Reliance Capital on Friday reported a consolidated net loss of Rs 1,006 crore for the first quarter ended June 30.
The financial arm of the Reliance ADAG group, controlled by Anil Ambani, had a net loss of Rs 1,095 crore in the corresponding quarter ended of 2020-21. Sequentially, the net loss was lower as compared with Rs 1,649 crore in the March 2021 quarter.
The company's total income during April-June 2021 stood at Rs 4,448 crore, higher as compared with Rs 4,287 crore in the year-ago quarter, Reliance Capital said in a regulatory filing.
Its total expenses rose to Rs 5,261 crore, from Rs 5,249 crore a year ago.
The company has a presence in finance and investment business, general and life insurance, commercial finance and others.
"The parent company (Reliance Capital) has defaulted in repayment of its obligations to the lenders and debenture holders, against which various lenders have filed litigations," Reliance Capital said.
It added that the parent company has incurred losses during the current and the previous years, which indicates that material uncertainty exists that may cast a significant doubt on its ability to continue as a going concern.
The firm said it is in the process of meeting its obligations through a time-bound monetisation of its assets in cognisance with debenture trustee (Vistra) and debenture holders.
Further, the committee of debenture holders has sought expressions of interest (EOI) for submission of asset monetisation plans for certain subsidiaries/investments of the parent company.
"The invitation of the EOI has been issued on October 31, 2020, and accordingly, the financial results of the parent company have been prepared on a going concern basis," it added.
Published 06 August 2021, 16:20 IST