Vodafone Idea to pay in next few days, informs exchange
New Delhi: Vodafone Idea is currently assessing the AGR dues and will pay this in the next few days, the company has said in an exchange filing.
“We wish to inform that post the hearing yesterday, the company has received letters from the Department of Telecommunications (DoT) directing immediate payment,” Vodafone Idea said in a regulatory filing.
“The company proposes to pay the amount so assessed in the next few days. As disclosed in the company’s financial statements for the quarter ending December 31, 2019, the company’s ability to continue as a going concern is essentially dependent on a positive outcome of the application for modification of the Supplementary Order”, it said.
The company is currently assessing the amount that it will be able to pay to DoT and it proposes to pay the amount so assessed in the next few days, Vodafone Idea said.
Though the company said it will pay up but the fact that it has again mentioned the company’s ability to continue as a going concern is essentially dependent on a positive outcome of the application for modification of the Supplementary Order, also raises doubts over its long term ability over sustaining on account of huge losses and paying such large amount of dues.
The company did not disclose how it plans to raise the money and how much it would pay. This comes after the Supreme Court on Friday slammed mobile service operators and the department of telecommunications (DoT) for failing to comply with its verdict, which mandated telecom companies to pay the adjusted gross revenue (AGR) dues of over Rs 1 trillion to the DoT by January 23.
This came as a fresh blow for Vodafone Idea and doubts were being raised over its continuation as a going concern. As per DoT calculations, Airtel has to pay Rs 35,500 crore, Tata Teleservices has to pay Rs 14,000 crore and Vodafone Idea’s dues are Rs 53,000 crore.
Airtel told DoT on Friday it will deposit Rs 10,000 crore by February 20 and for rest before the next hearing of March 17. But much of the focus is on Vodafone Idea as its extremely weak financial position with the latest Q3 losses over Rs 6,000 crore, Rs 1.20 lakh crore debt, declining customer base and revenues. Its chairman K.M. Birla has sounded out multiple times that if it doesn’t get any relief from government it will have to look at shutting operations. One of the parents of VIL – UK-based Vodafone has already ruled out any equity infusion in VIL.
Vodafone Idea owes DoT over Rs 53,000 crore.