Tatas add Rs 8,090 crore towards telcom liabilities

Tata Sons has recognised a provision of ₹8,090 crore for its telecom unit during the year ended March, taking the total provision for gross liabilities pertaining to adjusted gross revenue (AGR) dues of Tata Teleservices to ₹18,490 crore. “The company infuses additional funds in TTSL (Tata Teleservices) as and when it deems appropriate,” the Tata Group holding company said in its latest annual report.Tata Sons owns 74.5% stake in Tata Teleservices that currently offers connectivity and communications solutions to enterprises. The company had sold its consumer mobility business to Bharti Airtel in a ‘cash free debt free deal’ that got the telecom department’s approval last year.The SC had last month rejected a plea by Vodafone Idea (Vi), Bharti Airtel and Tata Teleservices for re-computation of their AGR-related dues to the government. The court had earlier given the three telecom providers a 10-year timeline to pay their outstanding AGR dues in 10 instalments. Tata Sons did not comment on the matter.₹40,000-CR BOND ISSUETata Sons is seeking shareholder approval to raise ₹40,000 crore via bonds and non-convertible debentures to invest in new businesses and future growth plans. The group is committing big funds into Tata Digital, Tata Electronics, and its infrastructure and financial services verticals.Tata Sons’ revenue from operations for 2020-21 slumped to ₹9,460.24 crore from ₹24,770.46 crore in the previous year. Its dividend income was higher in FY20 due to a special dividend received from a subsidiary. But its other income stood at ₹10,138.11 crore for FY21 against ₹125.93 crore for 2019-20. A substantial part of the other income last year was profit from buyback of shares by a subsidiary. Its profit after tax stood at ₹6,511.63 crore last year against ₹2,679.75 crore in FY20.The company’s top ten borrowings stood at ₹22,304.89 crore at the end of FY21. The holding firm’s auditors have flagged material uncertainty related to going concern in respect of Tata Steel Europe and Air Asia (India). “The existence of material uncertainty may cast significant doubt on Air Asia’s ability to continue as a going concern following the accumulation of losses and full erosion of its net worth. The current liabilities exceed the current assets by ₹2,108.99 crore,” the annual report stated.The impact of Covid-19 pandemic was severe on Tata Steel Europe as well. It will have to access group company support to meet its obligations as they fall due. 85603807

from Economic Times https://ift.tt/3kivK2I
via IFTTT