IVRCL has posted a loss of ₹354.47 crore for the second quarter ended September 30, 2016, against a loss of ₹306.54 crore for the corresponding quarter on a standalone basis.

The Hyderabad-based infrastructure company income from operations was lower significantly at ₹501.45 crore during the second quarter against ₹641 crore for the corresponding quarter previous fiscal.

The debt-laden company had closed last fiscal ended March 31, 2016, with a loss of ₹496.62 crore against income of ₹1261.29 crore.

In the accompanying notes to results, the company’s chartered accountants Chaturvedi & Partners stated that the financial statements have been prepared on a going concern. During the quarter (second), it has incurred a net loss of ₹354.47 crore and has accumulated losses of ₹2517.55 crore as on September 30, 2016. The company net worth has eroded.

The auditors further observed that the company requires to generate additional cash flows for operations as well as creditors, lenders and other statutory obligations.

In view of these factors, the appropriateness of assumption of the going concern is dependant upon sale/divestment of investments and is dependant on the company's ability to raise requisite finance/generate cash flows from operations to meet its obligations.

With regard to guarantees and cash receivables, the auditors stated there is material uncertainty over the realisability of these guarantees, unbilled revenues, trade receivables and with-held amount aggregating ₹1674.53 crore, which are subject matters of various litigation/disputes with the customers and contractors.

Rajeev N Mehra has been appointed as nominee director of State Bank of India (Monitoring Institution under CDR mechanism) by the board of directors.

IVRCL shares closed at ₹4.67, down 3 per cent.

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