Tata Teleservices (Maharashtra), today reported narrowing of loss to about Rs 382.3 crore for the quarter ended September 30, 2018, against Rs 8,198.3 crore in the year-ago period. During July-September 2017, the company had recorded Rs 7,708.6 crore towards impairment loss on its Consumer Mobile Business assets based on the assessment of its recoverable value and disclosed the same as an exceptional item, Tata Teleservices said in a regulatory filing, as reported by PTI.
For the quarter under review, the exceptional items stood at Rs 22.37 crore, which included restructuring cost of Rs 17.7 crore. The company’s total income fell 33 per cent to Rs 336.29 crore for the second quarter of 2018-19, compared to Rs 502.11 crore in the corresponding period the previous year.
The company said it is in the discussion for “monetisation of certain assets”, the 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 promoter indicating that the promoter will take necessary actions to organise for any shortfall in liquidity,” Tata Teleservices said exuding confidence on its ability to meet the fund requirement and to continue its business as a going concern.
It noted that the accumulated losses of the company as of September 30, 2018, have exceeded its paid-up capital and reserves. “The company has incurred a net loss during the quarter ended September 30, 2018, and the company’s current liabilities exceeded its current assets as at that date,” it said.
Tata Teleservices had announced last year that Bharti Airtel would acquire Tata Group’s loss-making consumer mobile telephony business. The company filed the scheme with the National Company Law Tribunal (NCLT), Mumbai bench on April 10, 2018, after taking approval from the concerned stock exchanges for demerger of its consumer mobile business to Bharti.
Further on July 19, 2018, the company entered into a detailed implementation agreement with Bharti with regard to the scheme.