Auto components maker Minda Corporation Ltd on Wednesday reported a consolidated loss after tax of Rs 299.77 crore in the fourth quarter ended March 31, on account of impairment charges of one of its arms that has filed for insolvency.
The company had posted a consolidated profit after tax of Rs 41.92 crore in the corresponding period of the previous financial year, Minda Corporation said in a regulatory filing.
The company said its board of directors on Wednesday decided to withdraw financial support to its wholly-owned subsidiary Minda KTSN Plastic Solutions GmbH Co & KG, Germany (MKTSN), pursuant to which MKTSN has filed for insolvency.
Accordingly, MKTSN has prepared its financial statements for the year ended March 31, 2020, "on the assumption that the fundamental accounting assumption of going concern is no longer appropriate", it said.
Consequently, the group has recorded an impairment charge of Rs 293.29 crore which has been presented as exceptional items in the statement of audited consolidated financial results in respect of goodwill relating to MKTSN and reduction in carrying value of property, plant and equipment and other assets of MKTSN, Minda Corporation said.
Revenue from operations during the quarter stood at Rs 697.93 crore as against Rs 771.39 crore in the year-ago period, it added.
For the full financial year 2019-2020, the company said its consolidated net loss was at Rs 199.81 crore. It had posted a net profit of Rs 169.22 crore in 2018-19.
Revenue from operations in 2019-20 stood at Rs 2,813.08 crore as compared to Rs 3,091.97 crore in 2018-19, the company said.