Activities to be undertaken when taking over as IRP of a Corporate Debtor For Comments

Comments/Suggestions are invited on the subject:

Activities to be undertaken when taking over as IRP of a Corporate Debtor

Suggested Checklist

  1. Awareness Stage (Indicative List):

    1. Details of the operations of the DC to be obtained from the Corporate’s Website and Annual Accounts. The objective would be to ascertain the Geographical spread of operating locations, Principal products/services, Financial strengths/weaknesses, Contingent liabilities, Diversion of funds – Internal/External, Directors Report, Auditor’s notes and observations, Tax Audit report, etc.

    2. The details of Directors, CIBIL rating, linkages with other group/external companies using DIN, defaulter status, etc. largely available on MCA site (Master Data), Secretarial Audit report, if applicable.

    3. Pending compliances – Secretarial Audit report, if available

    4. CERSAI details, RBI’s List of Defaulters, Non-Encumbrance details, Search Reports from ROC, Credit rating of any Debt/Equity flotation, etc.

    5. List of Banks/FIs/NBFCs, including non-lending entities for deposits or other services.

    6. Contribution of Export/Import operations to turnover and profits, FIEO/APEDA details, if applicable.

    7. Labour Commissioner for any Industrial Disputes

    8. Other information available on Public Domain.

  2. Assessment Stage (Indicative List):

    1. External/Internal Operating environment of the CD

    2. Any special legal or environmental requirements

    3. Availability of or immediate access to industry experts, if required

    4. Short list of suitable Valuers

    5. List of Newspapers and their agents for publication of Notifications.

    6. Contact list of FCs or key OCs – where action is initiated by them.

    7. Understanding of NCLT/NCLAT procedures

    8. Adequate knowledge of applicable laws or availability of suitable legal support

    9. Local infrastructure for operations, if at a different location from Registered Address

    10. Gap Analysis – Resources available (with IP) v/s Required

  3. Implementation Stage (Indicative List):

    1. Checklist for adhering to timelines prescribed under IBC

    2. Checklist for all key functions

    3. Ability to prepare and manage cash-flow projections

    4. Positioning a concurrent Auditor - if required

    5. Preparing an agreement for taking up the assignment, including comprehensive cost estimates

    6. Arrange implementation of reporting mechanism for various stages as required under IBC/Regulations or as per Monitoring requirements of IPA.

    7. Integrating good corporate governance norms, adherence to Code of Conduct and avoidance of Conflict of Interest in the processes and systems followed.

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