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New Delhi, Mar 6 () <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> was the biggest lender to <keyword id="6360217" type="UNKNOWN" weightage="20" keywordseo="loan">loan</keyword> defaulter travel firm <keyword id="44449" type="COMPANY" weightage="20" keywordseo="Cox-Kings">Cox &amp; Kings</keyword> with total claims of over Rs 2,285 crore, according to a list of financial creditors prepared by the resolution professional of the debt-ridden firm. Financial creditors have submitted a claim of over Rs 5,911 crore for debt they provided to Cox &amp; Kings, according to a regulatory filing by the company. Cox &amp; Kings is currently going through the corporate insolvency resolution process. The Mumbai bench of the National Company Law Tribunal in Mumbai has directed to initiate insolvency proceedings against Cox &amp; Kings in October last year over the plea filed by Rattan India Finance, claiming default on a loan of Rs 30 crore by the travel company. Axis Bank has submitted a claim of Rs 1,065 crore, State Bank of India Rs 635 crore, Indus Ind Bank Rs 270 crore, Abu Dhabi Commercial Bank Rs 218 crore, Bank of Baroda Rs 188 crore, Central Bank of India 157 crore, Kotak Mahindra Bank Rs 148 crore, UTI Trustee Company 128 crore, Andhra Bank Rs 103 crore, SBI cards and payment services Rs 102 crore to the RP of Cox &amp; Kings. Other banks have exposure below Rs 100 crore which includes SBI (UK). HDFC Bank, Indian Bank, and IDFC Bank, among others. Around 2,500 operational creditors have submitted claims of over Rs 631 crore, 2,440 employees and workman have claimed dues of over Rs 94 crore and other creditors have submitted claims of over Rs 3 crore. The company's auditors have noticed the use of "allegedly forged financial statements" in the accounts of its UK-based subsidiary Prometheon Enterprise. The auditors of Cox &amp; Kings have found that the audited consolidated financial statements of Prometheon Enterprise were not signed by Raffingers, the auditor of its UK-based arm. The company in an earlier filing had said that "the newly appointed statutory auditors, in the course of the performance of his duties as auditor, have a reason to believe that an offence of fraud involving Rs 1 crore or above (individual amount), is being or has been committed in the company by its officers or employees and accordingly correspondences to the Ministry of Corporate Affairs is in process.". PRS HRS

Yes Bank was the biggest lender to loan defaulter Cox & Kings

<ul><li>Cox &amp; Kings declared on Thursday that it has defaulted on payments worth ₹1.5 billion.</li><li>It had owed as much as ₹2 billion to two investors for its short-term unsecured debt.</li><li>Two agencies, Brickwork Ratings and CARE Ratings downgraded the company within the span of a week.</li></ul> Tour operator Cox &amp; Kings declared on Thursday that it has defaulted on payments worth ₹1.5 billion, even as it has repaid as much as ₹500 million. It had owed as much as ₹2 billion to two investors for its short-term unsecured debt. After the announcement late last night, the stock touched lower circuit at ₹36, and is down by 10% in early morning trade. Cox &amp; Kings had blamed rating downgrades for exacerbating the situation. It becomes tougher for a company to raise further money in the market after rating downgrades. Two agencies, Brickwork Ratings and CARE Ratings downgraded the company within the span of a week. This sent the stock on a downward spiral, stressing the troubled company further. “We wish to state that the company has been meeting its liability obligations. However, due to a cash flow mismatch and a situation exacerbated by rating downgrade, the company proposes to meet its financial obligations through a combination of internal accruals and monetization of assets,” Cox &amp; Kings said. The company also promised that it is working towards plans to make good of its financial obligations. High debt has been troubling the company in the last few years, and it has downsized operations too to pare debt,<a href="https://www.business-standard.com/article/companies/cox-kings-shares-decline-26-following-credit-rating-downgrade-119062700039_1.html"> according to reports</a>. Last year, it sold its education tour business in Europe for ₹43.8 billion, to bring its debt down. However, it will have monetise more assets to stay afloat.

Cox & Kings' ₹1.5 billion default has wiped out ₹720 million of shareholder wealth

New Delhi, Mar 2 () Travel firm Cox &amp; Kings on Monday informed that the newly appointed auditors of the company have noticed the use of "allegedly forged financial statements" in the accounts of its UK-based subsidiary Prometheon Enterprise.The auditors of Cox &amp; Kings have found that the audited consolidated financial statements of Prometheon Enterprise were not signed by Raffingers - the auditor of its UK-based arm.Cox &amp; Kings is presently going through corporate insolvency resolution process.The allegedly forged financial statements were used by the previous statutory auditors of Cox &amp; Kings while preparing consolidated financial statements of the company, the resolution professional of the company said in a regulatory filing, adding that now it stands "incorrect" since it was based on such "allegedly forged subsidiary financials".The travel firm will soon share update in due course, once certainty over the people involved in such discrepancies are identified, it added."We wish to inform you that the newly appointed statutory auditors have come across the fact that the audited consolidated financial statements of Prometheon Enterprise Ltd as used for the purpose of preparation of Consolidated Financial Statements of Cox &amp; Kings for FY 2018-19 were not signed by the auditor of Prometheon Enterprise Ltd i.e. "Raffingers". "And allegedly forged financial statements were used by the previous statutory auditors for the purpose of consolidated financial statements while issuing their auditors report dated May 30, 2019 on Consolidated Financials," it said.Pipara &amp; Co LLP, Chartered Accountants, have been appointed as the statutory auditors of Cox &amp; Kings by the Resolution Professional with effect from February 7, 2020.It was approved by its lenders in the meeting of Committee of Creditors on January 30, 2020."The newly appointed Statutory Auditors, in the course of the performance of his duties as auditor, have a reason to believe that an offence of fraud involving Rs 1 Crore or above (individual amount), is being or has been committed in the Company by its officers or employees and accordingly correspondences to the Ministry of Corporate Affairs is in process," the company said in the filing.The Mumbai bench of the National Company Law Tribunal in Mumbai has directed to initiate insolvency proceedings against Cox &amp; Kings in October last year over the plea filed by Rattan India Finance, claiming default on a loan of Rs 30 crore by the travel company. KRH BAL

Cox & Kings reports alleged fraud in account of UK-based arm Prometheon

Mumbai, Feb 17 () The National Company Law Tribunal on Monday granted three days to suspended directors of tours and travel services firm Cox &amp; Kings for submitting statutory information and records to the resolution professional (RP). The RP of the tours and travel company told the tribunal that the former directors and the erstwhile auditor are not submitting statutory information and records, which is making the insolvency process difficult. The Mumbai bench of the NCLT in October 2019 admitted an insolvency application against Cox &amp; Kings after the tour operator defaulted on its debt obligations to the company's financial creditor, Ratan India Finance. In November 2019, the tribunal had directed the suspended directors to cooperate with the RP. The NCLT Mumbai has granted time till Thursday to the former directors to cooperate, and in case of a failure to do so the tribunal will lodge a police complaint. In May and June 2019, Ratan India had approved Rs 70 crore loans to Cox &amp; Kings, of this Rs 30 crore was disbursed by the financial creditor at an interest of 13.5 per cent per annum with a maturity date of August 31. The loans were secured by guarantee deeds extended by the tour operator towards the financial creditor. Ratan India had recalled its loan facility as Cox &amp; Kings defaulted on repaying an instalment on the loan amounting to Rs 2.50 crore, which was due for repayment in June. The financial creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code to recover the amount lent to the tour and travel company. The tribunal, while allowing the application, imposed a moratorium on institution of suits or continuation of pending suits against Cox &amp; Kings with effect from October 22, 2019, and had directed the interim resolution professional to make a public announcement of the corporate insolvency resolution process against the company. SM MRMR

NCLT grants 3 days to Cox & Kings' former directors to submit records

<ul><li><keyword id="8913237" type="UNKNOWN" weightage="20" keywordseo="yes-bank-ceo-prashant-kumar">Yes Bank CEO Prashant Kumar</keyword> has confirmed that the private sector entity will be conducting a forensic audit of accounts that may not be acting in good faith. </li><li>In an exclusive interview with Business Insider, Kumar clarified that the exercise will not necessarily be restricted to the top 10 accounts. </li><li>According to him, bigger parties do get priority but any account acting suspiciously can come under the bank’s radar for further scrutiny.</li></ul><keyword id="2643328" type="ORGANIZATION" weightage="20" keywordseo="Yes-Bank-CEO">Yes Bank CEO</keyword> <keyword id="219963" type="PERSON" weightage="20" keywordseo="Prashant-Kumar">Prashant Kumar</keyword> confirmed that the private sector entity is looking to conduct an in-depth forensic investigation into some of its accounts that show ‘suspicion’. However, he pointed out that the exercise will not necessarily be restricted to the top 10 accounts. “It’s not about the top 10. Wherever there’s a customer account where we have a fairly good sense of something wrong happening, we can always find out of the truth with a forensic audit,” Kumar shared exclusively with Business Insider during a #HangoutwithBI Twitter Live. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="12" retweetcount="8" status="#HangoutwithBI | @BiIndia's @iyer_sriram in conversation with @YESBANK's CEO Prashant Kumar (@pk63) on Yes Bank's j… https://t.co/zaSuMiwqy3" createdat="1600767329000" id="1308339124982571010"></div> There is no ticket size, benchmark, or threshold but there’s obviously more on the line with bigger accounts. “Wherever you have a large number of loans, you need to prioritise. Priority will be more for bigger parties first,” said Kumar. The ‘bigger parties’ include the companies under the Anil Dhirubhai Ambani Group (ADAG), the Essel Group, Essar Group, and Cox &amp; Kings, according to the <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/yes-bank-to-get-fresh-forensic-investigation-into-its-top-10-defaults/articleshow/78226246.cms">Economic Times.</a> What is a forensic investigation? “A forensic audit is where we, as a bank, have suspicion in terms of what kind of transactions happened in that account,” explained Kumar. Suspicious transactions cover a wide array of exchanges, regardless of whether they occur in cash or otherwise. According to the <a href="https://dor.gov.in/preventionofmoneylaundering/str-suspicious-transaction-reports#:~:text=Suspicious%20transaction%20means%20a%20transaction,the%20proceeds%20or%20crime%3B%20or">Department of Revenue</a>, this can include: <ul><li>The loan granted being used for purposes other than what the loan was specified for </li><li>Where there’s no economic rationale </li><li>When a transaction appears to be made under circumstances of unjustified complexity </li></ul>A digital forensic audit and asset tracing probe can help the bank confirm or relegate its suspicions. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/dailyhunt-to-launch-family-of-bharat-apps-claiming-it-can-push-a-new-mobile-app-every-three-days/articleshow/78250283.cms">EXCLUSIVE: Dailyhunt is curating an entire family of 'Bharat' apps — claims it can push a new mobile app every three days</a> <a href="https://www.businessinsider.in/finance/banks/news/rajya-sabha-passes-banking-amendment-bill-2020/articleshow/78251384.cms">Rajya Sabha passes Banking Amendment Bill 2020 bringing cooperative banks under RBI's umbrella</a> <a href="https://www.businessinsider.in/defense/news/latest-updates-on-india-china-border-issue/articleshow/78162853.cms">India-China border dispute was discussed for 14 hours at the sixth Corps Commander-level meeting</a>

EXCLUSIVE: YES Bank CEO Prashant Kumar clarifies that the forensic investigation isn't restricted to the top 10 defaulters

<ul><li>The Yes Bank crisis could have a cascading effect on the stock markets. </li><li>Businesses with deposit accounts at Yes Bank may not be able to make payments on loans taken from other financial institutions. </li><li>Mutual funds have a total exposure of ₹2,848 crore, and most are already side-pocketing the risk. </li></ul>As the Yes Bank crisis continues to unfold, not everyone is on board with the Reserve Bank of India’s (RBI) scheme to restructure the troubled bank. Mutual funds stand to lose millions and the moratorium limiting withdrawals to ₹50,000 could spell trouble for companies who are using the bank’s services. “With large-sized withdrawals disallowed, a number of companies availing of facilities from Yes Bank could face disruption in their operations, which may constrain their ability to service financial obligations on time,” said global rating firm CRISIL in a statement. As the fourth largest private sector bank in the country, Yes Bank has an asset book of more than ₹3.45 crore and deposits exceeding ₹2 lakh crore. CRISIL believes that the moratorium has “material implications” for companies using Yes Bank for loans, deposits, bonds and other instruments. How Yes Bank crisis could affect other banks The fall out from funds being stuck at the troubled bank could result in companies defaulting on their loans from other financial institutions since their payments are linked to deposit accounts at Yes Bank. It may further aggravate liquidity issues for the already cash-starved non-banking lenders, according to a report by <a href="https://www.businessinsider.in/business/news/yes-bank-reconstruction-may-further-aggravate-liquidity-issues-for-nbfcs-report/articleshow/74579814.cms">Fitch Ratings.</a> “There could also be a marginal uptick in delinquencies in retail loans of banks and non-banks,” said CRISIL. Companies using Yes Bank’s letters of credit and bank guarantees to leverage their businesses may also have to rethink their plans. “There are also some securitisation transactions of other originators where Yes Bank is a counterparty - either as the bank where credit enhancement in the form of fixed deposits is being maintained, or as the collection and paying agent for the transaction,” said CRISIL. NSE Clearing (NCL) and India Clearing Corporation (ICCL), the biggest clearing firms in the country, have told members that any existing benefit toward bank guarantees and fixed deposit receipts issued by Yes Bank were to be squared off by Wednesday, March 11. “The RBI decision has a cascading effect on trading members and their clients at large since they may not be able to cover their positions from their own funds,” Association of National Exchanges (ANMI) president Vijay Bhushan told <a href="https://economictimes.indiatimes.com/markets/stocks/news/yes-bank-fds-bank-guarantees-no-longer-valid-traders-have-to-arrange-funds-by-wednesday/articleshow/74545067.cms">ET.</a> Bonding over bonds Nearly 32 mutual funds are exposed to Yes Bank’s debt with a total exposure of ₹2,848 crore. Many of them are AT 1 (Additional 1) bonds, set to be written off completely. Mutual funds owned by Nippon, Kotak, and Franklin <a href="https://economictimes.indiatimes.com/markets/stocks/news/yes-banks-at1-bond-write-down-these-mfs-pension-funds-stand-to-lose-most/articleshow/74555609.cms">have the most to lose</a>. After news broke of RBI superseding Yes Bank’s board, rating agency ICRA downgraded Yes Bank’s debt instruments to a “D” — below investment grade. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td colspan="2" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mutual fund owners with the most to lose from RBI’s scheme to restructure Yes Bank: </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mutual fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Loss </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon Mutual Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,500 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Franklin Mutual Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹590 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Barclays Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹246 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Mutual Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹130 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹100 crore </td></tr></tbody></table> Nippon India Mutual Fund, which has the largest exposure, was the first to side-pocket the risk. The move prevents distressed assets, like Yes Bank, from damaging returns generated from better-performing assets. PGIM India Mutual Fund, UTI Mutual Fund, Franklin Templeton Mutual Fund and Baroda Mutual Fund <a href="https://www.bloombergquint.com/business/yes-bank-news-two-more-mutual-funds-side-pocket-exposures-to-yes-bank-bonds">soon followed suit</a>. Axis Trustee Services, on the other hand, filed a petition to delay any action until its bond investors have had the time to review its impact. It asks the court to give enough time for bond investors to review the proposed plan. <div type="twitter" handle="LiveLawIndia" handlename="Live Law" image="http://pbs.twimg.com/profile_images/897707258334916608/nMQWwGlo_normal.jpg" favoritecount="11" retweetcount="6" status="Axis Trustee Services Ltd, a debenture trustee of #Yes_Bank , on Monday petitioned the Bombay High Court against th… https://t.co/pE53lzxTwl" createdat="1583913099000" id="1237647359091195905"></div>

 According to Axis, the proposal to write off the value of over ₹8,000 AT-1 bonds is unjustified and goes against global best practices. It argues that the scheme put forth by the RBI gives preference to Yes Bank promoters despite their shady record and mismanagement of resources — which landed the bank in hot water, to begin with. The possibility of the moratorium being cut short The proposed restructuring of Yes Bank includes recapitalisation of ₹20,000 crore with equity contribution and bulk deposits of around ₹30,000 crore by multiple-state owned banks. “If equity commitments are in place and CD funds flow in, the moratorium may be lifted by the end of the week,” RBI administrator of Yes Bank told reporters on March 10. CRISIL believes that the challenges in the face of the Yes Bank crisis are likely to be temporary, since they are a direct result of a crunch in liquidity and cash flow. Nonetheless, the temporary crunch will result in systemic risk until the moratorium is resolved — like the cost of borrowing and capital-raising becoming tougher for other banks Sources told <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/under-the-scanner-rbi-to-check-if-yes-bank-auditor-bsr-had-raised-red-flags/articleshow/74568396.cms">ET</a> that RBI is checking with Yes Bank’s auditor — BSR &amp;Co, which is a part of KPMG India — whether or not the proposal for SBI to buy a stake in Yes Bank will have any “material impact” on the existing accounts with the bank. Another one bites the dust The repeated incidents of large — supposedly ‘too big to fail’ — companies are becoming increasingly rampant. Last September, the Mumbai-based Punjab and Maharashtra Cooperation (PMC) Bank faced a similar crisis. It was placed under an RBI administrator for six months after under-reporting of loans going bad. However, banks aren’t the only ones going down. The collapse of Jet Airways and Cox &amp; Kings left many investors — and travelers — stranded. Even stockholders in IL&amp;FS and DHFL saw their money disappear overnight due to mismanagement, fraud and corruption within the companies. More than just getting Yes Bank on its feet, the central government and the RBI will have to address the trust deficit that now plagues the market. See also: <a href="https://www.businessinsider.in/finance/news/indias-largest-bank-stock-sees-the-sharpest-fall-in-over-7-years-investors-want-to-say-no-to-yes-bank/articleshow/74504449.cms">India's largest bank stock sees the sharpest fall in over 7 years — investors want to say 'no' to Yes Bank</a> <a href="https://www.businessinsider.in/finance/news/finance-minister-assures-employment-and-salary-at-yes-bank-at-least-for-one-year/articleshow/74514015.cms">Finance Minister assures employment and salary at Yes Bank at least for one year</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-share-price-falls-10-after-rbi-limits-withdrawals/articleshow/74504094.cms">Yes Bank share price nose dives 72% after RBI limits withdrawals</a>

You Searched For "cox kings default" and got 7 results

Yes Bank was the biggest lender to loan defaulter Cox & Kings

PTI

Cox & Kings' ₹1.5 billion default has wiped out ₹720 million of shareholder wealth

Katya Naidu

Cox & Kings reports alleged fraud in account of UK-based arm Prometheon

PTI

NCLT grants 3 days to Cox & Kings' former directors to submit records

PTI

EXCLUSIVE: YES Bank CEO Prashant Kumar clarifies that the forensic investigation isn't restricted to the top 10 defaulters

Prabhjote Gill

Yes Bank crisis and its domino effect on bonds, mutual funds and other corporate defaults

Prabhjote Gill

One woman saw the Great Recession coming. Wall Street's boys club ignored her.

Josie Cox

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