IVRCL Ltd has posted a loss of ₹151.85 crore for the first quarter ended June 30, 2016 as against a loss of ₹ 189.65 crore for the corresponding quarter last year on a standalone basis.

The Hyderabad-based infrastructure company posted income of ₹448 crore for the first quarter this fiscal as against ₹620.28 crore shown during the corresponding quarter last year.

In its statement filed with the BSE, the company informed that it has adopted Indian Accounting Standards and there is a possibility that these quarterly financial results may require adjustment before constituting the final Ind AS financial statement as of the year ending March 31, 2017.

Auditors Chaturvedi & Partners in their audit qualifications have expressed substantial erosion of net worth of the company due to losses during the quarter aggregating to ₹ 153.58 crore and accumulated losses aggregating to ₹ 2,040 crore as of March 31, 2016. The company requires to generate additional cash flows for operations as well as creditors, lenders and other statutory obligations.

The company expressed it is confident of implementing the divestment plan an approved restructuring scheme with lenders and meeting its obligations.

The auditors have indicated that they were unable to comment on some of the statements made by the company with regard to equity investments and loans in Hindustan Dorr Oliver Ltd and advances of ₹ 428.93 crore extended to subsidiaries. Therefore, they mentioned “We are unable to comment on the extent to which the carrying amount of such loans and advances is recoverable.”

The auditors have treated an amount of ₹ 258.50 crore as contingent liability.

IVRCL shares closed at ₹5.41, up 3.24 per cent at BSE.

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