Cash-strapped Videocon posts Rs 6,760-cr FY19 loss on reduced income

Videocon Industries, which is facing insolvency proceedings, on Wednesday reported a huge loss of Rs 6,760.75 crore for the fiscal ending March 2019 against Rs Rs 5,264.04 crore in the year ago period mainly due to a sharp fall in income.

Videocon is under corporate insolvency resolution process under the Insolvency and Bankruptcy Code and since September its affairs, business and assets are being managed by resolution professional Abhijit Guhathakurta.

The financial results has been approved by the RP (resolution professional), the company said in a regulatory filing.

Total income declined to Rs 1,062.62 crore in 2018-19 from Rs 3,423.91 crore in the previous year.

In the January-March quarter, the company's loss widened to Rs 1,638.40 crore from Rs 1,023.08 crore in the comparable period of 2017-18.

Videocon said it had written off certain loans and advances aggregating to Rs 1,413.35 crore during the year ended March 2019 and "the said exercise for other current assets is continuing".

The company has been referred to National Company Law Tribunal under the Insolvency and Bankruptcy Code, and "there are persistent severe strains" on the working capital and "there is considerable decline" in level of operations and net worth as on the reporting date is negative and it continue to incur losses, the filing said.

"The Company has received invocation notices of corporate guarantees given by it and also the personal guarantees of promoter directors have been invoked," it said.

Since Corporate Insolvency Resolution Process (CIRP) is currently in progress, it is required that the company be managed as going concern during CIRP.

Videocon Group owes over Rs 90,000 crore to various public and private sector banks.