New Delhi:

Future Lifestyle Fashions Ltd on Tuesday reported a widening of its consolidated web loss to Rs 1,879.91 crore within the fourth quarter ended March 2022 because of closure of retail outlets and better bills.

The corporate had posted a consolidated web lack of Rs 149 crore within the January-March quarter a 12 months in the past, Future Lifestyle Fashions Ltd (FLFL) mentioned in a regulatory submitting.

Its income from operations all through the quarter below evaluate was once down 27.04 consistent with cent to Rs 607.42 crore. It was once at Rs 831.62 crore within the March quarter of FY21.

During the quarter, overall bills have been upper at Rs 1,438.35 crore from Rs 984.05 crore within the year-ago length, it mentioned.

The corporate mentioned it incurred losses basically because of “provision for diminution of investments, in doubt provision for receivables, the decrease gross sales volumes, finance prices and depreciation”.

The remarkable pieces for the quarter and 12 months ended March 2022 come with provision for diminution of investments aggregating to Rs 480.64 crore and provision for impairment for inter-corporate deposits and passion receivables aggregating to Rs 282.51 crore.

Its present liabilities “exceeded its present property (together with property held on the market)” through Rs 1,180.66 crores as of the year-end date.

As on March 31, 2022, the corporate mentioned 34 Central retail outlets and 78 Brand Factory retail outlets have been non-operational.

“These retail outlets had been contributing roughly 64 consistent with cent of overall income from operations of the corporate for FY 2021,” it mentioned.

The results of FLFL along side different indexed entities of the debt-ridden Future Retail has been behind schedule because of the vacant slot in their respective board.

FLFL along side the ones firms on May 25 had expressed its incapability to convene a board assembly earlier than May 30 to approve their monetary effects for the March quarter and FY22 as a result of vacant positions on its forums.

As the end result, FLFL knowledgeable it’s been not able to carrier the tasks against the compensation of predominant quantity on loans/running capital amenities availed through the corporate from the banks as agreed below the OTR (One-Time Restructuring) plans.

“Basis the similar, the lead financial institution and State Bank of India have categorized the accounts of the corporate within the machine as Non-Performing Assets (NPAs) on May 31, 2022,” it mentioned.

Under the OTR preparations, FLFL has debt servicing tasks aggregating to Rs 505.08 crore throughout the subsequent twelve months, which accommodates compensation of the predominant quantity of long-term money owed amounting to Rs 360.01 crore and momentary borrowings of Rs 145.07 crore.

“The corporate can be taking essential steps to additional restructure its money owed and fulfil different commitments as agreed with the lenders below the OTR. Meanwhile, the lenders have allowed the corporate to hold on its daily operations below the Holding on Operations within the account, together with tracking and liberate of the operational bills below the mentioned association,” it mentioned.

FLFL has in-house retail chains Central and Brand Factory, Exclusive Brand Outlets (EBOs) and different Multi-Brand Outlets (MBOs of just about a dozen attire labels, together with – Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana in its portfolio.

For the monetary 12 months ended March 2022, FLFL’s income from operations was once at Rs 2,993.93 crore.

FLFL was once a part of the nineteen workforce firms running in retail, wholesale, logistics and warehousing segments, which have been intended to be transferred through Kishore Biyani-led Future Group to Reliance Retail as a part of a 24,713 crore deal introduced in August 2020.

The deal was once referred to as off through the billionaire Mukesh Ambani-led Reliance Industries Ltd in April after it didn’t get lenders’ fortify of the respective firms.

Following this, the Kishore Biyani-led retail empire is in deep monetary hassle.

Its flagship company Future Retail Ltd is already dealing with an insolvency petition from a lender, filed a petition earlier than the Mumbai bench of the National Company Law Tribunal. PTI KRH RKL SHW