Mumbai-based real estate developer DB Realty posted a standalone net loss of R9.53 crore in the third quarter ended December 31, 2012, against a standalone net profit of R27.5 crore last year.
On account of share of loss from investment in partnership firms, the company’s standalone total income during the quarter was at a negative 1.6 crore against a positive income of nearly R29 crore in the yearago period.
The above has also been taken note of in the five points listed by the company’s chartered accountants, Haribhakti & Co, under ‘drawing attention to certain matters’, in a separate notice sent to the Bombay Stock Exchange, on Saturday.
The accountants say: “Guarantees issued and securities provided to banks and financial institutions on behalf of various entities aggregating R2,620 crore as on December 31, 2012, which are significant in relation to the net-worth of the company. In the opinion of the company, these are not expected to result in any financial liability to the company”.
Additionally, they say investments aggregating to R204.6 crore and loans and advances aggregating to R304.7 crore as on December 31, 2012, are “in/to certain subsidiaries, associates and joint ventures, which have incurred losses and have negative net worth… Further, the company has invested R24.1 lakh in one of the joint ventures”. DB has explained to accountants that these “entities are in early stages of real estate development and the investments/loans and advances are considered good and recoverable”.