PTC India Financial Services (PFS) has successfully resolved a debt of ₹115.60 crore related to Vento Power Infra Private Limited through a strategic management transfer. This resolution marks a significant milestone in PFS's efforts to manage its non-performing assets (NPAs) effectively.

Key Highlights of the Transaction

Transaction Details

The debt resolution process began with PFS issuing a Letter of Intent (LoI) to Enviro Infra Engineers Limited. This LoI outlined the proposed resolution of Vento Power Infra's debt through a 'Change in Management' process.

PFS and EIE Renewables Pvt. Limited executed the definitive agreements for the transfer of management control of Vento Power Infra Private Limited. PFS confirmed that it had received the full transaction value, marking the successful closure of the deal.

Professional Support

PFS engaged top-tier advisors to facilitate this transaction:

• Transaction Advisor: Deloitte Touche Tohmatsu India LLP
• Legal Advisor: Saraf & Partners

Implications for PFS

This successful debt resolution demonstrates PFS's commitment to addressing its NPA challenges proactively. By transferring the management of Vento Power Infra to EIE Renewables, PFS has not only recovered the outstanding debt but also potentially ensured the continued operation of the asset under new management.

The resolution is expected to have a positive impact on PFS's financial health, potentially improving its asset quality and freeing up capital for new lending opportunities.

Market Information

PFS is listed on both the BSE and the National Stock Exchange of India. Investors and market participants can find more details about this transaction on the company's official website at www.ptcfinancial.com .

This strategic move by PTC India Financial Services showcases the company's ability to navigate complex debt resolution processes and its commitment to maintaining a healthy loan portfolio.

PTC India Financial Services Ltd (PFS) has been ordered to pay penalties totaling Rs 6.40 lakh following the dismissal of its appeals by the Regional Director (North), Ministry of Corporate Affairs. The penalties stem from violations during the financial year 2021-22, as confirmed in a recent disclosure to the stock exchanges.

Penalties Breakdown

The company faces three separate penalties for different violations:

1. Rs 0.70 lakh for failing to facilitate Independent Directors in seeking professional legal advice
2. Rs 0.70 lakh for delays in sharing documents with Independent Directors for legal opinion
3. Rs 5.00 lakh for failure to maintain the prescribed composition of the Nomination and Remuneration Committee

Appeal Dismissal

The Regional Director dismissed all three appeals filed by PFS against the Show Cause Notices issued by the Registrar of Companies, NCT of Delhi & Haryana.

Regulatory Violations

The violations, as per the Regional Director's orders, include:

• Breach of obligations under Section 149(8) read with Schedule IV, Para III(2) and Section 172 of the Companies Act, 2013
• Violation of Section 149(8) read with Schedule IV, Para III(2) of the Companies Act, 2013
• Non-compliance with Section 178(1) of the Companies Act, 2013 regarding the composition of the Nomination and Remuneration Committee

Financial Impact

PTC India Financial Services has stated that there is no material impact on its operations or financial position, except for the penalty amount of Rs 6.40 lakh. The company has already created provisions for this amount in its books of accounts.

Compliance Measures

While the company has not detailed specific measures to address these violations, the penalties serve as a reminder of the importance of strict adherence to regulatory requirements, particularly in areas of corporate governance and board operations.

PFS, a subsidiary of PTC India Limited, will need to ensure robust compliance mechanisms are in place to prevent similar issues in the future, especially concerning the facilitation of Independent Directors' roles and the proper constitution of key committees.