Future Life-style Fashions Internet Loss Widens To Rs 1,879 Crore

Future Life-style Fashions This autumn web loss at Rs 1,879 crore

Future Life-style Fashions Ltd on Tuesday reported a widening of its consolidated web loss to Rs 1,879.91 crore within the fourth quarter ended March 2022 on account of closure of shops and better bills.

The corporate had posted a consolidated web lack of Rs 149 crore within the January-March quarter a yr in the past, Future Life-style Fashions Ltd (FLFL) stated in a regulatory submitting.

Its income from operations through the quarter underneath overview was down 27.04 per cent to Rs 607.42 crore. It was at Rs 831.62 crore within the March quarter of FY21.

Throughout the quarter, whole bills have been increased at Rs 1,438.35 crore from Rs 984.05 crore within the year-ago interval, it stated.

The corporate stated it incurred losses primarily on account of “provision for diminution of investments, uncertain provision for receivables, the decrease gross sales volumes, finance prices and depreciation”.

The distinctive gadgets for the quarter and yr ended March 2022 embrace provision for diminution of investments aggregating to Rs 480.64 crore and provision for impairment for inter-corporate deposits and curiosity receivables aggregating to Rs 282.51 crore.

Its present liabilities “exceeded its present belongings (together with belongings held on the market)” by Rs 1,180.66 crores as of the year-end date.

As on March 31, 2022, the corporate stated 34 Central shops and 78 Model Manufacturing facility shops have been non-operational.

“These shops have been contributing roughly 64 per cent of whole income from operations of the corporate for FY 2021,” it stated.

The results of FLFL together with different listed entities of the debt-ridden Future Retail has been delayed because of the vacant slot of their respective board.

FLFL together with these corporations on Might 25 had expressed its incapacity to convene a board assembly earlier than Might 30 to approve their monetary outcomes for the March quarter and FY22 on account of vacant positions on its boards.

Because the end result, FLFL knowledgeable it has been unable to service the obligations in the direction of the compensation of principal quantity on loans/working capital services availed by the corporate from the banks as agreed underneath the OTR (One-Time Restructuring) plans.

“Foundation the identical, the lead financial institution and State Financial institution of India have categorized the accounts of the corporate within the system as Non-Performing Belongings (NPAs) on Might 31, 2022,” it stated.

Underneath the OTR preparations, FLFL has debt servicing obligations aggregating to Rs 505.08 crore inside the subsequent 12 months, which contains compensation of the principal quantity of long-term money owed amounting to Rs 360.01 crore and short-term borrowings of Rs 145.07 crore.

“The corporate can be taking mandatory steps to additional restructure its money owed and fulfil different commitments as agreed with the lenders underneath the OTR. In the meantime, the lenders have allowed the corporate to hold on its day-to-day operations underneath the Holding on Operations within the account, together with monitoring and launch of the operational funds underneath the stated association,” it stated.

FLFL has in-house retail chains Central and Model Manufacturing facility, Unique Model Shops (EBOs) and different Multi-Model Shops (MBOs of almost a dozen attire labels, together with – Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana in its portfolio.

For the monetary yr ended March 2022, FLFL’s income from operations was at Rs 2,993.93 crore.

FLFL was a part of the 19 group corporations working in retail, wholesale, logistics and warehousing segments, which have been presupposed to be transferred by Kishore Biyani-led Future Group to Reliance Retail as a part of a 24,713 crore deal introduced in August 2020.

The deal was referred to as off by the billionaire Mukesh Ambani-led Reliance Industries Ltd in April after it didn’t get lenders’ help of the respective corporations.

Following this, the Kishore Biyani-led retail empire is in deep monetary hassle.

Its flagship agency Future Retail Ltd is already going through an insolvency petition from a lender, filed a petition earlier than the Mumbai bench of the Nationwide Firm Legislation Tribunal. PTI KRH RKL SHW