Reliance Home Finance net loss widens to Rs 238 cr in Q4

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Reliance Home Finance, part of Reliance Capital, on Friday reported doubling of its loss to Rs 238 crore for the fourth quarter ended March 2020.
Reliance Home Finance

New Delhi, May 8 (PTI) Reliance Home Finance, part of Reliance Capital, on Friday reported doubling of its loss to Rs 238 crore for the fourth quarter ended March 2020.

The debt-ridden company had posted a loss of Rs 110 crore in the same period a year ago, the company said in a regulatory filing.

The company’s total income declined to Rs 281 crore during the quarter from Rs 611 crore in the year-ago period.

The company said it has cash on hand of approx. Rs 700 crore in the form of investment in liquid mutual fund.

“However the delay in debt servicing is due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets, pursuant to order dated November 20, 2019 passed by the Delhi High Court,” it said.

The lenders of the company have entered into an Inter-Creditor Agreement (ICA) for arriving at the debt resolution plan in accordance with the circular dated June 7, 2019 issued by the Reserve Bank of India on Prudential Framework for Resolution of Stressed Assets.

The lenders had appointed the resolution advisors, cash flow monitoring agency, forensic auditor, valuers and legal counsel, it said, adding, the period of 180 days as envisaged expired on January 3, 2020 and the lenders have further agreed to extend the ICA till June 30, 2020 and have communicated with RBI for the same.

“The company is confident of implementing its Resolution Plan and in view of the steps taken by the firm, the accounts of the company have been prepared on going concern basis,” it said.

Source: PTI

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