New Delhi : Auditors of Anil Ambani-led Reliance Naval and Engineering have raised doubts about the company’s ability to “continue as a going concern”.
In its notes to the company’s 2017-18 earnings statement, auditors Pathak HD & Associates listed cash losses, erosion of network, loans being called back by secured lenders, current liabilities being substantially higher than assets and winding up petitions being filed by few operating creditors to raise its doubts.
“These conditions indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue as going concern,” the auditor said in the note.
The shares of the firm slumped 13.33 per cent to end at Rs 23.40 on BSE.
The assumption of going concern depends upon the approval of the company’s bankruptcy-related resolution plan by secured lenders, its ability to raise finance, generation of cash flows in future to meet obligations and earning profits in future, it said.