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Debt-ladden Reliance Communications Ltd. (RCom) posted a net loss of Rs 7,767 crore on a consolidated basis for the fourth quarter ended March 31, compared with a net loss of 19,776 crore recorded during the year-ago period.
The Anil Ambani-controlled company’s total income rose to Rs 1,089 crore during the quarter under review, compared with Rs 976 crore during Q4 of previous financial year, RCom said in a statement.
For the 12 months ended March 31, 2019 the company posted a net loss of Rs 7,206 crore, compared with Rs 23,839 crore recorded in the previous fiscal.
“The company continues to incur losses and its current liabilities exceed current assets, its wireless operations have been suspended and there is considerable decline in the level of wire line operations. Further, the company has defaulted in repayment of its borrowings, installments dues related to spectrum and payment of statutory dues,” it said.
“These events raise significant doubt on the ability of the company to continue as a "Going Concern". These events or conditions, along with other matters indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern,” it added.
The stocks of Reliance Communications closed lower by 2.83 per cent at Rs 2.06.
The company has not paid interest on borrowings amounting to Rs 1,063 crore and Rs 3,907 crore, respectively, for the quarter and year ended March 31, 2019, and Rs 3,055 crore for the previous year as per the terms of the borrowings.
Further, RCom has not credited foreign exchange variance of Rs 275 crore gain and Rs 803 crore loss for the quarter and year, respectively. In case of taking forex variance into account, the loss would have been higher by Rs 788 crore and Rs 4,710 crore for the quarter and year, it added.
RCom is undergoing Insolvency and Bankruptcy (IBC) proceedings, with the National Company Law Appellate Tribunal (NCLAT) permitting the operator’s appeal to continue the process.
Also read:NCLAT permits RCom plea to continue insolvency proceedings
The lenders of RCom had shortlisted five Resolution Professionals (RPs) based on technical evaluation for the debt-laden firm’s bankruptcy process.
Related news:RCom lenders to finalise RP from shortlist of 5
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