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Liquor firm United Spirits (USL) on Wednesday reported a standalone net loss of Rs 1,799.3 crore for the three months ended March on account of increasing debt and liabilities. The company had run up a net loss of Rs 5,380 crore in the same period of the previous financial year, USL said in a filing to BSE. However, total income of the company on standalone basis rose 5.5 per cent to Rs 2,051 crore during the quarter under review, from Rs 1,943 crore in the year-ago period.
During 2014-15, USL reduced the gap of its consolidated net loss to Rs 1,688 crore against a net loss of Rs 4,489 crore a year earlier. However, total consolidated income from operation during 2014-15 came down 12 per cent to Rs 9,335 crore, from Rs 10,615 crore a year ago. Its total income from operations on stand-alone basis also declined 5.48 per cent to Rs 8,049 crore in 2014-15 from Rs 8,517 crore in 2013-14. USL suffered a loss of Rs 3,083 crore in 2014-15 transferred from the previous year. However, in 2013-14, USL had got a surplus of Rs 2,023 crore from the previous year.
"In relation to the stand-alone financial results, during the financial year ended March 31, 2015, the company has recorded the provision for diminution on long-term investment in subsidiaries amounting to Rs 361.81 crore and loans and advances to subsidiaries amounting to Rs 354.35 crore," USL said. This provision arises primarily due to low capacity utilisation, negative margins or strategic shift in focus of business. The company has recorded the provision based on third-party valuations, it added.
It added: "In relation to the consolidated financial results, during the financial year ended March 31, the company has recorded impairment of goodwill amounting to Rs 120.90 crore. The company has recorded this impairment in line with the factors considered above."
