GVK Power & Infrastructure Limited has posted a loss of Rs 51.04 crore for the first quarter ended June 30, 2016 as against a loss of Rs 3.09 crore for the corresponding quarter last year on a standalone basis.
The company income for the first quarter was Rs 6.81 crore as against Rs 6.62 crore for the corresponding quarter last year.
The Hyderabad-based diversified infrastructure company has prepared the results as per Indian Accounting Standards (Ind AS) and the standalone results have been announced according to those norms.
In the accompanying notes to the results, the company informed that there is a possibility that these quarterly financial results may require adjustment before constituting the final Ind AS financial statements as of the ending of March 31, 2017 due to changes in the financial reporting requirements due to interpretations.
Referring to the GVK Coal Tokisud, the company management believes that they are likely to be appropriately reimbursed for cancelled coal mine and accordingly no provisions were made.
The company further stated that it would be able to establish profitable business operations and meet its obligations while its current liabilities being in excess of current assets is temporary in nature and will not impact GVK Coal. It also explained that this will not have any material adverse impact upon cash flows of the company.
Mentioning about the company debt and accumulated losses, the company stated it incurred losses during the quarter and preceding years. The company has delayed payment of loans and interest and certain loan accounts have been classified as non performing assets.
GVK has receivables aggregating to Rs 295.04 crore and provided guarantees and commitments for loans amounting to Rs 7,843.34 crore taken by GVK Coal Developers (Singapore) Pte Ltd (GVK Coal) as on June 30, 2016. This entity net liabilities exceeds net assets by $ 900 million (Rs 5,741.60 crore) as on June 30, 2015.
The company shares ended at Rs 6.64, up 6.92 per cent on the BSE.