While approving Resolution Plan, since 92% haircut and Transactional Auditor examined only two years, NCLT directs RP to examine the last 6 years Financial Statements/IT Returns/GST Returns/Cash Flow/Fund Flow Statements in detail – Rachna Jhunjhunwala, RP of Power Max (India) Pvt. Ltd. – NCLT Kolkata Bench
In the present case, total admitted claims are of Rs. 48.36 Crore, the liquidation value is Rs. 4.08 Crore and the value of the Resolution Plan is of Rs. 4.01 Crore, leading to a “haircut” of about 92%. The RP has appointed a transactional auditor who has examined only two financials’ years i.e., 2020-2021 and 2021-2022, and unaudited Trial Balance of 2022-2023 and came to conclusion that there are no avoidance transactions.
The Hon’ble NCLT Kolkata Bench, comprising of Ms. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) approving the Resolution Plan, has directed the Resolution Professional to examine the last 6 years Financial Statements, IT Returns, GST Returns, cash flow and fund flow statements in detail and place it before the CoC of the Corporate Debtor with appropriate justification and the basis for forming opinion that there were no avoidance transactions, in the form of a report. A copy of the said report also be filed with this Adjudicating Authority.