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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 statement was turned down by outside auditor, Samjong KPMG, as its liabilities exceeded the working capital by 111.8 per cent as of the end of last year.
“If it fails to iron out an investment deal by the end of the month, it could be delisted from the country’s main stock market,” said a report from South Korean media.
SYMC had filed an application before the bankruptcy court for the commencement of rehabilitation proceedings on December 21, 2020. M&M had said in February that it is preparing documents and plans to submit a pre-packaged rehabilitation plan with equity investment from an investor and debt from local lenders.
In December 2020, M&M had informed the bourses that SYMC has missed repayments of loans aggregating to 60 billion Korean won. “In the next few days, we would know whether the investor would sign up or not,” Pawan Goenka, MD and CEO of Mahindra & Mahindra, had recently told BusinessLine .
M&M took a one-time impairment charge of ₹564 crore in the third quarter as it decided to cease considering SYMC a subsidiary after failing to sell a majority stake in the Korean firm by February 28.
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