India’s trusted news broadcaster, New Delhi Television Limited (NDTV) has run into financial turmoil after un-audited financial results showed the company has incurred a net loss of Rs 10.16 crore and Rs 1.17 crore for the quarter and six months ending September 30, 2019, respectively.
Exchange4Media reports that the company’s current liabilities have exceeded its current assets by Rs 88.92 crore. A statement by NDTV’s auditing firm BSR & Associates LLP said, “These conditions indicate that a material uncertainty exists that may cast significant doubt on the ability of the Company to continue as a going concern. Management has stated that the Company has initiated certain strategic and operational measures to mitigate the uncertainty.”
Elaborating on NDTV’s financial woes, Manish Malhotra, CA, CMA was cited in the publication saying, “The company is facing reduction in current assets and increase in current liabilities in the standalone balance sheet for last three months. Due to reduction of income with increase of operating cost and salary they show decline in profitability. The company has booked a net loss and if this continues it may force the company to reduce operational cost.”
He added, “The gross revenue reported a decline by approximately 28 per cent in Quarter 2 compared to the same quarter in the last financial year and by 38 per cent compared to the first quarter of the current financial year. The total half year revenue for the current financial year has reduced to Rs 11,811 lakh from Rs 13,388 lakh registered in the six months of the last financial year.”
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