Future Supply Chain Solutions reports Q4 net loss of Rs 624.22 crore
Future Supply Chain Solutions Ltd on Monday reported a net loss of Rs 624.22 crore for the fourth quarter ended March this year.
The loss is mainly due to the credit loss of group company Future Retail Ltd (FRL) which is now subject to insolvency proceedings.
The company reported net profit of Rs 47.87 crore before exceptional items and taxes in the January-March quarter, according to a regulatory filing.
It had reported a net loss of Rs 18.92 crore for the corresponding quarter last fiscal year.
Future Supply Chain Solution Ltd (FSCL) operating revenue fell 10.89% in the fourth quarter of last fiscal year to Rs 133.84 crore. During the period a year ago, the same amounted to Rs 150.20 crore.
According to the Future group company, the exceptional item for the quarter and year ended 31 March 2022 includes “the provision for expected credit loss taken on trade receivables in the amount of Rs 434.99 crore mainly due the admission of insolvency petitions against FRL”, the group’s largest debtor.
This coupled with other estimates like the impairment of the intercompany deposit given to Basuti Sales and Trading Private Ltd amounted to Rs 210 crore and the impairment of interest due on the above intercompany deposit amounted to Rs 27, 09 crore.
The March quarter and FY22 financial results of several Future Group companies, including FSCL, were delayed as they expressed an inability to call a board meeting in time due to vacancies on the of their respective boards of directors.
For the financial year ended March 31, 2022, FSCL had reported a net loss of Rs 697.90 crore. It had reported a net loss of Rs 184.36 crore for the financial year 2020-21.
Its operating revenue for the financial year 2021-22 was Rs 608.75 crore.
Last week, three listed companies of the Future Group led by Kishore Biyani, including FSCL, informed exchanges that they would file their claims with the Interim Resolution Professional (IRP) of the FRL.
On July 20, the Mumbai Bench of the National Company Law Tribunal (NCLT) ordered the opening of insolvency resolution proceedings against the debt-ridden FRL and dismissed objections raised by the trading giant Amazon electronics.
NCLT passed the order after clearing the petition filed by the Bank of India (BoI) following defaults by FRL, the flagship company of the Kishore Biyani-led group.
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