Mumbai: Monnet Ispat and Energy Ltd (MIEL) Monday reported a net loss of Rs 2,859.56 crore for the quarter ended September 2018 due to impairment of the value of its assets.
Its net loss was Rs 353.24 crore in the year-ago quarter, said MIEL, a joint venture company of AION and JSW Steel Ltd.
The company’s total income, however, increased to Rs 423.03 crore in July-September quarter of 2018-19 fiscal as compared to Rs 318.39 crore in the corresponding period of the previous year.
Its net loss widened sharply because of an exceptional item of Rs 2,772.81 crore on account of impairment of the value of its assets.
This includes impairment of property plant and equipment amounting to Rs 2,440.93 crore and impairment of investments, inventories, receivables, current and non-current assets aggregating to Rs 1,558.37 crore considered not realisable. It also wrote back its certain liabilities from the book totalling Rs 1,226.49 crore.
Monnet Ispat, once one of the country’s foremost steelmakers, ran a successful coal-based sponge iron plant with an annual capacity of 1.5 million tonnes in Chhattisgarh.
It ran into problems when coal mines attached to the plant were cancelled in 2014 after a Supreme Court order. Crashing steel prices on account of Chinese dumping further aggravated its crisis and resulted into bankruptcy proceedings.
Following insolvency proceedings, AION-JSW consortium accrued the company.