Srei Group expects delay in Q2 results on insolvency order

The comapny on Wednesday said there may be a delay in submitting the financial results

Srei Infrastructure Finance on Wednesday said there may be a delay by the company and its subsidiary Srei Equipment Finance Ltd (SEFL) in submitting financial results for September quarter due to initiation of corporate insolvency resolution process against them.

Through an order on October 8, 2021, the National Company Law Tribunal (NCLT), Kolkata bench initiated corporate insolvency resolution process against Srei Infrastructure Finance Ltd (SIFL) and SEFL under the Insolvency and Bankruptcy Code, 2016.

On October 4, the Reserve Bank superseded the boards of SIFL and SEFL owing to governance concerns and defaults by the companies in meeting payment obligations. RBI appointed Rajneesh Sharma as the administrator of the companies (Srei Group). Sharma is a former chief general manager of Bank of Baroda.

As per regulatory norms, listed companies are required to submit their standalone and consolidated financial results to stock exchanges within 45 days of the end of a quarter, in this case, within November 14, 2021.

"However, in view of the NCLT order, we wish to inform you that there is a possibility of delay in preparation and hence finalisation of the standalone and consolidated financial results for the quarter and half-year ended on September 30, 2021," Srei said.

The company said it has made a request to capital markets regulator Sebi to allow them an additional 45 days, till December 30, 2021 to be able to finalise and submit the results.

The economic distress caused due to the pandemic created an asset-liability mismatch at Srei Group of companies, which ultimately led to the RBI taking control of the group in October.