IVRCL has posted a net loss of Rs 263.94 crore for the fourth quarter ended March 31, 2016, against a net loss of Rs 155.08 crore in the corresponding quarter last year on a standalone basis.

Total income was down significantly at Rs 652.25 crore against Rs 1,027.54 crore.

For the year ended March 31, 2016, the company posted a net loss of Rs 1,060.43 crore and a total income of Rs 2,361.67 crore against a net loss of Rs 672.23 crore and total income of Rs 3117.41 crore in the previous financial year.

On a consolidated basis, the Hyderabad-based debt laden construction and infrastructure company posted a net loss of Rs 1,479.20 crore and income of Rs 3,012.84 crore against a loss of Rs 1,556.53 crore and income of Rs 3,819.53 crore in the corresponding period last year.

Auditors Chaturvedi & Partners has qualified the company's results.

Referring to preparation of financial statements of the holding company on going concern basis, it said during the year the company has incurred a net loss of Rs 1,060.43 crore resulting in accumulated losses of Rs 2,040.14 crore. This resulted in substantial erosion of net worth as on March 31, 2016.

The company’s current liabilities exceed current assets. It has obligations towards borrowings and pertaining to operations, including unpaid creditors and other dues, as on March 2016.

These matters require the company to generate additional cash flows to fund the operations as well as other obligations notwithstanding the current level of low operating activities and difficulties with respect to realisation of current assets, including litigation in various projects.

In view of these matters, the appropriateness of assumptions of going concern is dependent upon the sale/divestment of investments and the company’s ability to raise requisite finance/generate cash flows from operations to meet its obligations.

The company shares were trading at Rs 3.93, down 6 per cent on the BSE.

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Published on June 2, 2016