Authority: National Company Law Tribunal Chandigarh Bench (Court-I)

Order Date: 10.07.2026

Case Overview

This application was filed by Rishi Ganga Enterprises Limited (formerly Rishi Ganga Power Corporation Limited) under Section 131 of the Companies Act, 2013. The company sought permission to revise its Financial Statements and Board Report for the Financial Years 2020-21, 2021-22, and 2022-23.

The company was admitted into Corporate Insolvency Resolution Process (CIRP) on 25.01.2018. A resolution plan submitted by Kundan Care Products Limited was approved on 13.11.2018, which wrote off all liabilities. The company's principal asset, a 13.20 MW hydro power plant in Uttarakhand, was destroyed in a natural disaster on 07.02.2021.

An earlier petition (CP (IB) No. 71/CHD/2021) sought revision of financial statements for FYs 2018-19 and 2019-20, alleging incorrect impairment of assets. This petition was withdrawn on 22.08.2023. During its pendency, the current management, believing the revision would be approved, incorporated consequential accounting adjustments in the subsequent financial statements (FYs 2020-21 onwards). This included reinstating impaired assets (Plant & Machinery: Rs. 20,63,22,099/-, Building: Rs. 40,92,05,881/-, Capital Work-in-Progress: Rs. 3,30,86,300/-; Total: Rs. 64,86,14,280/-) and crediting an equivalent amount to 'Capital Reserve' on the liabilities side. The present application was filed to regularize these adjustments, which were based on the now-withdrawn earlier petition.

The Regional Director (Northern Region) and the Income Tax Department were notified. The Income Tax Department reserved its right to undertake proceedings under the Income-tax Act, 1961. The company committed to filing revised income tax returns if required. The Regional Director raised objections concerning the withdrawal of the earlier petition and the pre-emptive auditing of the draft revised statements. The company responded, arguing the new application was for different financial years and the audited drafts were for accuracy, not adoption.

The Tribunal analyzed the submissions and found the proposed revision was intended to regularize accounting adjustments carried forward to ensure the financial statements reflect a true and fair view.

Final Outcome

The application (CP No. 47/Chd/Pb/2024) is allowed. The company is permitted to revise its financial statements for FY 2020-21, 2021-22, and 2022-23. The company must file a certified copy of this order with the Registrar of Companies within 30 days. The modifications must be noted as a footnote in financial statements until FY 2022-23, and the detailed reasons for the revision must be disclosed in the Board's Report for the relevant financial year.

The order does not constitute an adjudication or approval of the contents of the revised statements. The Registrar of Companies, Income Tax Department, and all other competent statutory authorities retain the liberty to scrutinize, verify, and examine the revised financial statements and take action as warranted by law. The company must comply with all statutory requirements and pay all applicable fees, charges, duties, and taxes.

Topics: Financial Restatement, NCLT Proceeding, Corporate Insolvency