Suzlon Auditors Concerned Over Firm's Financial Health

The auditors of wind turbine maker Suzlon have expressed concern over the company's financial health as faces liquidity issues and is yet to make payments to its lenders and vendors.
In a review report to the stock exchange the auditors said: "The unaudited standalone financial results of the company indicate that it has overdue amounts payable to vendors and lenders and has been facing liquidity issues."
The auditors - S R Batliboi and Co LLP and SNK & Co - said in the review that these conditions along with other matters indicate the existence of a material uncertainty that may cast a significant doubt about the company's ability to continue as a going concern.
Suzlon last week posted consolidated net loss of Rs 6,538.68 crore for the third quarter ended December 2014. It had reported a loss of Rs 1,075.25 crore in the corresponding period a year ago.
Its total income declined marginally to Rs 4,977.18 crore during the October-December quarter as against Rs 5,052.2 crore in the third quarter of FY14.
Chairman of Suzlon Tulsi Tanti had attributed the loss during the quarter to sale of its overseas subsidiary Senvion.
"The huge loss during the quarter is on account of the notional loss to the extent of around Rs 6,000 crore on the sale of our overseas subsidiary Senvion last month," Mr Tanti had said.
Last month, Suzlon sold Senvion to Centrebridge Partners LP for Rs 7,200 crore as part of its strategy to hive off non-core businesses and reduce debt burden of over Rs 17,000
Last week, Suzlon signed definitive pacts with Dilip Shanghvi Family and Associates (DSA) for equity investment of Rs 1,800 crore in the company, amounting to 23 per cent stake.
DSA also announced an open offer today to acquire 26 per cent stake in Suzlon at Rs 18 per share aggregating to Rs 2,837 crore.
Shares of Suzlon closed at Rs 22.95, up 19.84 on the BSE on Monday.