SsangYong Motor Co, majority owned by Mahindra & Mahindra, has been blacklisted after its financial statements for 2020 were rejected by the independent auditor.
According to sources, SsangYong Motor’s financial statements were rejected by the external auditor, Samjong KPMG, because its liabilities exceeded working capital by 111.8% at the end of last year.
“If he fails to secure an investment deal by the end of the month, he could be delisted from the country’s main stock exchange,” a South Korean media report said.
SYMC had filed an application in bankruptcy court to initiate pardon proceedings on December 21, 2020. M&M said in February that it was preparing documents and planned to submit a pre-packaged pardon plan with a plug. participation of an investor and a debt of local lenders.
In December 2020, M&M informed stock exchanges that SYMC had failed to repay loans totaling 60 billion Korean won. “In the next few days, we would know whether the investor would sign up or not,” said Pawan Goenka, Managing Director and CEO of Mahindra & Mahindra recently. Activity area.
M&M took a one-time depreciation charge of 564 crore in the third quarter as it decided to stop treating SYMC as a subsidiary after failing to sell a controlling stake in the Korean company by February 28.