Non-banking financial services company Religare Enterprises on Wednesday reported widening of consolidated loss to Rs 588 crore for the March quarter.
The debt-ridden company had posted a net loss of Rs 67 crore in the same period last fiscal, Religare Enterprises said in a regulatory filing. The total income of the company on a consolidated basis increased to Rs 955.56 crore during the quarter as against Rs 761.57 crore in the same period of 2020-21.
On a standalone basis, the company’s loss also widened to Rs 6.67 crore for the January-March period as compared to Rs 5.54 crore in the same quarter in the preceding fiscal.
Religare Finvest Limited (RFL), a subsidiary of the company, is facing significant asset-liability mismatches as a result of misappropriation and embezzlement of its funds under the control of the erstwhile promoters, it said.
“RFL has made defaults in repayment of its obligation towards its lenders and an amount of Rs 534,407.86 lakhs is overdue as of March 31, 2022 (Rs 329,602.94 lakhs as at March 31, 2021) towards borrowings and interest thereon,” it said.
Further, RFL has continued to incur losses, which has resulted in erosion of its net worth and its Capital to Risk Weighted Assets Ratio (CRAR) is below the prescribed limit.
RFL has been barred from undertaking fresh business as it is under a corrective action plan of the Reserve Bank of India since January 2018 due to its weak financial health.
The company has been in financial distress due to the alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh. Multiple investigative agencies are probing the case of financial bungling of about Rs 4,000 crore. PTI DP MR
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