Videocon Industries which is facing bankruptcy proceedings under National Company Law Tribunal...
Videocon Industries which is facing bankruptcy proceedings under National Company Law Tribunal (NCLT), saw net losses of Rs 2,072.53 crore for Q4FY18 compared to a loss of Rs 558.38 crore a year ago. This was primarily on a decline in sales on account of the return of goods sold by the company.
The company said the results were delayed due to a ‘technical difficulty’. The board had approved the results on June 5. Videocon owes almost Rs 20,000 crore to its lenders and was admitted to the Mumbai bench of NCLT in June 2018.
“The referral or the Company to National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 as amended, had a severe impact on the perceptions of the dealers/customers on account of an uncertainty of the aftersales services,” said the company. This, the company said, forced them to offer discounts and incentives in the current quarter.
The total income saw a drop of 97 percent to Rs 61.69 crore in Q4FY18 from Rs 2,071.54 crore a year ago. Among the segments, consumer electronics and home appliances reported negative revenue of Rs 92.22 crore in Q4 compared to revenue of Rs 1,836.69 crore a year ago.
Videocon said the effect of the additional discounts and incentives offered by the company in respect of the sales for the earlier quarters/period was also given during the current quarter.
Videocon said they have been referred to NCLT under the IBC and there are persistent severe strains on the working capital.
“There is a considerable decline in the level of operations of the company and the company has been incurring losses. These factors raise significant doubts on the ability of the Company to continue as a going concern. The management has assumed that the going concern concept stands vitiated and is in the process of ascertaining the liquidation value of the assets,” said Videocon.
It added that they continue the process for ascertaining the liquidation value for remaining current assets such as raw materials, finished goods, stock-in-process, and receivables.In the consumer durables space, the manufacturing activity of Glass Shell division which manufactured panels and funnels used in Colour Picture Tube of Colour Television has been suspended from July 2017 due to poor demand. The management is of the view that the said factory and facilities can be, with some modifications, used for the production of solar panel glass, solar tense, glass fibre and glass blocks.