Mumbai, July 1 (TIWN) As Vodafone Idea reported a net loss of Rs 6,985.1 crore for the January-March quarter, auditors of the company have raised concerns over its survival as a 'going concern'.

In its notes to the financial results for FY21 and the fourth quarter of last fiscal, the company said that the group has incurred losses of Rs 44,233.1 crore for the year ended March 31 and the net worth is negative. As at March 31, 2021, the total debt, including interest accrued but not due and AGR liability of the group stands at Rs 1.86 lakh crore.   

Further, as a result of the rating downgrade, certain lenders had asked for increase of interest rates and additional margin money or security against existing facilities.

The group has exchanged correspondences and continues to be in discussion with the lenders for the next steps or waivers.  Citing the notes, the auditors said that: "The company's financial performance has impacted its ability to generate the cash flow that it needs to settle or refinance its liabilities and guarantees as they fall due, which along with its financial condition is resulting in material uncertainty that casts significant doubt on the company's ability to make the payments mentioned therein and continue as a going concern."