PC Jewellers-Why noise of NPA when the account was NPA in FY 2021-22 itself

PC Jewellers announced that it made default of RS 3470 crore on 27.10.2022. Market was skeptical about banks actively involved in this Company. Lets starts the real analysis through some interesting fact and data. While analyzing the report of PC Jewellers we came through following observations:

Observation:

In page No 60 of Annual Report of FY 2021-22:

It is clear from the Auditors remark that the Company has defaulted in repayment of loans (including interest) to its Bankers in respect of Rs 3278.40 Crores as on 31 March 2022.

The security against exposure is provided as under:

Conclusion

While the stock of this company acted like a meme stock but none of the authorities acted vigilantly on this issue. The account is declared NPA itself in FY 2021-22 then why today analyst concentrated on this issue. Why Company failed in filing this issue till date? Why Bankers were sleeping on this issue?

The company earlier made limelight when they gifted equity shares to relatives of more than 100 crores. At that time also no action was taken. We end up our blog by sharing 10 years chart. Rest can only say why statutory organisations are sleeping in such issues and how many companies are available with such issue. Will company be investigated seriously or it will be same moment like Malaya or Nirav Modi or Choksi?

In case you are interested in making a contribution to our writing, please do so in the following account:

Account Number: 00000037522669317

IFSC Code: SBIN0030115

YN Road Branch, Indore,India in the name of Rashi Maheshwari

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