It had given time till February 28, 2021, to the companies for the repayment of the outstanding "considering the widespread economic fallout caused by the COVID-19 pandemic and the resultant lack of liquidity in the market".
Batteries and flashlights major Eveready Industries India Ltd on Friday reported a consolidated net loss of Rs 442.53 crore in the fourth quarter ended March 31, 2021, hit by higher expenses and exceptional adjustments towards provision for outstanding inter-corporate deposits and write-offs.
The company had posted a consolidated net profit of Rs 63.07 crore in the same quarter of the previous financial year, Eveready Industries India Ltd said in a regulatory filing.
Consolidated revenue from operations during the quarter under review stood at Rs 272.63 crore as against Rs 224.08 crore in the year-ago period.
Total expenses during the fourth quarter stood at Rs 249.81 crore as compared to Rs 219.81 crore in the same period a year ago.
For the fiscal ended March 31, 2010, the company posted a consolidated net loss of Rs 311.52 crore. It had posted a consolidated net profit of Rs 178.29 crore in the financial year of 2019-20.
Consolidated revenue from operations in the financial year 2020-21 stood at Rs 1,248.99 crore as against Rs 1,221.09 crore in the financial year of 2019-20, it said.
Eveready Industries India said as of March 31, 2021, it had inter-corporate deposits given to certain promoter group companies and recoverable amounting to Rs 489.29 crore and interest thereon amounting to Rs 68.42 crore lying outstanding.
It had given time till February 28, 2021, to the companies for the repayment of the outstanding “considering the widespread economic fallout caused by the COVID-19 pandemic and the resultant lack of liquidity in the market”.
“On the expiry of the aforesaid timeline, the company has initiated legal proceedings for recovery of certain amounts due, in respect of inter-corporate deposits and other recoverables from certain companies, along with accrued interest thereon,” it said.
Moreover, it also has an outstanding amount of Rs 72 crore which was paid as advance to a company after a Memorandum of Understanding (MOU) was executed on September 26, 2018, for assignment of leasehold rights of property, till September 30, 2020.
“On the expiry of the aforesaid timeline, the company has cancelled the MoU and initiated legal proceedings for the recovery of the amount due in respect of the aforesaid capital advance from the company, along with interest thereon,” it added.
Eveready Industries India said while it would make efforts to recover the outstanding from the companies, in view of the aforesaid legal development it has decided to “make a provision for the entire outstanding amount of inter-corporate deposits and recoverables”.
Moreover, it has also chosen to “write-off” the entire amount of interest accrued on such deposits and the amount of capital advance, “without prejudice to any of the legal rights and remedies to recover all the due amounts”.
“Accordingly, these adjustments have been disclosed as exceptional items,” it said adding the adjustments have no impact on its operations.