Deccan Chronicle Holdings Limited (DCHL) today reported a net loss of Rs 3.65 crore for the quarter ended December 31, 2013.
The company had reported Rs 2.21 crore net loss during the corresponding period in the previous fiscal. Total income from operations was down by nearly 13 per cent to 89.3 crore during the October-December quarter.
The beleaguered city-based publishing house reported Rs 102.32 crore income during the same quarter in the previous year, DCHL said in a filing with bourses. "Some of the lenders and creditors of the company have filed petitions/legal suits/complaints petitions before debt recovery tribunals and various courts/other forums for the recovery of dues and also initiated action.
"The management is taking necessary legal recourse to defend the company in these cases and as the ultimate outcome is not known, no provision has been made for any damage/claim over and above the dues appearing in the books of account," DCHL said in the filing.
DCHL, which is engaged in printing and publishing of 'Deccan Chronicle', 'Financial Chronicle', 'Andhra Bhoomi' and 'Asian Age' newspapers, is facing rough weather after some lenders of the city-based company filed complaints in various courts and forums for alleged default of payments.
The net worth of the company has completely eroded and turned negative as per the audited financial statements for the period ended June 30, 2013 due to which the company has become a sick industrial company, DCHL further said.
As a result of lenders invoking the pledge of shares made, the shareholding of the DCHL promoters has gone down to 32.66 per cent as on December 31, 2013. The promoters have disputed the invocation of the pledge and appropriation of the value by the lenders, the filing further said.
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