Proxy advisory firm Institutional Investor Advisory Services (IiAS) has recommended that S Kumars Nationwide's (SKNL) lenders step in and provide direction to the company.
A group of shareholders, cumulatively holding 21% of S Kumars, has called for an EGM on April 27 to vote for removal of the entire board, including the promoter, and installing a new board.
The firm has asked banks to either appoint a management that will pull the company out of its performance woes, or have it sold. Alternatively, they must enforce personal guarantees and file for winding-up.
In a note to investors, IiAS said SKNL is a leaderless company as lenders have withdrawn their board nominees, whereas institutional shareholders have exited the stock, leaving retail shareholders to hold the baby. Banks have lent over R4,500 crore to the consolidated entity that later turned into an NPA. "The promoter has no skin in the game, but continues to call the shots," stated the report.
In July 2013, FE had reported that a 12-bank consortium to SKNL had filed a claim under the Sarfaesi Act to recover R3,000 crore in overdue loans.
In May 2013, UCO Bank had issued a newspaper notice with promoter & MD, Kasliwal's picture, warning the public against dealing with the company's director, who it termed a defaulter.
For the quarter ended June 2014 (latest available data), S Kumars reported a net loss of R209 crore compared with a loss of R62 crore in the same quarter last year. Revenue dropped 36% drop to R544.18 crore in Q1FY15.
For Updates Check Business News; follow us on Facebook and Twitter
First Published on April 17, 2015 12:15 am
Please Wait while comments are loading...
via Business - Google News http://ift.tt/1OIqcHT
Put the internet to work for you.
0 comments:
Post a Comment