Tata Communications on Tuesday reported a net loss of Rs 33 86 crores for the first quarter ended June, 2015. The company had reported a net loss of Rs. 21.38 crores in the corresponding quarter of last fiscal, Tata Communications said in a filing to the BSE. Also Read - Budget 2018: Here is what the tech sector and startups are expecting from Government of India
Total income from operations though increased marginally to Rs. 5,206.27 crores for the reported quarter as compared to Rs. 5,111.72 crores last year. However, for the fiscal ended March 31, 2015, the company reported a net profit of Rs. 1.29 crores whereas total income from operations stood at Rs. 19,913.34 crores. The company said delay in filing its financial year-end accounts was due to one of its foreign subsidiaries, Neotel, and its associate companies being unable to finalize their audited accounts. Also Read - Tech spending in India to grow by 12% in 2018
Neotel continues to work with its auditors to resolve the outstanding issues and hopes to be in a position to approve its audited financial statements soon, the filing said. “Rather than delaying further the release of its consolidated financial statements, the company finalised its annual accounts using the management accounts of Neotel,” the filing said. “The issue at Neotel involves potential reportable irregularities identified by its statutory auditors in respect of a particular third party intermediary engaged with Neotel during the third quarter of FY15 in connection with a customer contract. Neotel’s Board then appointed an independent firm to investigate the matter,” the company said. Also Read - Alibaba to offer cloud services to Indian enterprises with Mumbai data center
Tata Communications said Neotel’s Board has advised it that based on the investigation, there has been no finding of corruption or illegal activities with the exception of misconduct by one employee, who is no longer with Neotel. “Pursuant to its obligations under the laws of South Africa, the matter has been referred to the appropriate authorities in South Africa,” the filing added.