Tata Tele Maharashtra today said its total comprehensive loss narrowed to Rs 454.46 crore for the three months ended June 30, 2018. The company, whose accumulated losses have exceeded its paid up capital and reserves, said in a regulatory filing that it has secured a support letter from the promoters, indicating their willingness to organise for any liquidity shortfall in meeting financial obligations and repayment of debt.
The company’s total comprehensive loss stood at Rs 681.26 crore in the March quarter and Rs 506.04 crore during the April-June previous fiscal.
Exceptional items during the quarter comprises restructuring cost of Rs 90.30 crore (Rs 135.04 crore in the preceding March quarter and Rs 264.30 crore for the last fiscal.
During the quarter ended September 2017, the company had recorded Rs 7,708.63 crore towards impairement loss on its consumer mobile business assets, based on the assessment of its recoverable value, and had disclosed the same as an exceptional item, it said.
Providing an update on the transfer of its consumer mobile business to Bharti Airtel, as announced in October 2017, Tata Teleservices said that on July 19, 2018, the company entered into a detailed implementation agreement with Bharti in relation to the scheme and the impact of the same will be provided in the next quarter, it added.
“Pending the required approvals, no impact of the proposed scheme has been considered in these financial results, except that company has made an assessment of assets and liabilities pertaining to consumer mobile business (disposal group) which are proposed to be transferred…,” it said.
Revenue from operations came is 39.5 per cent lower at Rs 334.45 crore for the June quarter compared to Rs 553.09 crore in the year-ago period.
“The accumulated losses of the company as of June 2018 have exceeded its paid up capital and reserves. The company has incurred net loss during the quarter ended June 30, 2018 and the company’s current liabilities exceeded its current assets as at that date,” it said.
Tata Tele said it is in discussions to monetise “certain assets”, proceeds of which will be used to meet its financial obligations when they fall due.
“Further, the company has obtained a support letter dated May 28, 2018 from its promoter indicating that the promoter will take necessary actions to organise for any shortfall in liquidity of the company that may arise to meet its financial obligations and timely repayment of debt,” it added. – Money Control