RoC submits report on Subhiksha to Corporate Affairs Ministry

The Registrar of Companies (RoC) southern region on Friday said it has submitted its report on troubled retailer Subhiksha to the Ministry of Corporate Affairs. “Our report is already given (to MCA)…From our side, everything is over. There is nothing pending from us. Now, the ball is in Ministry’s (of Corporate Affairs) court in Delhi,” RoC Regional Director B K Bansal told reporters here.

 

He, however, did not elaborate on what has been the finding of the RoC after studying the books of the debt ridden retailer. Last year, RoC had started investigations into the financials of Subhiksha Trading Services following complaints by ICICI Venture, which has an exposure of around Rs 106 crore in the retail company.

 

The investor had asked the Chennai RoC to conduct an investigation into the affairs of Subhiksha from April 2007 onwards. ICICI Venture had charged the management of the retail chain with keeping its investors in dark on financial matters of the company.

 

Subhiksha’s audited accounts are available only as of April 2007, as per which it had a turnover of Rs 840 crore and profit before tax of Rs 18 crore. Besides, it also had inventories of Rs 279 crore and secured loans of Rs 245 crore.

 

The company had been burdened by debt of around Rs 750 crore and was undergoing a Corporate Debt Restructuring (CDR) programme. However, the CDR, which was supposed to to be completed by July 31, 2009, never materialised.