- Anil Ambani resigned together with four others from his position as Director of Reliance Communications, even as bankrupt carriers were approaching selling their properties under the insolvency process.
- In the second quarter of the fiscal year, Reliance Communications (RCom) reported a combined loss of Rs 30,142 crore due to the government’s allocation of liabilities.
In the second quarter of the fiscal year, Reliance Communications (RCom) reported a combined loss of Rs 30,142 crore due to the government’s allocation of liabilities.
The loss of RCom is the second-largest reported in corporate India, a day after the loss of July-September by Vodafone Idea was India’s largest Inc. seen at. For similar reasons, 50,921 crores. Bharti Airtel also reported a loss of more than 23,000 crores on Thursday as a result of provisions for additional statutory dues. In the same period last year, the bankrupt telecom company posted a profit of Rs 1,141 crore and is going through an insolvency process.
The company said it had set aside Rs 28,314 crore in a regulatory filing on Friday following a recent Supreme Court ruling on the measurement of telecom companies ‘ annual adjusted gross revenue (AGR).
Anil Ambani resigned together with four others from his position as Director of Reliance Communications, even as bankrupt carriers were approaching selling their properties under the insolvency process.
In a notice to the Bombay Stock Exchange on Saturday, Chhaya Virani, Ryna Karani, Manjari Kacker and Suresh Rangachar also resigned from management positions.
“Manikantan V. has also previously tendered his resignation as the Company’s Director and Chief Financial Officer. The above resignations shall be submitted for consideration to the Company’s creditors ‘ committee,” the company said.
The share of RCom closed at Rs 0.59 on Friday, falling by 3.28%.
The development follows RCom’s consolidated loss for the second quarter of Rs 30,142 crore, released on Friday after paying for legal license fees and spectrum use dues, against a gain of Rs 1,141 crore the year before.
The loss of the telco was the second-worst in corporate India, following the loss of Rs 50,921.9 crore posted by Vodafone Idea in July-September on Thursday. Bharti Airtel, due to similar provisions, reported a loss of over Rs 23,000 crore on Thursday.
After the recent Supreme Court ruling on the calculation of telecom companies ‘ adjusted gross revenue (AGR), the telco set aside Rs 28,314 crore, it said in a regulatory filing on Friday.
The colossal losses are on the back of October 24’s Supreme Court order, which approved the government’s stance to include non-core products in AGR. In addition to legal obligations, the ruling left 15 telcos facing Rs 1.3 lakh crore.
