Reliance Jio Writes Down Net Worth By Rs 12,000 Crore
Reliance Jio Infocomm Ltd. has written off nearly Rs 12,000 crore from its net asset value after adopting the new accounting standards which came into effect from financial year 2016-17.
The net effect on the balance sheet will be Rs 7,889 crore, the company said in a stock exchange filing, after it accounted for a deferred tax worth Rs 4,174 crore, as per IND AS.
The country’s newest telecom operator, which started charging consumers only from April 1, also posted a loss of Rs 22.5 crore in the last six months of the last financial year. Total income in the last six months of FY17 stood at Rs 0.5 crore.
Mukesh Ambani's self proclaimed "startup" saw its net worth almost double to Rs 70,864 crore at the end of the financial year, compared to Rs 37,236 crore a year ago.
The operator had disrupted the Indian telecom space by offering free services for the first seven months, and then introducing tariff plans at lower rates than the existing operators. This has spurred consolidation, and discount offerings in the country’s telecom market.