DCHL net loss at Rs 10.4 bn; debt stands at Rs 40.4 bn

DCHL net loss at Rs 10.4 bn; debt stands at Rs 40.4 bn


MUMBAI: Debt-ridden media house Deccan Chronicle Holding Limited (DCHL) has a total liability of Rs 40.4 billion as of 30 September, 2012, as per the financial results announced by the company.

The company, which had extended its financial year by six months to 30 September, has liabilities of Rs 5.59 billion for the financial year ended 31 March 2011.

DCHL disclosed that it has short-term borrowings of Rs 37.5 billion, trade payables of Rs 1.5 billion besides other liabilities of Rs 1.3 billion.

The company also has long-term borrowings of Rs 1.47 billion besides other long-term provisions of Rs 1.02 billion. It also has other long-term liabilities of Rs 79.3 million.

The company posted a net loss of Rs 10.4 billion for the 18-month period ended 30 September 2012. DCHL had posted a net profit of Rs 1.62 billion for the fiscal ended 31 March 2011.

DCHL, which publishes English daily Deccan Chronicle, reported net sales of Rs 7.86 billion for the 18-month period ended 30 September 2012. The net sales in the previous fiscal was Rs 9.7 billion.

Expenses stood at Rs 12.3 billion for the fiscal under review on account of sharp rise in consumption of materials and cost of purchases and services. It was Rs 7.35 billion in the corresponding fiscal.

For the quarter ended 30 September, the company posted a net loss of Rs 1 billion on net sales of Rs 1.4 billion. The company had posted a net profit of Rs 210 million in the same quarter of the previous fiscal on net sales of Rs 2.25 billion.

The company also revealed that it had offered shares as collateral security to some of the lenders for the financial assistance provided to the company and some of them have invoked the pledge and appropriated the same against the dues payable to them.

As a result, the promoter shareholding in the company has reduced to 38.4 per cent from 73.83 per cent as of 30 September.

The company said that its fixed assets including intangible asset under development (brand) amount to Rs 29 billion and liabilities included an amount of Rs 39.8 billion to the lenders as a result of restructuring of the operations and recasting of the financial statements.

The media company also said it hopes to recover damages from BCCI for the termination of its IPL franchise Deccan Chargers. However, the same has not been recognised in the books of accounts as it is a contingent asset and based on the principle of prudence.

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