Corporate Insolvency Resolution Process (CIRP) Details

  • CIRP initiated by NCLT Chennai Bench order dated 10th May 2023 based on petition filed by Intec Capital Limited (Financial Creditor) under Section 7 of IBC 2016
  • Mr. Sanjay Mehra (IBBI Registration No. IBBI/IPA-001/IP-P01818/2019-2020/12784) appointed as Interim Resolution Professional and later confirmed as Resolution Professional
  • Board of Directors suspended since CIRP commencement date (10th May 2023)
  • Powers of Board vested with Resolution Professional under Section 17 of IBC
  • Last date for claim submission: 24th May 2023
  • Eleven Committee of Creditors meetings held between June 2023 and February 2024
  • CIRP process extended until 17th July 2024 (as of audit report date)

Financial Performance Highlights (Standalone)

FY 2023-24 Financials:

  • Gross Turnover: ₹0 (Previous Year: ₹109.87 lakhs)
  • Other Income: ₹5.76 lakhs (Previous Year: ₹61.86 lakhs)
  • Loss Before Tax: ₹(18.48) lakhs (Previous Year: ₹(82.92) lakhs)
  • Tax Expense: ₹2.88 lakhs deferred tax (Previous Year: ₹3.57 lakhs deferred tax)
  • Net Loss: ₹(21.35) lakhs (Previous Year: ₹(86.49) lakhs)
  • Basic EPS: ₹(0.39) (Previous Year: ₹(1.56))
  • Diluted EPS: ₹(0.39) (Previous Year: ₹(1.56))

Balance Sheet Position as at 31st March 2024:

  • Share Capital: ₹553.09 lakhs (55,30,900 equity shares of ₹10 each)
  • Reserves & Surplus: ₹(621.99) lakhs (Negative)
  • Total Assets: ₹1,322.32 lakhs
  • Total Liabilities: ₹1,322.32 lakhs

Key Balance Sheet Items:

  • Fixed Assets: ₹512.30 lakhs (Tangible) + ₹3,136 (Intangible)
  • Inventories: ₹294.96 lakhs (WIP & Finished Goods)
  • Trade Receivables: ₹3.25 lakhs
  • Cash & Cash Equivalents: ₹11.13 lakhs
  • Long-term Loans & Advances: ₹121.32 lakhs
  • Trade Payables: ₹1,385.82 lakhs
  • Other Current Liabilities: ₹1.23 lakhs

31st Annual General Meeting Arrangements

  • AGM Date: 12th August 2025 at 2:30 PM
  • Mode: Video Conferencing/Other Audio-Visual Means
  • Record Date: 11th July 2025
  • Business Items:

1. Adoption of audited financial statements for FY 2023-24

2. Appointment of M/s Pawan Puri & Associates (FRN: 005950N) as Statutory Auditors for 5 years (until conclusion of 6th AGM)

E-Voting Details:

  • Remote e-voting period: 9th August 2025 (9:00 AM) to 11th August 2025 (5:00 PM)
  • E-voting service providers: CDSL, NSDL, KARVY, LINKINTIME
  • Scrutinizer: Sulabh Jain and Associates, Practicing Company Secretaries
  • Results declaration: Within 48 hours of AGM conclusion on CDSL website (www.evotingindia.com) and forwarded to BSE

Auditor Reports and Qualifications

Statutory Auditors: M/s N. Sankaran & Co. (FRN: 003590S)

Qualified Opinion issued with following key reservations:

1. Going Concern Uncertainty: CIRP process underway since 10.05.2023 with no resolution plan approved by COC, creating material uncertainty about company's ability to continue as going concern

2. Accounting Policy Departures:

  • IND AS 37: Admitted claims of ₹35.34 crore classified as contingent liability instead of provision
  • IND AS 109: Deposits with financial creditor (₹1.21 crore) and accrued interest not written off despite no recovery expectation

3. Post-reporting Date Events: CIRP process extended until 17.07.2024, effects not reflected in financial statements

4. Confirmation of Balances: Unable to obtain sufficient audit evidence for debtors and creditors

Financial Impact of Qualifications:

  • If provisions created for admitted claims: Additional loss of ₹2,265.59 lakhs
  • If deposits written off: Additional loss of ₹120.80 lakhs
  • Total potential loss understatement: ₹2,386.39 lakhs

Secretarial Auditors: Sulabh Jain and Associates

Key Non-compliances Identified:

1. Delayed filing of quarterly financial results under Regulation 33 of SEBI LODR

2. Delayed filing of shareholding pattern under Regulation 31 of SEBI LODR

3. Delayed conducting of AGM for FY 2022-23 (conducted in October 2023 instead of September 2023)

4. Non-maintenance of Structured Digital Database under PIT Regulations

5. Non-functional company website affecting regulatory disclosures

6. Non-payment of listing fees to stock exchange for FY 2022-23

7. Non-appointment of Company Secretary after resignation of previous incumbent

8. Non-filing of MSME-1 returns and Return of Deposit

Admitted Claims under CIRP

  • Financial Creditors: ₹35.34 crore
  • Facility 1: ₹1.72 crore (Corporation Bank/Union Bank)
  • Facility 2: ₹24.04 crore (Various lenders)
  • Facility 3: ₹9.13 crore (Intec Capital)
  • Operational Creditors: ₹45.56 lakhs
  • Total Admitted Liabilities: ₹35.80 crore

Note: Claims covered by guarantees totaling ₹123.30 crore

Other Material Disclosures

  • Bankers: Corporation Bank (now Union Bank), Union Bank of India, DBS Bank, Equitas Small Finance Bank, HDFC Bank (2 accounts), IDFC Bank, ICICI Bank, Indian Overseas Bank, Axis Bank
  • Share Transfer Agent: Cameo Corporate Services Limited
  • Default Status: Wilful defaulter declared by Intec Ltd., multiple loan defaults exceeding 6 months
  • Pending Litigations: Income tax disputes of ₹48.22 lakhs for AY 2006-07 and 2007-08 pending in High Court
  • Statutory Dues Overdue: Service Tax ₹17.50 lakhs, Luxury Tax ₹48.92 lakhs, TDS ₹0.60 lakhs, GST ₹1.42 lakhs
  • Segment Reporting: Primary business segments include Construction Division, Service Apartment Division, and Printing Division

Capital Structure

  • Authorized Capital: ₹15.00 crore (1,50,00,000 equity shares of ₹10 each)
  • Issued, Subscribed & Paid-up Capital: ₹5.53 crore (55,30,900 equity shares of ₹10 each)
  • Major Shareholders (＞5%):
  • Mr. G Ramamurthy: 23,08,810 shares (41.73%)
  • Mrs. Usha: 4,20,658 shares (7.60%)
  • Mr. Chatura M Rao: 4,97,560 shares (8.99%)

Resolution Professional's Responsibility Statement

RP confirms compliance with Section 134(3)(c) of Companies Act, 2013 regarding:

  • Following applicable accounting standards
  • Consistent application of accounting policies
  • Maintenance of adequate accounting records
  • Preparation of accounts on going concern basis
  • Adequate internal financial controls
  • Systems for compliance with applicable laws

#Tags: #RajeswariInfrastructure #CIRP #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Negative