New Delhi: Debt-ridden Bhushan Steel, which has been acquired by Tata Steel under the insolvency process, has sought 90 days extension to file its audited financial results for the quarter and year ended March 31, 2018.
Tata Steel, which won the bid for Bhushan Steel Ltd (BSL), completed the acquisition of controlling stake of 72.65 per cent in the debt-laden firm last week. As per regulatory norms, the company is under obligation to submit its audited financial results for quarter and year ended March 31, 2018 within 60 days from the end of the financial year, that is by May 30,2018.
"Pursuant to the approved resolution plan, the entire existing board of the company was deemed to have resigned and vacated their office with effect from 18.05.2018 and the new board has been constituted with 5 directors, and key managerial personnel have been appointed to manage the affairs of the company," Bhushan Steel said in a BSE filing.
Bhushan Steel said since the new management and directors have to review and sign the audited financial results, it is imperative that the same is done after due review, revalidation and ensuring that true and fair disclosures are being made. It further said the effect of the resolution plan on the accounts of the company for the year ended March as well as the consolidated accounts needs to be carefully understood.
"It is herein requested that the new management of the company should be given additional time of 90 days to file its audited financial results (standalone and consolidated) for the quarter and year ended March 31, 2018," Bhushan Steel said said.
Rajeev Singhal has become the new managing director of Bhushan Steel. Its new board comprises a managing director, one independent director and three non-executive directors. Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes Rs 44,478 crore to its lenders.