Zicom Electronic Security Systems Ltd

Key developments

• NCLT Mumbai Bench approves resolution plan under IBC for the corporate debtor.
• Interim Resolution Professional replaced by a new Resolution Professional to oversee CIRP.
• Resolution Plan approved by Committee of Creditors after voting; e-voting conducted.
• Dissenting financial creditors to receive at least liquidation-value under the plan.
• Plan distribution framework contemplates a waterfall approach between secured and unsecured creditors.
• Amendments to IBC not applicable as plan was approved before the amendment date.
• Resolution Professional to determine entitlements for each creditor per waterfall, subject to minimum liquidation value.
• Plan contemplates implementation by the successful Resolution Applicant.

Resolution plan approval

• NCLT Mumbai Bench approves CIRP resolution plan under IBC.
• Resolution Plan approved by Committee of Creditors with majority support.
• Plan prioritizes CIRP costs and operational creditors in payment waterfall.
• Governance changes include board reconstitution and appointment of CEO/CFO.
• Plan addresses brand-related litigation and continuation of equity listing, with compensation mechanism.

Implementation framework and funding

• Monitoring Committee to supervise plan implementation; includes RP, secured creditor representative, and applicant.
• Resolution Applicant provided performance guarantee and arranged additional funding; plan includes asset monetization.
• NSDC claim treatment clarified; NSDC included in financial creditor pool per addendum.
• Plan requires regulatory approvals; moratorium to cease upon approval.
• RP to file status updates and ensure compliance with IBC obligations.
• Admitted claims and realizable amounts summarized in plan approvals.

Resolution Plan Approval

• NCLT Mumbai Bench-I approves the CIRP resolution plan for the company.
• Successful Resolution Applicant: Advaita Trading Private Limited.
• Resolution Professional: Chirag Shah (IP-IPA-001/2018-19/11837).
• Tribunal: National Company Law Tribunal, Mumbai Bench-I.
• Plan approval enables implementation under CIRP and potential ownership changes per the plan.
• CIRP remains in force with execution of the approved resolution plan by the successful applicant.

CIRP status

• CIRP ongoing; NCLT replaced RP on 4 Sep 2025 with Chirag Shah.
• CoC considerations include reconsideration of the resolution plan; CIRP extensions possible.

Governance / RP changes

• Chirag Rajendrakumar Shah appointed RP; powers of the Board suspended; RP acts on CoC behalf.
• CFO and Company Secretary had resigned earlier; positions remained vacant during CIRP.

Financial statements / going concern

• Audited standalone FY2025-26 results submitted; adverse opinion due to going-concern uncertainties.
• Financials prepared on going-concern basis; CIRP context casts material doubt on ability to continue.

Financial position / liabilities

• Total current borrowings Rs 120,320.89 lakh; corporate guarantees invoked Rs 129,268.37 lakh.

Claims & recoveries

• Admitted CIRP claims total Rs 129,268.37 lakh; National Skill Development Corporation claim Rs 2,069.96 lakh; recovery uncertain.

Assets / valuations

• Fresh asset revaluation by Registered Valuer; final values not disclosed until resolution plan finalised.

Regulatory / compliance

• Note 47 cites SEBI LODR non-compliance; CFO/CS vacancies; AGM not held; CIRP moratorium ongoing.

Resolution plan status

• Second-round resolution plan was approved by CoC; directed for reconsideration; status remains unresolved.

Status & Governance

• CIRP ongoing; Chirag Shah appointed RP by NCLT on 4 Sep 2025, replacing prior RP.
• CoC meetings in 2025 approved replacement RP and ongoing oversight by RP.

Resolution Plan & NCLT Actions

• Resolution plan approved by CoC; filed with NCLT; pronouncement reserved for May 16, 2024.
• NCLT pronouncement on June 3, 2025; directed CoC to reconsider aspects.

Financials & Going Concern

• FY2024-25 standalone statements submitted; adverse opinion due to going-concern and related issues.
• Going concern note cites material uncertainty; CIRP extended by 1,039 days; expiry approaching.
• CFO and Company Secretary resigned in 2021-22; operations managed by RP.

Claims & Creditors

• Total admitted CIRP claims around INR 12,719.84 crore; unsecured creditors dominate.
• Willful defaulter status for IDBI Bank; default amount around INR 47,052.41 lakh.

Assets & Legal Matters

• Registered Valuer revalued CIRP assets; final values withheld until resolution plan finalised.

CIRP status & governance

• CIRP ongoing; Chirag Shah appointed as RP, confirmed by NCLT on 4 Sep 2025.
• Second-round resolution plan approved by CoC; sent back for reconsideration by order in 2025.
• Maximum CIRP period nearing; 1,039 days excluded; 330-day limit approaching.
• 40th CoC meeting on 17 Nov 2025 and 4th on 1 Dec 2025 discussed key matters.

Financials & creditor status

• Audited FY2023-24 standalone statements submitted; auditor issued adverse opinion.
• Material going-concern uncertainty noted; CIRP ongoing; outcome dependent on CoC resolution.
• Total admitted CIRP claims ~ Rs 1,27,198.41 Lakhs; secured and unsecured portions.
• Willful defaulter status declared by IDBI and others; large default amounts.
• Brand transfer dispute with ZSPL; Rs 2,209.96 Lakhs paid; arbitration pending.
• Auditors note internal control weaknesses; disclaimer on internal financial controls.

Current CIRP status

• CIRP ongoing; NCLT replaced RP with Chirag Shah on 04 Sep 2025.
• 37th CoC meeting (02-Jul-2025) approved replacement of RP.
• New RP took over management and operations on 04 Sep 2025.
• Maximum CIRP period extended; 1,039 days excluded; base period nearing expiry.
• CFO and Company Secretary resigned earlier; positions vacant under CIRP.

Financials & governance

• Auditors adverse opinion on FY2023 Ind AS financial statements.
• Going concern uncertain due to CIRP and huge losses eroding net worth.
• FY2022-23 loss reported as INR 10,813.16 million.
• Total admitted CIRP claims around INR 12,719.84 million across lenders.
• Corporate guarantees invoked totaling INR 79,727.09 lakhs.

Proceedings and dates

• NCLT Mumbai delivered order on 02.07.2026 in IA/1566/2026 (IDBI Bank v. Zicom).
• IA(PLAN)/32/2026 and IA/1566/2026 listed for further consideration on 17.07.2026.