TaxTMI 
TaxTMI 
2018 (1) TMI 1501
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....ment of CIRP Publication of Advertisement in the Newspaper on 02nd June 2017 inviting "Expression of Interest for submitting Resolution Plan", constituting 'Committee of Creditors' ( in short COC ) by holding Meeting on 24.06-2017, appointment of Valuers etc. The Committee of Creditors were informed about the particulars of the Corporate Debtor as prescribed under Regulation 36 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016. A second Meeting was held on 10.07.2017 attended by some Creditors. 3. Thereafter, in response to the Advertisement calling for "Expression of Interest", only one Resolution Plan was received, submitted by M/S. Tarini Steel through Mr. Santosh Agamal, one of the Directors of the Corporate Debtor. 4. The Resolution Plan was considered in a Meeting of Committee of Creditors held on 05.10.2017 and stated to be approved by voting share of 96.54% in terms of section 30(4) of The Code, read with Regulations 39(3) of Regulations 2016. The Committee of Creditors envisaged restructuring of Unsecured Term Debt to be paid up to 15% to the Unsecured Creditors by fixing cut-off date as well. For the sake of completeness, we ha....
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....ether any Order of debarment, etc. As informed by the Learned Representative, all these aspects have been considered by the Committee of Creditors and thereafter approved the Plan. 10. OBSERVATION BEFORE APPROVAL On careful reading cf the Resolution Plan this Bench is of the view that a modification is required. However, before directing to modify the Resolution Plan, we have to examine a legal aspect that whether AA has authority to incorporate any suggestion in a Resolution Plan, already approved by the Committee of Creditors? To answer this question we have examined the language of section 31 of The Code, which reads as under :- "31. Approval of resolution plan. - (1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. (2) (3) emphasis supplied ) 11. The Procedure as prescribed unde....
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....rpretation the recording of an analytical 'satisfaction' is a condition precedent before granting of approval. 12. Keeping this settled principle in mind, we have noted that upon calling for "expression of interest" only one Applicant came forward and submitted the Resolution Plan. The Resolution Plan for our consideration is Resolution Applicant viz. M/S. Tarini Steel Limited. The Plan envisages infusion of fresh Funds by the existing Promoters. Through a Statement an Undertaking is annexed that interest of all stakeholders, including financial Creditors and Operational Creditors shall be dealt with. 12.1 In our view in this Plan there is inconsistency that under the Heading "Assumption" as per Clause it is noted that, quote "New Promoters Deposit to the extent ofe2 crores to be allowed to be convened into Equity Shares by Financial Year 2022-23." However, under the Head "Conclusion" as per Clause V under the Head "Promoters' Loan" it is proposed, quote "the fresh Unsecured Loans of Rs. 350 lakhs to be infused by the Promoters under the Resolution Plan shall be repayable during 2021-23. " In addition to these two observations, interestingly and in contrast,....
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....subject to the modifications suggested hereinabove which is binding on the Corporate Debtor and other stakeholders involved in this Resolution Plan so that revival of the Debtor Company shall come into force with immediate effect and the "Morotorium" imposed under section 14 shall cease to have any effect henceforth. The Resolution Professional shall submit the records collected during the commencement of the Proceedings to the Insolvency & Bankruptcy Board of India for their record and also return to the Resolution Applicant. Certified copy of this Order be issued on demand to the concerned parties, upon due compliance. ============= Document 1Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/gif"]: IndentationError: expected an indented block after 'if' statement on line 341 Document 2 70 8.0 REASONS FOR NON-ACHIEVEMENT OF PROJECTIONS IN THE SAN....
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.... after adjusting any outstanding amounts receivable from them, in fuil & final settlement. PROMOTERS CONTRIBUTION The resolution applicant to infuse additional Rs.34951 lacs for financing the resolution plan as under (Rs lacs) Capital Expenditure 205.00 lacs Creditors payment 65.25 lacs Fixed Deposit Holder: 72.00 lacs Resolution Cost 7.26 lacs TOTAL 349.51 lacs AXIS BANK LTD Axis Bank to agree to provide further credit facility of Rs.400 lacs for working capital along with existing working capital lamit of Rs 368 Lacs, ie. total working capital finance from Axis Bank to be availed for Rs. 768 Lacs @ 12% pa.. Out of the total Rs 768 lacs working capital finance, Rs. 568 lacs to be provided as working capital term loan (CTL) telach will be repayable in 5 years with 6-month montorion period from the date of sanction of the resolution plan MINISTRY OF CORPORATE AFFAIRS GOVERNMENT OF INDIA/ROCTo exempt the company's providing financial assistance / corporate grantee to the corponite debtor under flae resolution plan fro applicability of section 185 of the Companies Act, 2013. Exemption from the applicability of ....
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.... increased margin, greater production, greater customer acceptability, resulting into lugher revenue. The financial projections are groen in Annexure appended herewith The key financial ratios are groen hereunder PARTICULARS 2018 2019 2020 2021 Asset Coverage Ratio 0.67 0.68 0.73 0.81 (a) Gross Working Capital 1.552.65 1,786.25 196437 2.058.53 a) Net Working Capital 1,055.15 1.210.89 1.327,88 1,448.33 (i) incremental Working Capital 155.74 116.98 12045 Working Capital Margin 155.74 116.98 120 45 (e) Capital Gearing Ratio -32% -31% -26% -18% foi Debt-Equity Ratio -3.08 -3.26 -3.90 -5.59 Co Rate Of Return On Investment -8% 3% 7% 10% (x) Payback Period NA 6) Debt Service Coverage Ratio 2.81 1.73 146 153 (x) Capital Employed 1.413.93 1.450.53 1.556.78 1,698.49 13.0 The plan is expected to work itself out m 2018-19 when the corporate debtor's liabilities are to get repaid except promoters lours & the deployed working capital which remains in the system, as at the end of the said year. WHETHER REDUCTIO....
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.... It is proposed that a Committee of Directors will be constituted to supervise and monitor the due and timely mplementation of the resolution plan COMPUTATION OF LIQUIDATION VALUE OF THE ASSETS OF THE COMPANY 20.0 The computation of the liquidation value of the assets is as under Value of fixed assets/properties as per valuation report (Rs in Crores) Fair Market Distress Sale Realisable Value Valve Value M&M Associates (16.6.17) 15.68 12.54 14.11 2 Krishnakant A Pandat (12.6.17) 16.22 12.98 14.60 Average Value 15.95 1276 14.15 Stocks Value (Rs 1 Crores) Present Value 1. M&M Associates (16.6.17) 2 Krishikant A. Pandat (11.6.17) 604 Liquidation Value 1.81 6.08 1.83 Average Value 6.06 1.82 For the purpose of calculation of liquidation value payable to operational creditors, the distress tive is considered as in case of liquidation funds are required to be raised expeditiously and in a time-bound manner ASSETS AVAILABLE FOR REALISATION DISTRESS VALUE OF FIXED ASSETS Less: 25% towards the cost of sale. capital gain tax stamp duty, GST etc REALIZABLE VALUE OF CURRENT....
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.... etc. to be continued to be applicable E. Presently there is no outstanding statutory liability however, if any contingent liability arises or crystalised in near future with respect to pest debts, then the same is to be settled at 15% of its crystalised principal amount. CONCLUSION: 21.0 It will be observed from the financial projections that the company will be able to resolve and pay up all its dues/debts other than dues / debts payable to its promoters and revolving trade creditors. Thus, the resolution plan is workable and worthy of support Further it is certified that the contents of the Resolution Plan meet all the requirements of the late as also the regulations and nothing contained therein contravenes the same and the Resolution Plan has been approved by the committee of creditors. 220 A STATEMENT SHOWING AS TO HOW RESOLUTION PLAN HAS DEALT WITH THE INTEREST OF ALL STAKEHOLDERS, INCLUDING FINANCIAL CREDITORS AND OPERATIONAL CREDITORS. OF THE CORPORATE DEBTOR, IN CONSONANCE WITH REGULATION 38(1) OF THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (INSOLVENCY RESOLUTION PROCESS FOR CORPORATE PERSONS) (SECOND AMENDMENT) REGULATI....