MUMBAI: Repayment delays and asset impairments at Reliance Power are adding to short-term debt concerns at the Anil Dhirubhai Ambani Group (ADAG), where other businesses lately faced financial stress. Reliance Power has booked impairment and write-offs worth Rs 4,170 crore in the March quarter. This is a one-time exercise. But inability to pay installments on the 125-mw Rajasthan solar power plant, and failure to meet milestones relating to the Samalkot gas-based unit resulted in the reclassification of some Reliance Power loans. That led to a greater mismatch between current liabilities and current assets, causing concern over the company’s ability to repay short-term debt. As on March 31, the company’s current liabilities rose to Rs 18,208.45 crore, widening the gap from current asset of Rs 5,959.28 crore. “We have undertaken a one-time cleanup by accounting for write-off and impairment. The reclassification of loans led to a mismatch but we are confident that there will not be any cash flow issue as our operating assets continue to perform well and we are aiming to monetise some assets. We are also talking to lenders of these loans to get them restructured,” Shrikant Kulkarni, president (business), told ET. Late Friday, the company reported net… Read full this story
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