Does NDTV’s un-audited financial report spell trouble for the broadcaster?
As per the statement of financial results, for the quarter and six months ending Sept 30, 2019, New Delhi Television Limited has incurred a net loss of Rs 10.16 crore and Rs 1.17 crore for the period
The un-audited financial results of New Delhi Television Limited (NDTV ) on a standalone and consolidated basis for the quarter and six months ending September 30, 2019, show the company has incurred a net loss of Rs 10.16 crore and Rs 1.17 crore for the period.
The report also says that the company’s current liabilities have exceeded its current assets by Rs 88.92 crore. “These conditions indicate that a material uncertainty exists that may cast significant doubt on the ability of the Company to continue as a going concern. Management has stated that the Company has initiated certain strategic and operational measures to mitigate the uncertainty,” a statement by NDTV’s auditing firm BSR & Associates LLP said.
Explaining the financial situation of the broadcaster, Manish Malhotra, CA, CMA said: “The company is facing reduction in current assets and increase in current liabilities in the standalone balance sheet for last three months. Due to reduction of income with increase of operating cost and salary they show decline in profitability. The company has booked a net loss and if this continues it may force the company to reduce operational cost.”
“The gross revenue reported a decline by approximately 28 per cent in Quarter 2 compared to the same quarter in the last financial year and by 38 per cent compared to the first quarter of the current financial year. The total half year revenue for the current financial year has reduced to Rs 11,811 lakh from Rs 13,388 lakh registered in the six months of the last financial year,” Malhotra added.
The Delhi-based group was earlier in the news when SEBI barred promoters of the channel - Radhika Roy and Prannoy Roy - from holding any management position in the network for two years. The promoters of NDTV have also been barred from accessing the securities market for two years.
This action had been taken for alleged violation of insider trading regulations. Earlier showcase notices, dated March 14, 2018, were sent to the three promoters - Prannoy Roy, Radhika Roy and RRPR Holdings Pvt. Ltd. - in the case. The enquiry was conducted by SEBI after received complaints dated August 26, 2017, December 26, 2017, and a representation dated October 24, 2017 from Quantum Securities Pvt. Ltd., a shareholder of NDTV.
The complaints alleged that RRPR Holdings Pvt. Ltd., Prannoy Roy and Radhika Roy, who are promoters as well as directors of NDTV, had violated the provisions of the Securities and Exchange Board of India Act, 1992 and the rules and regulations made thereunder by omitting to disclose material information to the shareholders of NDTV about loan agreements entered into by them.
exchange4media reached out to NDTV Promoter Prannoy Roy but did not receive any response till the time of filing this report.For more updates, be socially connected with us on
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