Outcome of Monitoring Committee Meeting held on 29.05.2025, for approval of 2nd Quarter and Half Year Ended 30.09.2020 Unaudited Standalone & Consolidated Financial Results with Limited Review Report.
Awaiting price reaction for this filing.
The Monitoring Committee of Birla Cotsyn (India) Ltd, a company that has been under liquidation since September 2019, approved a bulk set of pending financial results spanning FY2018-19 through FY2024-25, including the Q2 and Half Year ended 30.09.2020 results. For Q2 FY21, Revenue from Operations was NIL, while Total Income was Rs. 111.63 lakhs (down from Rs. 758.39 lakhs in H1 FY20). Standalone loss before tax narrowed sharply to Rs. (147.56) lakhs in Q2 FY21 and Rs. (329.20) lakhs for H1 FY21, compared with Rs. (9,883.40) lakhs in H1 FY20, mainly because finance costs fell to zero. The committee also approved the NCLT's Composite Scheme of Compromise and Arrangement (pronounced on 09.01.2025) and decided to prepare accounts on a going concern basis. Additionally, it approved a Rs. 3 crore working capital infusion and will move NCLT against demands raised by MIDC, NSDL, CDSL and BSE for the CIRP/liquidation period.
The NCLT-approved compromise scheme marks a potential revival path, shifting financials to a going concern basis from liquidation, which is positive for the stock. However, shareholders face material risk as standalone equity remains deeply negative at Rs. (39,161.57) lakhs and the scheme of compromise typically involves significant dilution or write-down for existing equity holders.