 "Future Supply Chain Solutions reports Q4 net loss of Rs 624.22 crore")
Future Supply Chain Solutions Ltd on Monday reported a net loss of Rs 624.22 crore for the fourth quarter ended March this year.
The loss was mainly on account of credit loss from group firm Future Retail Ltd (FRL) which is now facing insolvency proceedings.
The company reported a net profit of Rs 47.87 crore before exceptional items and tax during the January-March quarter, according to a regulatory filing.
It had reported a net loss of Rs 18.92 crore for the corresponding quarter of the last fiscal.
Future Supply Chain Solution Ltd (FSCL) revenue from operations fell 10.89 per cent in the fourth quarter of the last fiscal to Rs 133.84 crore. In the year-ago period, the same stood at Rs 150.20 crore.
According to the Future group firm, the exceptional item for the quarter and year ended March 31, 2022, includes "expected credit loss provision taken on trade receivables amounting to Rs 434.99 crore mainly on account of admission of insolvency petitions against FRL", the largest debtor of the group.
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This coupled with other estimates as impairment for inter-corporate deposit given to Basuti Sales and Trading Private Ltd amounted to Rs 210 crore and impairment for interest due on the above inter-corporate deposit stood at Rs 27.09 crore.
Financial results for the March quarter and FY22 of several Future group firms, including FSCL, have been delayed as they had expressed their inability to convene a board meeting on time due to vacant positions on their respective boards.
For the financial year ended March 31, 2022, FSCL had reported a net loss of Rs 697.90 crore. It had reported a net loss of Rs 184.36 crore for FY 2020-21.
Its revenue from operation for FY 2021-22 was at Rs 608.75 crore.
Last week, three listed firms of the Kishore Biyani-led Future Group, including FSCL, informed exchanges that they would file their claims before the Interim Resolution Professional (IRP) of FRL.
On July 20, the Mumbai bench of the National Company Law Tribunal (NCLT) ordered initiating insolvency resolution proceedings against the debt-ridden FRL and dismissed objections raised by e-commerce major Amazon.
NCLT passed the order after allowing the petition filed by Bank of India (BoI) following loan defaults by FRL -- the flagship firm of the Kishore Biyani-led group.
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