The company had reported a net loss of Rs 3,301 crore in the fourth quarter of 2018-19 (Q4FY19), its biggest ever, one-time expenses of Rs 8,481 crore. The exceptional expense was related to defence business impairment, invocation of pledged shares, and loss at its power subsidiary, according to the company.
The firm's auditors said they were unable to give an audit opinion on the annual results and also raised doubts about the company and some of its subsidiaries' ability to continue as a going concern.
The auditors have further raised a going concern on RInfra, Reliance Naval and Engineering, the company’s Mumbai metro subsidiary, and a few other subsidiaries. On RInfra at the standalone level, the auditors added, “Relating to losses incurred during the year and certain loans for which the company is guarantor indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.”
Besides RInfra, Reliance Capital
(down 10 per cent at Rs 69), Reliance Naval and Engineering (12 per cent at Rs 5.45), Reliance Power (7 per cent at Rs 4.71) and Reliance Communications (5 per cent at Rs 1.40) and Reliance Home Finance (5 per cent at Rs 13.60), other ADAG companies were down up to 12 per cent on the BSE. In comparison, the S&P BSE Sensex was down 0.41 per cent at 39,289 points at 09:45 am.