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  1. Chennai toll project to become NPA: L&T

Chennai toll project to become NPA: L&T

Move comes after two projects were downgraded by ICRA earlier this week

By: | Mumbai | Published: September 24, 2015 12:29 AM

L&T Infrastructure Development Projects, the infrastructure arm of heavy engineering and construction major Larsen and Toubro (L&T), said on Wednesday that its L&T Chennai Tada Tollway (L&T-CTTL), one of the two projects that were downgraded by ICRA earlier this week, will technically become a non-performing asset by end of September 2015.

In an e-mail response to FE’s queries, L&T IDPL said that L&T CTTL had commenced construction in April 2009 and the scheduled completion was in September 2011. However, due to non-availability of land, construction is yet to be completed, which will result in the project turning NPA.

“The project loan will technically become a NPA by end September 2015 under the present RBI regulations. The company had issued a notice in June 2015 terminating the concession agreement on account of NHAI defaulting in terms of the concession agreement,” a company official said in an e-mail.

The response comes in after the ratings agency ICRA downgraded rating outstanding on two of L&T IDPL’s road projects on Monday. ICRA revised long term loan programmes of L&T Halol Shamlaji Tollway project (L&T-HSTL) and L&T Chennai Tada Tollway (L&T-CTTL) to [Icra] D or default.

The company, however, clarified that as the loan on the books of the two companies are non – recourse, there shall be no impact of L&T IDPL’s rating.

The official said that under the circumstances, NHAI is required to pay the termination amount as prescribed under the concession agreement which will be used to repay the lenders. “L&T CTLL has filed an application under section 9 under Arbitration and Conciliation Act, 1996 before the High Court of Delhi for protection of the asset and the interest of the lenders,” he said. Currently, L&T CTTL is operating and maintaining the project on behalf of NHAI and is using the toll collection for routine operation and maintenance expenses and meeting the debt obligations, he added.

L&T CTTL’s debt outstanding to banks stood at Rs346.40 crore as on August 31, 2015. “There had been a delay in servicing part of the interest due on the loan to the extent of Rs3.91 crore, as of August 2015, which has been paid out of toll collections in September,” he said.

As for L&T HSTL, which has been operational since April 2012, the official said that though not permitted as per terms of the State Support Agreement, an alternative route was substantially improved by Government of Gujarat, after L&T HSTL commenced construction on the project. “This resulted in significant diversion of traffic in three of the four toll plazas, which made this concession unviable without additional support from GSRDC, government of Gujarat and the lenders”.  The total outstanding loans from banks was Rs994 crore on this project as on August 31, 2015.  Out of the total dues of Rs12 crore for the month of August 2015, Rs5 crore was paid by L&T HSTL on August 31, and there was a delay in remitting the balance of around Rs7 crore, which with the support of L&T IDPL has been settled on September 16, 2015.

Meanwhile, in an addendum issued on Wednesday, rating agency ICRA also said that while it maintains its default rating on IDPL’s L&T Halol Shamlaji Tollway (L&T-HSTL) project, L&T IDPL has infused funds subsequently and currently there are no dues outstanding to the lenders.

L&T-HSTL is a special purpose vehicle incorporated in September 2008 and is a 100% subsidiary of L&T IDPL. The SPV has carried out the four-laning of 173.06 km of SH 5 from Halol to Shamlaji in Gujarat. ICRA revised the Rs 1,014.93-crore long-term loan programme of the project from [Icra]BB+ with a stable outlook to [Icra]D. ICRA also revised the long-term rating to the Rs475-crore term loans of L&T CTTL from [Icra]BBB- with a stable outlook to [Icra]D.

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  1. H
    Harry Potter
    Sep 24, 2015 at 7:24 am
    CAUTION – Big Danger Ahead - LnT top-bres on selling spree, Chairman Mr Naik sold his LnT shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results LnT plunged by 8 %, biggest intra-day decline since July 2009. Post Q2 results LnT share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Post Q3 – 2014 results another big intra-day fall of 7.44 per cent. Post Q1 – 2015 tumbled by 5 per cent in early hours trade, Q1 profit tanked 37 per cent. Average of lows of last 12 years (Jan to Dec, 2004 till 2012) is Rs 622. Average of highs of last 12 years is Rs 1124. Averages to Rs 875 apiece. LnT Halol Shamlaji Tollway defaults on Rs 1014 crore loan. Inherent malignancies – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs 5k crores stagnating investment in Defence. Aging CXO-MD potion of septuagenarians, leading the pack 73 yrs old Chairman Mr Naik completed 50 yrs with LnT as Paid Employee. Post Q2-2015 results - 6 year low of 386? Reuters: “Dhamra port rescued L&T from posting loss; Citigroup says, Q1-2014 raises multiple red flags. Sep 15 2015, L&T slips 3%; Deutsche Bank downgrades to hold, cuts target. Sep 15 2015, L&T Falls on Reports of Unit's Loan Downgrade. State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP! Sep 23 2015, LnT from all time and 3 months peak of 1879 down to 1447. Volksvagan Sahara Satyam !
    Reply
    1. H
      Harry Potter
      Sep 24, 2015 at 7:23 am
      CAUTION – Big Danger Ahead - LnT top-bres on selling spree, Chairman Mr Naik sold his LnT shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results LnT plunged by 8 %, biggest intra-day decline since July 2009. Post Q2 results LnT share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Post Q3 – 2014 results another big intra-day fall of 7.44 per cent. Post Q1 – 2015 tumbled by 5 per cent in early hours trade, Q1 profit tanked 37 per cent. Average of lows of last 12 years (Jan to Dec, 2004 till 2012) is Rs 622. Average of highs of last 12 years is Rs 1124. Averages to Rs 875 apiece. LnT Halol Shamlaji Tollway defaults on Rs 1014 crore loan. Inherent malignancies – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs 5k crores stagnating investment in Defence. Aging CXO-MD potion of septuagenarians, leading the pack 73 yrs old Chairman Mr Naik completed 50 yrs with LnT as Paid Employee. Post Q2-2015 results - 6 year low of 386? Reuters: “Dhamra port rescued L&T from posting loss; Citigroup says, Q1-2014 raises multiple red flags. Sep 15 2015, L&T slips 3%; Deutsche Bank downgrades to hold, cuts target. Sep 15 2015, L&T Falls on Reports of Unit's Loan Downgrade. State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP! Sep 23 2015, LnT from all time and 3 months peak of 1879 down to 1447. Volksvagan Sahara Styam !
      Reply
      1. H
        Harry Potter
        Sep 24, 2015 at 7:25 am
        To quote Mr Naik "there is no bloody owner at L&T". Its not just Mr Naik L&T is personal fiefdom of a old-men club, it is divided between septuagenarians vertical wise. CEO Mr Vekataramanan responsible for Hydrocarbon business and its heavy losses. Mr Magapu is responsible for stagnating IT business L&T Infotech and L&T Tech services, Mr Deosthali is CEO of L&T Finance holding, Mr MV Kotwal man in charge of L&T's defence forays. All these gentleman are nearly or above 70. Career span of 50 years as paid employees in a company where state owned LIC/UTI are biggest stake holders - SCANDOLOUS - in a country where millions are job less. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!!--------------------------------------------------------------------------------------------------------------------------------------------------At LnT (BSE heavy weight, (proxy of Indian Economy etc), the top-bres (schizophrenic Egyptian Mummies) have displa geriatric trait of biting more than they can chew and digest. Were they not aware of the Telangana movement before bidding for Hyderabad Metro - now they want VGF of 3k crores? Why they want to play in Defence, LnT's 5k crores of what they call ahead in time investment in defence is at risk - now they want fixed orders from GoI - is this what they call business. 900 crore losses in Ship Buliding. 900 crores losses in International Hydrocarbon projects. They accept it as error of judgement - can they ask for Viability Gap Funding? How many cotton farmers get this VGF before suicide? Now they want cheap money to stay afloat -no risk/loss only profits at the cost of tax payers money is their Business Mantra - PPP. State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!------------------------------------------------CAUTION – Danger Ahead ! - LnT top-bres were on selling spree, Chairman Mr Naik sold his LnT shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results LnT plunged by 8 %, biggest intra-day decline since July 2009. Post Q2 results LnT share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Post Q3 – 2014 results another big intra-day fall of 7.44 per cent. Post Q1 – 2015 tumbled by 5 per cent in early hours trade, Q1 profit tanked 37 per cent. Average of lows of last 12 years (Jan to Dec, 2004 till 2012) is Rs 622. Average of highs of last 12 years is Rs 1124. Averages to Rs 875 apiece. Inherent malignancies – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs 5k crores stagnating investment in Defence. Aging CXO-MD potion of septuagenarians, leading the pack 73 yrs old Chairman Mr Naik completed 50 yrs with LnT as Paid Employee. Post Q2-2015 results - 3 year low of 722 or 6 year low of 386? State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!!------------------------------------------------What are codes of conduct and standards of corporate governance, code of ethics? Any CXO/MD level official ever got fired (or behind bars) in last 10 years - What happened in this case - any logical conclusion, any culpability established? Please refer TOI article – "whistleblower was right: CBI". Excerpts – "CBI confirmed slain National Highway project engineer Satyendra Dubey's allegation --illegally sub-contracted the multi-crore works awarded to them in the Golden Quadrilateral Project -- M/s L&T had misrepresented the facts". BS Article – "Rajya Sabha nods for whistle blowers bill". To quote Mr Naik "there is no bloody owner at L&T". Please GOOGLE ---Cl Action Suit Seeks $100 Million for Pregnancy Discrimination, Other Violations-.Can employees, investors, analyst TRUST these dinosaurs? All 60 leave! Got slapped with ban by World Bank – please refer ET article – -World Bank bars LnT for 6 months over forgery-. LIC/UTI GOI should intervene to Save LnT, fix retirement age to 60 NOW! ----------------------------Its not just Mr Naik, L&T is personal fiefdom of an old-men club, it is divided between septuagenarians vertical wise. Like BCCI, LnT is no less cozy club, an Old-Men club enjoying Fire Proof jobs and stratospheric compensation. Expensive CXO Maha Kumbh Mela at LnT - what is the number of CEOs at LnT and all its subsidiaries (138), their CTC? How far higher, this is to manage LnT group revenues of $14 bln than Mr Sikka (aged 46) of Infosys highest paid professional CEO (Rs 30 cr) in India, entrusted with business worth $ 8 bln in revenues. At LnT, just Chairman Mr Naik (aged 72) and group CEO Mr Vankatramanan are pegged at 21 and 14 crores. Information Age leaders, top-man of TATA group, Infosys, Microsoft are in their 40s, why this super 70s at LnT? ---------------------------------------------------------------------------------------Chairman Mr Naik's jaw-dropping musings on succession – QUOTE- You find a man in the world who will kill himself four times a day, has worked for more than a hundred years-- There is no such person.-- None of us here (at senior level) are working for money -UNQUOTE. Please refer ToI article – Vibrant Gujarat summit Day 1: 25 private jets bring high-flyers. Excerpts –Cabinet ministers arrived via scheduled flights -- private jet of AM Naik left immediately after arriving –. Mr Naik should learn to walk the talk if he cannot set example he can follow the one set by Mr Murthy, Mr Murthy worked for a token ry of INR 1 during his second stint at Infosys, very company that he founded. How about donating all his earnings stock and barrel here is one example of not working for money - Vyakarnam Anjenaya Sastry, 71, had joined Infosys in 1990, donated half of his holdings to the Infosys Employee Welfare Trust while leaving the company in 1996. If he had held on to the shares, they would have been worth about Rs 1,850 crore (1% of Infosys). Mr Naik please walk the talk! ------------------------------------------------Mr Naik says that in new economy he would have given a line of successors, okay than what Mr Magapu and Mr Deosthali are doing at L&T Finance and L&T Infotech, L&T Tech services, why not a leader in his/her 40s? Its a Catch-22 situation young insiders are not good enough for the top jobs at LnT and its subsidiaries, outsiders (laterals) cant with stand Despotic Gritocracy the old-men club. Top-men-eater Egyptian Mummies. Infotech ex-CEO Mr Banerji, two last joint CEOs Mr Chopra and Dr Aghi – QUIT. Mr Ravi Uppal CEO LnT Power (Mr Naik's potential successor)–QUIT. CEO LnT General Insurance Mr Joydeep Roy – QUIT. CEO LnT MF Mr Sanjay Sinha – QUIT. Old-men club is singing this bad chorus and opera a distorted version remix of Brayan Adams songs - 18 till I die and Summer off 69 - oh ya!. The band joined LnT some time in 60s. This public sponsored deafening cacophony and distortion should be stopped.--------------------------------------------------------------------------------------- GoI should intervene to stem the rot at LnT. Geriatric top-bres (Egyptian Mummies) at LnT have displa uncanny geriatric knack biting more than they can chew and digest. They have implemented major international hydrocarbon projects at losses; some sort of international CSR. Please allow me to give you all a glimpse (trailer) of a public sponsored circus - Gymnastics by 70 ton Gorillas and not-ready-to-extinct Dinosaurs at LnT. Please refer BS articles - LnT: International orders worth Rs 30,000 cr at risk - and - why analysts are angry with LnT. Exotic and despotic nonsense by geriatric in chief - why Mr Naik is slogging at 73 to find successor - - you find a man in the world who will kill himself four times a day, has worked for more than a hundred years;--There is no such person-. ------------------------------------On one hand Executive Chairman Mr. Naik and top-bres (Egyptian Mummies) are taking their compensation and retirement to the highest level possible peaks of 75 years and 21 crores, forget about hundreds of crores in stocks, on other hand FIRING young talented employees - Please GOOGLE ---Cl Action Suit Seeks $100 Million for Pregnancy Discrimination, Other Violations-.Can employees, investors, analyst TRUST these dinosaurs? All 60 leave! Got slapped with ban by World Bank – please refer ET article – -World Bank bars LnT for 6 months over forgery-. LIC/UTI GOI should intervene to Save LnT, fix retirement age to 60 NOW!--------------------------------------------------------------------------------------------------------------- -LnT is at standstill, similar narrative in IT, LnT Infotech founded as LnT-IT in late 80s, renamed to LnT Infotech in 1997 claiming to touch $1 billion in revenues since 2010 – still not there. Cognizant founded in 1997 is more that $10 billion in revenues. Sans DNA destruction of work culture and mockery of corporate governance at LnT, LnT Infotech could be what TCS is for TATAgroup companies, a great savior for old-economy TATA companies. LnT Infotech is well proven laggard, in news for failed attempt to bid for Satyam (Satayam is India's biggest accounting fraud, like L&T Satyam also was slapped with a ban by World Bank over forgery)), Patni, Polaris, Hexaware, rumored sell off to Fujitsu. Perennial entry/exit of lateral CXOs, listing gimmicks – it’s in shambles. Please refer ET article - LnT Info to hire joint CEOs by month end; but all decisions funnelled through AM Naik . Year 1999, Mr Naik appointed CEO of LnT group, Infosys headcount in March 2000 nearly 5k, now nearly 1.7 lakhs and LnT Infotech is nearly 20k. What policy paralysis, RBI rates etc Mr Naik (junior engineer turned L&T Chairman, completed 50 years as paid employee with L&T) wants to blame for this most dismal performance in IT space? L&T has failed to cut even 1% of IT business pie of $116 billion in India. L&T Infotech in IT space for more than quarter of a century (25 years) and not even $1 billion in revenues, headcount less than 20k! who is to blame for?-
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