Unitech reports Rs 791 crore loss for FY19

Crisis-hit Unitech Ltd Friday reported a consolidate net loss of Rs 790.83 crore during the last fiscal.

Gurugram-based developer had posted a net loss of Rs 1,263.86 crore in the previous fiscal, the company said in a regulatory filing.

Total income declined to Rs 1,371.04 crore during the last fiscal from Rs 1,961.32 crore in the 2017-18.

Finance cost increased to Rs 584 crore during the period under the review from Rs 319 crore a year ago.

In its footnote, the auditor said that because of the company huge losses and default in repayments to its lenders - these conditions indicate "the existence of material uncertainly that may cast significant doubt about the company's ability to continue as a going concern".

The going concern is "critically dependent upon the company's ability to raise finance and generate cash flows in future to meet its obligation," it said.

The auditor also said that Unitech has incurred losses and defaulted in repayment of principal and interests to its lenders. The lenders have classified the company's borrowings as non-performing asset (NPA) and some of the lenders have called back loans.

The company has defaulted in repayment to debentures, public deposits, interest thereon, and statutory liabilities. Various litigation matters are pending before different forums and various projects of the company have stalled/slowed down, it added.

After being deferred several times, the company's board meeting was finally held Friday to approve the financial result for the fourth quarter of the last fiscal and entire 2018-19.

Earlier, the board meeting was scheduled on May 30 but was adjourned several times to June 15, June 25, July 4, July 12 and finally on July 19, 2019.

Ahead of the board meeting, the company's internal auditors S K P & Co. Chartered Accountants had resigned with effect from July 15, citing time constraints.