the lenders on October 09, 2023, which requires to pay Rs 33000 Lakhs and simple interest @12.50% pa is payable w.e.f. 1st November 2023. The entire amount along with interest is to be paid on or before 30th November 2023. The GVKPIL Group could not comply with the settlement terms and requested for extension of time to Edelweiss and they have extended the time till 31st July 2024 with phased payments. On 27th February24 the lead lender of Alaknanda Hydro Power Company Limited has approved the release of Rs 20000 Lakhs out of Rs 33000 Lakhs to be paid and Rs.13000 Lakhs to be brought in by GVKPIL group. Till date GVKPIL group has paid an amount of Rs 13000 Lakhs as agreed. As per the terms of the settlement, lenders will release the securities including the transfer of 46,60,11,000 Equity shares, each having face value of Rs.10, of AHPCL to GVKEL on payment of amount due as per the settlement agreement. n nMeanwhile, the company received the intimation from Phoenix ARC Private Limited (PhoenixARC) vide letters dated October 14, 2024 that the Edelweiss and ARCIL has been assigned the facilities to Phoenix ARC. On December 02, 2024, Phoenix ARC has demanded for the repayment of Rs 52,261.55 Lakhs and Rs 44,680.86 Lakhs against Debentures and Loans respectively. GVK Energy requested to extend the time to settle the dues and Phoenix ARC extended the time till February 28, 2025. GVK Energy also sent a request for a settlement and Phoenix ARC yet to respond to it. nWith respect to the above matter, the RP has received claims to the extent of Rs.1,16,399 Lakhs from the Phoenix ARC and RP has admitted the claims to the extent of Rs.1,05,028 Lakhs and balance claims of Rs.11,397 Lakhs are not admitted. The Resolution professional has invited Resolution plans and Resolution applicants have been submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. therefore, no accounting impact is given in the books of account and no provision has been made against admitted claims in the Consolidated Financial results. n nIn view of the same, we are unable to comment on the accounting done in this regard in books of account and the ultimate impact of the same including of the invocation of the settlement offer by Edelweiss, invocation of pledged shares of AHCPL by Edelweiss, invocation of corporate guarantee issued by the GVKPIL and GVKEL impact of the proceedings in the NCLT, impact of the assignment of facilities by Edelweiss and ARCIL to Phoenix ARC and the additional liability that may arise in this regard if any on the Consolidated financial results till the payment of dues as per settlement agreement. n nFurther, in the light of the above, we are unable to comment upon consequential impact, if any, arising out of the same in the accompanying consolidated financial results with respect to the settlement amount of Rs.13,000 Lakhs paid by the company to Edelweiss disclosed under other non-current assets. n |
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Management confident that the settlement with the lender will be successfully completed. nHowever, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n |
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5.tAs discussed in detailed in Note 9(a) to the Consolidated Financial Results regarding GVK Coal (Tokisud) Private Limited (GVKCTPL), a step-down subsidiary of the Holding Company. The Honble Supreme Court of India had deallocated dedicated coal mine allotted to GVK Power (Goindwal Sahib) Limited (GVKPGSL). GVKCTPL, a subsidiary company of GVKEL and mine operator was offered a compensation by the Nominated Authority of Rs.11,129 Lakhs as against carrying value of assets of Rs.31,113 Lakhs as at March 31, 2017. GVKCTPL had appealed against the said order in the Honble High Court of Delhi. The aforesaid court vide its order dated March 09,2017, directed GVKCTPL to submit its claim to the adjudicating authority constituted under the Coal Mines (Special Provisions) Act, 2015. Subsequently GVKCTPL submitted its claim for the balance amount of Rs. 19,882 Lakhs to the aforesaid authority. The nominated authority under the Ministry of Coal vide its order dated 16th March 2022 has further approved and released compensation of Rs.13,867 lakhs. Out of this an amount of Rs.8,883 lakhs have been deposited by nominated authority in interest bearing account with Registrar General of the Court as per the directions of the high court of Delhi dated 11th April 2022 and an amount of Rs.4,984 lakhs have been paid to lenders by nominated authority towards the balance dues payable as per the claims made by the lenders as on the date of vesting orders less the amount already paid to the lenders. Including the above amount of Rs 4,984 lakhs, a total of Rs 23,761 Lakhs, being the due on vesting date has been paid to the lenders. Nominated authority has advised in the above order to approach Coal Tribunal in respect of disputes including the compensation disallowed with regard to R&R costs. The GVKCTPL has accordingly filed the appeal under sec. 27 of the Coal Mines (Special Provisions) Act, 2015 with Coal Tribunal for Rs 34,830 lakhs on August 01, 2022 and the next hearing of the case is scheduled on June 11, 2025 . n nIn the light of the above, we are unable to comment on the recoverability of assets with carrying value of Rs.6,015 Lakhs and consequential impact, if any, arising out of the same in these accompanying consolidated financial results. n |
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The matter is sub-judice and management is hopeful of recovery. Hence, no provision is made. nHowever, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n n |
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6.tNote 13 to the consolidated financial results regarding investigation by various Government agencies on various alleged irregularities relating to conflict of interest, misuse of funds, money laundering and other matters, pending completion of which and non-provision of certain related information sought from the holding company by us including complete copy of the Enforcement Directorate complaint. CBI has filed a charge sheet before the Chief Metropolitan Court, Mumbai on February 09, 2023, laying as allegation under section 120B read with section 420 of IPC against Mumbai International Airport Limited (MIAL), Vice Chairman & erstwhile CFO of the Holding Company and four other GVKPIL group companies apart from others. The Court has granted bail to all the accused. The main issue alleged is siphoning of fund of MIAL eventually causing a loss to Airport Authority of India (AAI). Vide order dated 08.12.2023, fresh cognizance of offences in the chargesheet has been taken and accused persons have been summoned. However, the said order has been currently stayed by the Ld. Sessions Court, Mumbai in revision petitions preferred by various accused persons and therefore, the proceedings are currently stayed in the matter and matter will resume only once the stay order gets vacated by the Revision Court. The company is of the view that the case will not stand the test of scrutiny of the court and will eventually be dismissed. The company is also of the view that the charges are unsubstantiated and no offence u/s section 420 IPC is made out as there is no loss to AAI, Government, or any Tax Authorities as alleged. Next date before Sessions Court in the revision petitions is June 13,2025 nIn addition to be above, the Enforcement Directorate (ED) had also taken up the investigation under the Prevention of Money Laundering Act (PMLA) on the basis of an FIR registered by the CBI. ED had filed a complaint in April 2021 on the same matters against the above-mentioned parties and some of the subsidiaries, joint ventures and step-down subsidiaries of the Company, their directors and officers. ED had filed a complaint before the City Court and Additional Session Judge, Greater Bombay under Section 45 of Prevention of Money Laundering Act, 2002 for commission of offence of Money laundering under section 3, read with section 70, Punishable u/s 4 of the Prevention of Money Laundering Act, 2002. The matter is currently at stage of adjudication of application on behalf of Accused-4 seeking supply of all the unrelied documents and unrelied statement u/s 50 PMLA and and is fixed for filing reply of Enforcement Directorate on June 19,2025. nThe Audit Committee of the Holding Company, based on the legal advice received by the Audit committee of Mumbai International Airport Limited (MIAL), have decided not to proceed with any independent investigation on the matters mentioned in the FIR or the complaint filed by ED. Considering the status of the proceedings with cases related to CBI and ED, the implications, if any, that may arise on the GVKPIL group can't be ascertained and the impact if any of the same on the consolidated financial results cannot be commented upon. n |
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Investigations by various agencies are completed and charge sheet filed. The ultimate outcome is subject to Judicial scrutiny and hence the impact of the same is not ascertainable. nHowever, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n |
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7.tWe draw attention to Note 12 to the consolidated financial results regarding GVK Perambalur SEZ Private Limited (GVK SEZ), a wholly owned subsidiary company. GVK SEZ has Investment Property having book value of Rs.11,655 Lakh as on 31st March 2025. GVK SEZ stood as a Guarantor and mortgaged its land having book value as mentioned above (admeasuring 2,506.25 Acres) to Syndicate Bank (since merged with Canara Bank) on account of loans taken by the GVKPIL (the Holding Company). GVKPIL has since repaid the loan taken from Canara Bank and the bank has also acknowledged the same. However, Canara bank has not issued a no due certificate and has not returned the original title documents by exercising the right of general lien under section 171 of Indian Contract Act,1872 and has enforced general lien over the title deeds in the name of GVK SEZ for liabilities of GVK Coal (Singapore) PTE Ltd, an associate of GVKPIL. GVKPIL and GVK SEZ have jointly filed writ petition before High Court, Telangana on October 27, 2021, stating that Bank exercising of general lien under section 171 of the Indian Contract Act, 1872 is wholly misconceived and illegal and contrary to the terms of Guarantee extended by the GVK SEZ and the matter is yet to be listed. GVKPIL has obtained independent legal opinion based on which the outcome of the subject matter will be positive and the bank will be directed to release the documents given as security. Further, Enforcement Directorate (ED) has provisionally attached the said Land property in view of investigation under Prevention of Money Laundering Act (PMLA). However, Honble High Court of Telangana vide its order dated April 22, 2021 has stayed the proceedings by issuing Show Cause Notice to ED. As on March 31, 2025, the status remains the same. The matter is under litigation. Pending these litigations, the recoverability of Investment Property having book value of Rs.11,655 Lakh (March 2024: Rs 11,655 Lakhs) of this land is not determinable. |
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At present the matter is subject to Judicial scrutiny and hence the impact of the same is not ascertainable. nHowever, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n |
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8.tWe draw attention to the trade receivables in consolidated financial results where there are certain old trade receivables of Rs. 455 Lakhs which are subject to confirmation/ reconciliation against which no provision has been considered by the management as they are confident of their recovery/adjustment. In the absence of any confirmation/reconciliation we are unable to comment on the adjustment required against these balances and other resultant impact on these consolidated financial results. |
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Management is confident that the trade receivable will be realized. Hence, there is no provisions have been made. n nHowever, the Resolution professional (RP) appointed by NCLT vide its order dated July 15, 2024 under IBC code. In accordance with Corporate Insolvency Resolution Process (CIRP), RP has invited Resolution Plans and Resolution Applicants have submitted Resolution plan which will be considered by CoC and actual liability as per resolution plan will be determined on approval of resolution plan which the company would be liable to pay. Therefore, no accounting impact is given in the books of account and no provision has been made against in this regard in the Consolidated Financial results. n |
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