Reliance Infocomm Writes Off Rs 4,500 Cr

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Reliance Infocomm Writes Off Rs 4,500 Cr

Reliance Infocomm has written off nearly Rs 4,500 crore to clean up its balance sheet ahead of the listing of Reliance Communication Ventures.

The decision was taken to banish any apprehension of the investors over the strength of the company’s finances after the aggressive marketing schemes of the past few years.

The write-offs include remaining bad debts, the inventory losses arising out of its handset sales and for any penalties that may arise due to disputes with the Government. Infocomm’s networth after the write-off has fallen to about Rs 12,000 crore from about Rs 16,500 crore.

RCVL, which holds Reliance Industries stakes in Reliance Infocomm, Reliance Communication Infrastructure and Reliance Telecom, is expected to be listed anytime over the next two months after it gets the nod from the stock exchanges and issues its shares to all RIL shareholders.

http://www.efytimes.com/fullnews.asp?edid=9531&magid=14