MTNL net worth eroded last quarter

Last quarter auditors’ report mentioned that MTNL’s net worth is completely eroded and that the company’s net cash loss during the quarter and period ended December 31, 2017, as well as in the FY2016, the current liabilities exceeded the current assets substantially.” The report also mentioned that the Department of Public Enterprises (DPE) has classified MTNL as ‘Incipient Sick CPSE,’ which has also been confirmed by the Department of Telecommunications.

Back in October 2015, DPE had issued guidelines regarding how to deal with the revival and restructuring of incipient sick Central Public Sector Enterprises (CPE).

Government’s indecision on MTNL

It’s worth noting that the government had earlier considered merging BSNL and MTNL in Lok Sabha in March last year to save the company from a possible shutdown. But later in a Lok Sabha reply in August 2017, Minister of Communications Manoj Sinha said that “there is no proposal for merger of BSNL and MTNL”.

Earlier, in February 2017, the Ministry of Communications had informed the Lok Sabha that MTNL is exploring options to monetize its assets which may contribute to additional revenue.

Download: Financials