Williamson Magor & Co defaults on cost of ₹164.78 crore in the direction of reimbursement of mortgage amenities

Williamson Magor & Co, an funding arm and one of many holding corporations of Khaitan family-led Williamson Magor group, defaulted on the cost of Rs 164.78 crore in the direction of reimbursement of principal and curiosity on mortgage amenities from banks and monetary establishments for the fourth quarter final fiscal.

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In a inventory change submitting, the Kolkata-based firm stated whole monetary indebtedness of the entity, together with short-term and long-term debt, stood at Rs 513.67 crore as on March 31, 2024.

Based on the corporate’s annual report for FY23, lenders are HDFC Financial institution, ICICI Financial institution and Punjab Nationwide Financial institution, amongst others. 

Considerably, the corporate had additionally defaulted in reimbursement of principal and curiosity on loans to the lenders for the third quarter of FY24.

After saying the third quarter outcomes on February 7, Williamson Magor & Co stated, “Throughout the quarter ended December 31, 2023, the corporate’s monetary efficiency has been adversely affected as a result of exterior components past the management of the corporate and a destructive internet price as a result of classification of loans and advances as non-performing belongings. The corporate has defaulted in reimbursement of principal and curiosity on loans to the lenders and others and the liquidity points confronted by the corporate are being mentioned with them.”

The corporate stated it was in dispute with its secured lenders, specifically HDFC Financial institution and Incred Monetary Providers (previously KKR Monetary Providers), and accordingly, its board of administrators had determined to not acknowledge curiosity on such borrowings for the third quarter final fiscal as the identical was unascertainable at current.

It reported a internet lack of round Rs 15 crore on a consolidated foundation for Q3FY24, in opposition to a internet revenue of Rs 20 crore for Q3FY23. Its income from operations throughout the third quarter of final fiscal fell to Rs 52.54 lakh from Rs 12.30 crore for the corresponding interval earlier fiscal.

The auditors raised questions concerning the firm’s potential to proceed as a going concern.

Notably, financially confused Williamson Magor group had misplaced management of Eveready, the nation’s largest dry cell battery maker, two years in the past.

In July 2022, the Burman household, promoters of Dabur India, reclassified itself because the promoters of Eveready Industries, changing Khaitans.

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Furthermore, the Nationwide Firm Legislation Tribunal (NCLT) had final yr authorized a decision plan of BTL EPC, the engineering division of Kolkata-based Shrachi Group, to amass debt-ridden McNally Bharat Engineering, which was an engineering agency of the Williamson Magor group.