AGR hit: Vodafone Idea Q2 loss at Rs 50,921 crore
New Delhi, Nov 14: Hit hard by the unpaid statutory dues, telecom operator Vodafone Idea on Thursday posted a colossal Rs 50,921 crore loss for the second quarter ended September 30, and said it is in the process of filing a review petition on the adjusted gross revenue matter.
This is the highest ever quarterly loss posted by any Indian company in recent memory.
Vodafone Idea said its ability to continue as going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy.
The SC order on Adjusted Gross Revenue (AGR) matter "has significant financial implications for the industry", VIL said in a statement.
Its total loss stood at Rs 50,921 crore in September quarter, against Rs 4,874 crore loss in the year-ago period. Its revenue rose 42 per cent to Rs 11,146.4 crore during the second quarter this year.
The company has estimated liability of Rs 44,150 crore post the apex court order, and made provision of Rs 25,680 crore in the second quarter this fiscal.
Airtel, Vodafone Idea and other telecom operators have to pay the government a whopping Rs 1.4 lakh crore following the recent Supreme Court order that has sent shock waves through the industry which is already grappling with losses and billions of dollars in debt.
The Supreme Court, last month, upheld government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.
As per latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.
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Ramanagara (Karnataka), Apr 26: JD(S) leader and former Chief Minister H D Kumaraswamy on Friday alleged that cash and gift vouchers were distributed in Bengaluru Rural constituency, especially in Kanakapura Taluk, a charge rejected by Deputy Chief Minister D K Shivakumar.
D K Suresh, brother of Shivakumar, is seeking re-election from the seat for the fourth time.
The NDA, of which JD(S) is a part, has fielded cardiologist Dr C N Manjunath -- brother-in-law of Kumaraswamy and son-in-law of former Prime Minister H D Deve Gowda -- who is contesting on BJP ticket.
As the elections were in progress in 14 constituencies in the state, Kumaraswamy alleged that some supporters of BJP and the JD(S), were attacked in Kanakapura Taluk and their shirts were torn off.
"Guarantee cards (gift vouchers) were distributed with which people can make purchases up to Rs 10,000. When our boys made a noise, they were attacked," he alleged.
Money was also distributed since Thursday night, he said, adding that in Kunigal Taluk, a man died by suicide after Congress workers "attacked, pestered and threatened him."
"Even after giving complaints to the Election Commission, no action was taken," Kumaraswamy said, and added sarcastically: "I want to tell the EC to allow people to openly allow distribution."
Dismissing the allegation, Shivakumar accused Kumaraswamy of specialising in blame shifting.
Speaking to reporters after casting his vote at his birthplace Dodda Aalahalli in Kanakapura Taluk in Ramanagara district, he said, "It is Kumaraswamy’s habit to shift blame to others after committing a crime. He distributes gift cards and money to voters but accuses the Congress of doing so."
Regarding the allegation that Congress is giving gift coupons worth Rs 10,000 in Lulu Mall, Shivakumar said, "Let him (Kumaraswamy) go and lodge a complaint with the Election Commission. It is easy to do hit-and-run without any proof."
