Jaypee Infratech defers approval of financial statements for March 2023 quarter

Jaypee Infratech, which is facing insolvency proceedings, on Monday said the company has deferred the approval of financial statements for the quarter and fiscal ended March 2023, as it has not been finalised in view of pending cases in the appellate tribunal. On March 7, the National Company Law Tribunal (NCLT) approved the resolution plan of Mumbai-based realty firm Suraksha Group to take over Jaypee Infratech. An Implementation and Monitoring Committee (IMC) has been set up for taking all necessary steps for expeditious implementation of the resolution plan.

In a regulatory filing, Jaypee Infratech informed that the meeting of the IMC was held on Monday, "wherein the approval of the financial statements of the company was deferred/postponed for seeking an extension by way of making necessary application...". "We would like to submit that, for finalisation of accounts and to capture the effects of the accounting treatment in the books of accounts of the company, few accounting entries are required to be made and effects of the plan (resolution plan) to be given in the financial statements," the company said.

In view of the pending appeals in the National Company Law Appellate Tribunal (NCLAT), the company said the statutory due date should be extended to give a proper effect of the accounting entries in the books for presenting a true and fair view of the financial performance.

Jaypee Infratech is unable to finalise its annual accounts for FY 2022-2023 on account of the pending Appeals, which are factors beyond its control, it added.
The company went into insolvency in September 2017.

In the fourth round of the bidding process to find a buyer for Jaypee Infratech in 2021, the Suraksha group won the bid with 98.66 per cent votes. As many as 12 banks and more than 20,000 homebuyers have voting rights in the CoC. The company had got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.

In the first round of insolvency proceedings in 2018, the Rs 7,350-crore bid of Lakshadweep, part of the Suraksha group, was rejected by the lenders. The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019. In November 2019, the Supreme Court directed that the revised bids be invited only from NBCC and Suraksha.

Then, in December 2019, the CoC approved the resolution plan of NBCC during the third round of the bidding process. In March 2020, NBCC got approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court. On March 21, 2021, the apex court ordered a fresh round of bidding between NBCC and Suraksha Group only.

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