Info-tech

Reliance Communications’ net loss widens to ₹1,372 crore

Our Bureau | | | Updated on: Nov 27, 2021
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Mobile network provider is undergoing corporate insolvency resolution process

Reliance Communications’ standone net loss has widened to ₹1,372 crore in the quarter ended September 30 against ₹1,204 crore in the year-ago period.

The overall net loss of Reliance Communications, which is undergoing corporate insolvency resolution process (CIRP), includes net loss of ₹57 crore from continuing operations (₹75 crore) and net loss of ₹1,315 crore from discontinued operations (₹1,129 crore).

Material uncertainty

As per the notes to accounts, since Reliance Communications continues to incur loss, current liabilities exceed current assets and the Group has defaulted in repayment of borrowings, payment of regulatory and statutory dues and pending renewal of telecom licenses, these events indicate that material uncertainty exists that may cast significant doubt on Group’s ability to continue as a going concern.

“...Had the corporate debtor provided interest and foreign exchange variation, the loss would have been higher by ₹1,123 crore and ₹2,436 crore for the quarter and half year ended September 30, 2021. The net worth of Reliance Communications as on September 30 and March 31 would have been lower by ₹19,126 crore and ₹16,691 crore respectively,” the notes said.

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Auditors have drawn qualification for non provision of interest and foreign exchange variations in their limited review report for the quarter and half year ended September 30.

Published on November 28, 2021

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