The Land of the Peninsula does not pay the loan of 177 million rupees of the SBI

MUMBAI: Peninsula Land , a company of the Ashok Piramal group, has informed the stock market that it has failed to pay a loan of Rs 177 Rs SBI. In a statement to the exchange, the company said it did not pay the principal of Rs 88 lakh and the interest of Rs 1.5 rupees on the loan. The breach took place on November 30, 2019.

According to the company's disclosure, it has loans of almost 1,000 rupees in circulation with banks and financial institutions, and the total indebtedness as of September 30, 2019 was Rs 1,630 million. The company's shares fell 1.5% to Rs 4.

Rating agency ICRA had downgraded Peninsula Land to ‘C’ on November 18, 2019. This was after the company disclosed it was facing trouble in repaying its loans.

“The company's cash flow position is severely affected due to delays in the collection of considerable sold inventory, as well as the weak sales speed in ongoing and completed projects. The company also faces a high risk of refinancing due to the considerable debt payment obligations that add up to Rs 1,167 million rupees in the next 12 months, ”said ICRA.

Compared to the budgeted cost, the company still had to spend Rs 1,198 million rupees for the completion of projects as of June 30, 2019. Of this, about 68% of the pending cost would be incurred in a single project: Salsette 27, a residential project in Byculla, Mumbai, which is in the initial stage of construction.