Latest News | Mcleod Russel's Liabilities Exceed Assets, Says Auditor

Kolkata, Sep 15 (PTI) The auditor to debt-laden tea producer Mcleod Russel has said the company's current liabilities have exceeded its assets, flagging an "uncertainty about its ability to continue as a going concern".

"The company's current liabilities exceeded its current assets. Funds obtained by borrowing and utilised for providing funds to other companies have become unserviceable primarily due to non-repayment of outstanding amounts by those companies where funds were given," the auditor Lodha & Co said in its review report in the tea producer's first-quarter results statement.

Also Read | Facebook's 'Oculus Quest 2' VR Headset Revealed, Watch Video.

The auditor also said that this has resulted in "insufficiency" of McLeod's resources for meeting its obligations.

"These conditions indicate the existence of a material uncertainty about the company's ability to continue as a going concern," it said.

Also Read | Kalyan Singh Health Update: Former Uttar Pradesh CM’s Condition is Stable, Says Hospital.

The Williamson Magor Group company had on Monday reported widening of its consolidated net loss to Rs 90.5 crore in the April-June quarter of the current fiscal from Rs 11.6 crore in the year-ago period.

The auditor also said that the company has taken various measures to overcome the financial constraints, which inter-alia include reduction in operational costs and monetising the company's or the group's assets.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)