“Based on the undrawn loan facilities, approved loan sanction facilities, working capital management, funds infusion from promoters and plan for monetizing investment in subsidiaries, TTSL is confident of meeting its repayment obligations, operating and capital expenditure requirements for the next twelve months”, said the company in its annual report.
The report added that the telco incurred a loss of Rs 4617.04 crore in the financial year gone by and has accumulated losses of Rs 30,301.89 crore till March end which has’ fully eroded its net worth’.
The Tata Group company also added that it has a net current liability of Rs 8382.70 crore and loans of Rs 4040.67 crore which are due for repayment in this fiscal year through March 2018.
In begining of August, the firm’s listed arm Tata Teleservices (Maharashtra) Ltd (TTML) had stated that lenders may recall loans of Rs 1,911 crore as the firm had not been able to satisfy them with its financial performance, as per a company note.
The company has not been able to satisfy the financial covenants stated in agreements with lenders of long term borrowings and lenders of external commercial borrowings which may result in loans aggregating to Rs 191,111 lakh being recalled by the lenders,” TTML said in the notes then.
The struggling telco for its June end quarter had reported a loss of Rs 506 crore against that of Rs 127.45 crore in the same period of last year mainly due to dip in revenues and over two-fold jump in finance cost.