RCI Industries Postpones Financial Results Amid Post-Insolvency Transition

RCI Industries and Technologies Limited, a company recently emerged from Corporate Insolvency Resolution Process (CIRP), has announced a delay in the release of its financial results for the quarters ending June 30 and September 30. This postponement comes as the company navigates through its post-resolution phase under the supervision of a newly formed Monitoring Committee.

Delay in Financial Reporting

The company had scheduled a Monitoring Committee meeting to review and approve the financial results, but has had to postpone this meeting. The delay is attributed to a request from the Successful Resolution Applicant (SRA), highlighting the complexities involved in the post-CIRP transition process.

Key Points of the Delay

Preparation Status: Despite the delay, RCI Industries has confirmed that the financial results for both quarters have been prepared and reviewed by the statutory auditor.
Pending Approval: The release of these results is pending formal approval from the Monitoring Committee.
Transition Phase: The company is currently in a crucial phase following the approval of its Resolution Plan by the National Company Law Tribunal (NCLT).

Corporate Governance Measures

In light of the ongoing transition, RCI Industries has taken several corporate governance steps:

Measure	Details
Monitoring Committee Formation	Constituted to oversee the effective implementation of the Resolution Plan
Committee Leadership	Mr. Brijesh Singh Bhadauriya, the erstwhile Resolution Professional, elected as Chairman of the Monitoring Committee
Auditor Reappointment	M/s R. Bansal & Co., Chartered Accountants, reappointed for a five-year term

Looking Ahead

RCI Industries has stated that it will reconvene the Monitoring Committee meeting shortly to consider and discuss the financial results. The company has also expressed its commitment to publishing the results immediately after receiving the necessary approvals.

This situation underscores the challenges companies face during the post-insolvency resolution period, particularly in maintaining timely financial reporting while adapting to new governance structures.

Investors and stakeholders are advised to stay tuned for further updates as RCI Industries works through this transitional phase.

RCI Industries and Technologies Ltd has successfully completed a major corporate restructuring following the National Company Law Tribunal's (NCLT) approval of JTL Industries Limited's ₹66.50 crore resolution plan. The company has now implemented significant changes to its shareholding structure and governance framework.

NCLT Resolution Plan Implementation

The NCLT approved JTL Industries' comprehensive resolution plan for RCI Industries, marking the successful completion of the Corporate Insolvency Resolution Process (CIRP). The Committee of Creditors (CoC) had overwhelmingly approved the plan with a 98.05% voting share, paving the way for the company's rehabilitation.

Resolution Plan Details	Amount (₹ Crore)
Total Investment by JTL Industries	66.50
Payment to Secured Financial Creditors	44.15
Admitted Claims of Secured Creditors	268.47
CoC Approval Rating	98.05%

Major Corporate Restructuring

RCI Industries' Board of Directors approved significant corporate actions to implement the NCLT-approved resolution plan. The restructuring involved comprehensive changes to the company's equity structure and management framework.

Shareholding Pattern Changes

The company executed a major restructuring of its shareholding pattern, involving cancellation of existing promoter holdings and reduction of public shareholding:

Shareholder Category	Pre-CIRP Shares	Post-CIRP Shares	Voting Share (%)
Former Promoters	1,07,04,615	0	0%
Existing Public Shareholders	49,71,800	5,26,315	5%
JTL Industries (New Promoter)	0	1,00,00,000	95%
Total	1,56,76,415	1,05,26,315	100%

Preferential Share Allotment

JTL Industries received an allotment of 1 crore equity shares of face value ₹10 each, totaling ₹10 crore, issued at par on a preferential basis. This allotment was made in consideration of funds infused by JTL Industries as per the NCLT order.

Implementation Framework

The resolution plan includes robust governance and monitoring mechanisms to ensure successful implementation:

Monitoring Committee: A three-member committee comprising representatives from JTL Industries, the CoC, and the Resolution Professional
New Board Formation: JTL Industries appointed a new Board of Directors within 60 days of the plan's effective date
Registered Office Change: The company relocated its registered office to 1/10-B, First Floor, MPL No-VIII/3428, Munshi Niketan Building, Asaf Ali Road, New Delhi-110002

Strategic and Financial Impact

The resolution plan addresses the company's financial obligations while providing a pathway for business revival. JTL Industries, established in 1991 with four manufacturing facilities and 9,36,000 MTPA capacity, views this acquisition as strategic diversification to mitigate business risks.

Creditor Category	Admitted Claims (₹ Crore)	Proposed Payment (₹ Crore)
Secured Financial Creditors	268.47	44.15
Statutory Authorities	84.95	0.13
Workmen	0.45	0.45
Employees	0.14	0.14
Operational Creditors (Others)	21.61	0.25

The successful implementation of this resolution plan marks RCI Industries' emergence from the Corporate Insolvency Resolution Process, setting the foundation for its operational revival under new management. The company has corrected minor clerical errors in its initial filings and completed all regulatory compliance requirements as mandated by the NCLT order.