Lanco Infratech Limited has posted a huge loss of Rs 1,691.63 crore for the first quarter ended June 30, 2017 as as against a loss of Rs 1,27.77 crore for the corresponding quarter on a standalone basis.

The income of the diversified infrastructure company now faced with insolvency proceedings, for the first quarter has come down to Rs 254.74 crore as against Rs 359.97 crore for the corresponding quarter last year.

For the financial year ended March 31, 2017, the company had posted a loss of Rs 889.52 crore and income of Rs 1757.53 crore.

The company results were finalised and intimated to the stock exchanges by Savan Godiwala, the resolution professional appointed for Lanco Infratech and certified by G Venkatesh Babu, MD and CEO and statements by T Adi Babu, CFO.

The National Company Law Tribunal, Hyderabad on August 7, 2017 had initiated Corporate Insolvency process and Savan Godiwala was appointed Interim Resolution Professional. After he took over, the results declaration was put off and now announced.

During the quarter, the company net worth has been fully eroded and its ability to meet contractual obligations for EPC contacts, financial obligations to lenders and investment commitments to Group companies is dependent on the resolution of the matters as a part of the insolvency proceedings.

Currently, the company is in the process of identifying the alternatives and the results are prepared as a going concern.

Statutory auditors Brahmayya & Co have qualified results in some areas and mentioned about the lender invoking guarantees amounting to Rs 7,266 crore and company efforts to pursue recovery moves.

The notes accompanying results highlight various projects including Griffin Coal Mine in Australia, Teesta Hydel Project, Lanco Hills Technology Park, Mahatamil Mining project and roadways and various concerns relating to them also moves to divest some, monetise and repay debt.

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