Punj Lloyd Liquidator Approaches NFRA Against Auditors For Non-Cooperation

The liquidator of debt-ridden engineering, procurement, and construction company Punj Lloyd has approached the National Financial Reporting Authority (NFRA) against the company's auditors for failing to cooperate in finalizing the audited results since FY19.

Complaint Against Statutory Auditors

The liquidator filed a complaint with NFRA against the statutory auditors of the company, BGJC & Associates LLP, for non-cooperation in finalizing the audited results since the financial year 2018-2019. The company made this disclosure in a regulatory filing.

Punj Lloyd's Liquidation Process

Currently, Punj Lloyd is undergoing the process of liquidation. Last year in June, the National Company Law Tribunal (NCLT) ordered the initiation of liquidation after the company's lenders failed to find a buyer and rejected the revival plan submitted by a consortium of Prudent ARC and Payard Investments.

Failed Auction Attempts

In August, the liquidator's efforts to attract buyers in the second round of e-auctions proved unsuccessful. The second round was conducted based on the directions of the NCLT at a reserved price of Rs 1,061 crore on a going concern basis, as per a regulatory filing by the company secretary. Similarly, in July, the first round of e-auctions also failed to attract any buyers, despite setting a reserve price of Rs 1,061 crore.

Corporate Insolvency Resolution Process

In 2019, a corporate insolvency resolution process was initiated against Punj Lloyd based on a plea filed by private sector lender ICICI Bank. The company's failure to attract buyers in multiple rounds of e-auctions reflects the challenges in finding a suitable investor to revive the debt-ridden firm.

The latest development involving the complaint against the statutory auditors adds another layer of complexity to the ongoing liquidation process. The outcome of this complaint may have implications for the finalization of the audited results and the overall resolution of the company's financial situation.