Reliance Infra hits over 28-year low as auditors raised concern over biz

Reliance Infra hits over 28-year low as auditors raised concern over biz

Thus far in the month of June, the share price of RInfra has tanked 49 per cent from the level of Rs 104, as compared to a one per cent decline in th

North Korea says talks ‘broke down’, US asserts they had ‘good discussion’
Rumour-mongering hitting Reliance Group’s interests, says Anil Ambani
Fate of Japan’s imperial dynasty rests on shoulders of 13-year-old

Thus far in the month of June, the share price of RInfra has tanked 49 per cent from the level of Rs 104, as compared to a one per cent decline in the S&P BSE Sensex.

SI Reporter  |  Mumbai 

Shares of (RInfra) hit an over 28-year low of Rs 52.70, down 10 per cent on the BSE on Monday in the early morning trade after the auditors raised questions about the company’s ability to continue in business.

The stock of Reliance Infrastructure, a part of Anil Dhirubhai Ambani Group (ADAG), was trading at its lowest level since February 1, 1991, according to data available with Bloomberg. It touched an all-time low of Rs 35 on April 12, 1990 on the BSE in intra-day trade, CapitalinePlus data shows.

Thus far in June, the share price of RInfra has tanked 49 per cent from the level of Rs 104, as compared to a one per cent decline in the S&P BSE Sensex.

The company had reported a net loss of Rs 3,301 crore in the fourth quarter of 2018-19 (Q4FY19), its biggest ever, one-time expenses of Rs 8,481 crore. The exceptional expense was related to defence business impairment, invocation of pledged shares, and loss at its power subsidiary, according to the company.

The firm’s auditors said they were unable to give an audit opinion on the annual results and also raised doubts about the company and some of its subsidiaries’ ability to continue as a going concern.

The auditors have further raised a going concern on RInfra, Reliance Naval and Engineering, the company’s Mumbai metro subsidiary, and a few other subsidiaries. On RInfra at the standalone level, the auditors added, “Relating to losses incurred during the year and certain loans for which the company is guarantor indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”

Besides RInfra, (down 10 per cent at Rs 69), Reliance Naval and Engineering (12 per cent at Rs 5.45), Reliance Power (7 per cent at Rs 4.71) and Reliance Communications (5 per cent at Rs 1.40) and Reliance Home Finance (5 per cent at Rs 13.60), other ADAG companies were down up to 12 per cent on the BSE. In comparison, the S&P BSE Sensex was down 0.41 per cent at 39,289 points at 09:45 am.

First Published: Mon, June 17 2019. 09:49 IST

Source

COMMENTS

WORDPRESS: 0
DISQUS: 0