For the Anil Ambani group, not just its financial stress but also delay in reporting numbers has led to a domino effect on the group companies. Reliance Power reported its March quarter results late Saturday evening after multiple delays. Group company Reliance Infrastructure has, however, postponed results announcement to June 14.
In a late evening release sent to BSE on Saturday, RPower reported a loss of Rs 3,558.51 crore for the quarter. In the same quarter a year back, the company reported a profit of Rs 189.21 crore.
A combination of impairment, higher finance costs and lower income led to a loss in the March quarter for the power company. The impairment also included a revised view on its solar and gas-based power assets.
For the March quarter, the company took an impairment of Rs 4,170.19 crore, of which Rs 1,017.02 crore was reduced through withdrawal from its general reserves. Auditors in their report stated annual losses could have been higher had the company not withdrawn proceeds from its general reserve.
The auditors also noted had such withdrawal not been made, loss before tax for the year ended March 31, 20 19 would have been higher by the same amount. For the full year, the company reported a loss of Rs 2,955.91 crore.
The company's results note added that it is permitted to offset any expense or loss which, in the opinion of the board, is beyond its control.
RPower in its result notes also added, “The figures for the quarter ended March 31, 2019 and March 31, 2018 are the balancing figures between the audited figures in respect of full financial year and the restated year to date figures up to the third quarter of the respective financial year.”
In their report, auditors also made a reference to the method of depreciation adopted. “The method of depreciation adopted by the parent company, which is different from the method adopted by its subsidiaries, is a departure from the requirements of InD-AS,” they said. The report added, had the same method been followed annual consolidated loss would be higher by Rs 501.91 crore.
Certain related party loans have also been flagged off in the auditor’s report. “The parent company has taken intercorporate deposits (ICDs) from certain companies aggregating to Rs 403.41 crore during the year ended March 31, 2019,” auditors noted. They added: “The related party relationships of such companies with the parent company have not been considered. Had they been considered, the parent company would require prior approvals of the audit committee for these transactions.”
Reliance Power announced its March results after a one-day delay from its June 7 date to report them. In its statement to BSE, the company said, “The meeting of the Audit Committee commenced on June 7 and got adjourned to June 8, 2019. Consequently, the Board Meeting of the company also stood adjourned to June 8.” The company was earlier to announce its results on May 29 and postponed it to June 7, stating indisposition of certain directors.
Results for Reliance Infrastructure, which holds a promoter share in Reliance Power, will now be announced on Friday. In a late Saturday evening BSE statement, the company said, "The Audit Committee of our company has, therefore, sought time to review and incorporate the financials of Reliance Power in our consolidated financial statements.” Reliance Infrastructure was also expected to announce results on June 7.
In a late evening release sent to BSE on Saturday, RPower reported a loss of Rs 3,558.51 crore for the quarter. In the same quarter a year back, the company reported a profit of Rs 189.21 crore.
A combination of impairment, higher finance costs and lower income led to a loss in the March quarter for the power company. The impairment also included a revised view on its solar and gas-based power assets.
For the March quarter, the company took an impairment of Rs 4,170.19 crore, of which Rs 1,017.02 crore was reduced through withdrawal from its general reserves. Auditors in their report stated annual losses could have been higher had the company not withdrawn proceeds from its general reserve.
The auditors also noted had such withdrawal not been made, loss before tax for the year ended March 31, 20 19 would have been higher by the same amount. For the full year, the company reported a loss of Rs 2,955.91 crore.
The company's results note added that it is permitted to offset any expense or loss which, in the opinion of the board, is beyond its control.
RPower in its result notes also added, “The figures for the quarter ended March 31, 2019 and March 31, 2018 are the balancing figures between the audited figures in respect of full financial year and the restated year to date figures up to the third quarter of the respective financial year.”
In their report, auditors also made a reference to the method of depreciation adopted. “The method of depreciation adopted by the parent company, which is different from the method adopted by its subsidiaries, is a departure from the requirements of InD-AS,” they said. The report added, had the same method been followed annual consolidated loss would be higher by Rs 501.91 crore.
Certain related party loans have also been flagged off in the auditor’s report. “The parent company has taken intercorporate deposits (ICDs) from certain companies aggregating to Rs 403.41 crore during the year ended March 31, 2019,” auditors noted. They added: “The related party relationships of such companies with the parent company have not been considered. Had they been considered, the parent company would require prior approvals of the audit committee for these transactions.”
Reliance Power announced its March results after a one-day delay from its June 7 date to report them. In its statement to BSE, the company said, “The meeting of the Audit Committee commenced on June 7 and got adjourned to June 8, 2019. Consequently, the Board Meeting of the company also stood adjourned to June 8.” The company was earlier to announce its results on May 29 and postponed it to June 7, stating indisposition of certain directors.
Results for Reliance Infrastructure, which holds a promoter share in Reliance Power, will now be announced on Friday. In a late Saturday evening BSE statement, the company said, "The Audit Committee of our company has, therefore, sought time to review and incorporate the financials of Reliance Power in our consolidated financial statements.” Reliance Infrastructure was also expected to announce results on June 7.
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