Gammon India reports over Rs502 crore loss for 18 months to March 2016
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New Delhi: Debt-laden infrastructure firm Gammon India Ltd on Thursday reported consolidated net loss of Rs.502.51 crore for the 18-month period ended 31 March.
The company closed its accounts for nine months ended 30 September 2014, recording a consolidated net loss of Rs.728.88 crore.
In a filing to BSE, Gammon said, “The current period ending March 31, 2016 is for 18 months and the previous period the company had closed its account for the nine month period ended September 30, 2014. Therefore the figures for current audited period are not strictly comparable with those of the previous audited period.”
It further said that the ministry of corporate affairs has directed the company to either recover remuneration paid to Abhijit Rajan, chairman and managing director, for the period 1 April 2012 to 30 September 2014 or to file application for waiver of remuneration paid.
The company’s operating results have been affected in the last few years due to various factors including liquidity crunch, unavailability of resources on timely basis, delays in execution of projects, delays in land acquisition and approval of design by client, scarcity of labour and materials as well as operational issues, it said.
Its total income from operations stood at Rs.8,099.28 crore for the 18 months ended 31 March. The company’s total expenses during the period under review stood at Rs.7,181.89 crore.
Its overseas operations are characterized by weak order book, paucity of working capital and uncertain business environment. This has also resulted in various winding up claims filed against the company.
It further said the company is exploring various options for overcoming liquidity crisis. It is also in discussions with clients for clearing bottlenecks in timely execution of projects. The company is evaluating and exploring various courses of action for raising funds for company’s operations including options for strategic restructuring.