observations in respect of the stock and audit report dated 30.05.2023. In the letter dated 02.08.2023, it was pointed out that the stock of Rs.0.59 Crore was lying at the port for more than one year. Further, out of the total domestic debtors of Rs.16.12 Crore, debtors amounting to Rs.12.55 Crore were beyond cover period. Further, on 28.03.2023, the unit had a stock of 20.43 Crore while it was insured for Rs.15.00 Crore only. Further, the sales of the firm had declined by 50% during the financial year 2023. Though, the applicant has alleged that its case was not put up before the designated committee, yet, the bank has produced on the record the report of the designated committee dated 17.08.2023. The designated committee in its meeting dated 17.08.2023 has considered the case of the applicant for restructuring. In the minutes of meeting dated 17.08.2023 the designated committee found that during the financial year 2022-2023, the firm started facing stress in export sales as import license of M/s Greenball Corporation, one of the biggest customers of the firm, was revoked by the USA Customs Department. The committee also noticed that the tyres which were manufactured by the applicant were meant for US markets and the firm was not able to sell it in domestic and other markets. The decline in export sales resulted in mismatch in cash flow. Accordingly, credit facilities were downgraded to substandard category by statutory auditor with effect from 30.06.2022. The committee also noted that on 20.06.2023 the applicant had made a request for restructuring. The committee also noted that an audit was conducted on 30.05.2023 and the stock auditor recalculated the DP at Rs.13.06 Crore against the outstanding of Rs.15.81 Crore as on 28.03.2023 with shortfall of Rs.2.75 Crores. The promoters were advised about the shortfall in the drawing power and other observations of stock auditors to regularize the account. The committee also noted that there were many meetings between the parties and the applicant were advised to infuse additional capital or bring in additional partner to improve the financial position of the firm. However, the firm expressed its inability to fully regularize the account from own sources due to financial stress. Further, Mr. Nipun Jain, guarantor refused to execute the documents in relation to
