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Airtel raises doubts over its ability to continue as 'going concern'

While the carrier has highlighted the need for significant additional financing - which includes accessing diversified sources across markets and currencies - to pay up the demands that the telecom department may raise, it has said that there can ...

, ET Bureau|
Updated: Nov 15, 2019, 09.45 AM IST
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Reuters
Airtel reuters

The company said that it is reviewing its options and remedies available.

Bharti Airtel has raised doubts over its ability to continue as a 'going concern' , saying it may not be able to raise additional funds to pay for more government dues on the back of the Supreme Court judgement on the definition of adjusted gross revenue (AGR).

While the carrier has highlighted the need for significant additional financing - which includes accessing diversified sources across markets and currencies - to pay up the demands that the telecom department may raise, it has said that there can be ‘no assurance’ that the company’s plan will be successful.

“The Group has an established track record of accessing diversified sources of finance across markets and currencies. However, there can be no assurance of the success of management's plans to access additional sources of finance to the extent required, on terms acceptable to Group, and to raise these amounts in a timely manner,” Bharti Airtel said in a statement to the exchanges Thursday evening.

“This represents a material uncertainty whereby, it may be unable to realize its assets and discharge its liabilities in the normal course of business, and accordingly may cast significant doubt on the Group's ability to continue as a going concern,” it added.

The Sunil Mittal led company has provisioned for Rs 34,260 crore as liabilities emanating from license fee and spectrum usage charge (SUC) on AGR, that comprise principal of Rs 8,747 crore, interest of Rs 15,446 crore, penalty of Rs 3,760 crore and interest on penalty of Rs 6,307 crore, as of September 30. This includes provisioning for license fee of Rs 16,815 crore and spectrum usage charge of Rs 11,635 crore.

The company said that it is reviewing its options and remedies available, “including but not limited to filing petitions before the Supreme Court and also seeking other reliefs, with others affected in the industry, from the government.”

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