- RCom is currently facing insolvency proceedings
- NCLAT allowed RCom to exclude the 357 days spent in litigation and admitted it for bankruptcy proceedings
Reliance Communications (RCom), which is facing insolvency proceedings, Monday reported a consolidated net loss of Rs 7,767 crore in the fourth quarter of 2018-19. The company had reported a net loss of Rs 19,776 crore in the corresponding period of 2017-18. Total income rose to Rs 1,089 crore during the January-March quarter of 2018-19 as compared with Rs 976 crore in the fourth quarter of 2017-18, Reliance Communications said in a regulatory filing.
For the entire financial year 2018-19, the company reported a net loss of Rs 7,206 crore as against Rs 23,839 crore in 2017-18.
The filing said that the company has not provided the interest of Rs 1,063 crore and Rs 3,907 crore for the quarter and year ended March 31, 2019, respectively, and foreign exchange variance aggregating to Rs 275 crore gain and Rs 803 crore loss for the quarter and year ended March 31, 2019, respectively.
Had the company provided interest and foreign exchange variance, the loss would have been higher by Rs 788 crore and Rs 4,710 crore for the quarter and year ended March 31, 2019, respectively, it said.
Its total income for the last financial year declined to Rs 4,194 crore as compared with Rs 4,684 crore in 2017-18.
Earlier this month, the National Company Law Tribunal allowed RCom to exclude the 357 days spent in litigation and admitted it for bankruptcy proceedings.
With this, RCom has become the first Anil Ambani group firm to be officially declared bankrupt. It has a debt of over Rs 50,000 crore to banks.
RCom was in trouble for years, forcing it to discontinue operations two years ago. Its efforts to stave off bankruptcy by striking an asset sale deal with Reliance Jio Infocomm Ltd was scuttled due to delays in legal and government approvals.
But, it could not meet any of the several publicly made promises to pay back lenders by monetising real estate and spectrum assets.