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Tata Teleservices (Maha) Dec Qtr Losses Narrow To Rs 409.42 Crore

Tata Teleservices (Maharashtra) reported narrowing of losses to Rs 409.42 crore for the December 2018 quarter.

The company had posted a Rs 480.75 crore loss after tax in the October-December 2017 quarter, Tata Teleservices (Maharashtra) said in a BSE filing.

Revenue from operations came in at Rs 305.43 crore for the said quarter, which is about 27 percent lower than Rs 418.38 crore in the corresponding period the previous year.

“The accumulated losses of the company as of December 31, 2018, have exceeded its paid-up capital and reserves. The company has incurred net loss during the quarter ended December 31, 2018, and the company’s current liabilities exceed its current assets as at that date,” it said.

The filing added that Tata Teleservices (Maharashtra) is in the discussion for monetisation of certain assets, proceeds of which will be used to meet its financial obligations as and when they fall due.

“Further, the company has obtained a support letter from its promoters indicating that the promoter will take necessary actions to organise for any shortfall in liquidity. Based on the above, the company is confident of its ability to meet the funds requirement and to continue its business as a going concern and accordingly, the financial results have been prepared on that basis,” it said.

The filing said Tata Teleservices (Maharashtra), after taking approval from the Board of Directors, had entered into a term sheet on October 12, 2017 with Bharti Airtel.

The term sheet set out broad understanding and guidelines for transfer by way of a scheme of demerger of Tata Teleservices (Maharashtra) consumer mobile business (CMB) to Bharti, which represents a significant line of business of the company, it added.

Also, on July 19, 2018, the company entered into a detailed Implementation Agreement (IA) with Bharti in relation to the scheme.

“Pending the required approvals, no impact of the proposed scheme or the IA has been considered in these financial results, except that company has made an assessment of assets and liabilities pertaining to CMB (disposal group), which are proposed to be transferred and recorded it at lower of its carrying amount as at December 31, 2018 and fair value less costs to sell and classified it as ‘Assets held for sale’,” the filing said.

Considering the significant operational and financial interdependencies of different business units, management continues to identify the Cash Generating Unit (CGU) at the company level, it added.―Business Standard

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