Delay in Q1 results due to insolvency proceedings consolidation: Videocon

Videocon Industries said on Monday it is unable to publish its financial results for the quarter ended June 30 due to the ongoing consolidation of insolvency proceedings of it along with other 12 group firms.

In a regulatory filing, the company said filing of the quarterly results have been delayed due to the complexity involved in the consolidation of corporate insolvency resolution process (CIRP) the 13 group companies as directed by the Mumbai bench of National Company Law Tribunal (NCLT).

The NCLT had approved appointment of Mahendra Khandelwal as Insolvency Resolution Professional (IRP) and accordingly, the control of the management and operations of 13 entities, including the company stands vested with him in terms of the provisions of the Insolvency and Bankruptcy Code (IBC), Videocon Industries said in a BSE filing.

Accordingly, Khandelwal is in the process of taking over the CIRP of all 13 Videocon group companies, it added.

The company has not yet disseminated the annual audited financial results for the Financial Year ended March 31, 2019 and also for the quarter ended on the same date, it said.

In view of the complexities of the consolidation, including takeover of CIRP from erstwhile Resolution Professionals, Insolvency Resolution Professional will require reasonable time to consider, review and disseminate both the standalone and consolidated annual audited financial results for the financial year ended March 31, 2019, and also for the quarter ended on the same date, it added.

"As such, on this background, unless the annual audited financial results of the company for the financial year ended March 31, 2019, and for the quarter ended on the same date are published, the company will not be in position to prepare and disseminate the financial results for the quarter ended June, 30, 2019," it said.

On August 8, NCLT Mumbai had given the nod to consolidate the insolvency proceedings of the 13 entities of Videocon group, including Videocon Industries and Videocon Telecommunications.

The Venugopal Dhoot-promoted Videocon Group owes over Rs 90,000 crore to various public and private sector banks.