Tata Communications reports net loss of Rs 33.86 cr for Q1

Tata Communications today reported a net loss of Rs 33.86 crore for the first quarter ended June, 2015.
The company had reported a net loss of Rs 21.38 crore in the corresponding quarter of last fiscal, Tata Communications said in a filing to the BSE.
Total income from operations though increased marginally to Rs 5,206.27 crore for the reported quarter as compared to Rs 5,111.72 crore last year.
However, for the fiscal ended March 31, 2015, the company reported a net profit of Rs 1.29 crore whereas total income from operations stood at Rs 19,913.34 crore.
The company said delay in filing its financial year-end accounts was due to one of its foreign subsidiaries, Neotel, and its associate companies being unable to finalise their audited accounts.

Neotel continues to work with its auditors to resolve the outstanding issues and hopes to be in a position to approve its audited financial statements soon, the filing said.

"Rather than delaying further the release of its consolidated financial statements, the company finalised its annual accounts using the management accounts of Neotel," the filing said.
"The issue at Neotel involves potential reportable irregularities identified by its statutory auditors in respect of a particular third party intermediary engaged with Neotel during the third quarter of FY15 in connection with a customer contract. Neotel's Board then appointed an independent firm to investigate the matter," the company said.

Tata Communications said Neotel's Board has advised it that based on the investigation, there has been no finding of corruption or illegal activities with the exception of misconduct by one employee, who is no longer with Neotel.
"Pursuant to its obligations under the laws of South Africa, the matter has been referred to the appropriate authorities in South Africa," the filing added.