Anil Ambani, Reliance Communications chairman, will not be paid for the current fiscal year
The company management team on-board has decided to defer their personal remuneration by 21 days.
Reliance Communications Chairman Anil Ambani has voluntarily decided not to draw any salary from the company for 2017-2018, PTI reported on Wednesday. His decision comes weeks after the company reported a Rs 966-crore loss for the quarter that ended in March 2017.
“The decision is part of company promoters’ commitment to strategic transformation programme,” the company said in a statement, according to The Hindu BusinessLine. “RCom management also steps up, follows Chairman’s lead to ensure time-bound execution.” The company management team on-board has also decided to defer their personal remunerations by 21 days. “Measures will remain in place till December 2017,” it said.
On May 27, the company reported its worst quarterly loss. It had said that the Indian telecom sector was “severely impacted” by the “free offers, disruptive pricing and hyper-competition”. The consolidated revenues in the January to March 2017 quarter stood at Rs 4,524 crore, 24% lower than the same period in 2016, RCom had said. The loss for the 2016-2017 fiscal year stood at Rs 1,283 crore as against the net profit of Rs 660 crore in 2015-2016.
Days later, The Economic Times had reported that the company had delayed the repayment of loans to more than ten banks, which forced some banks to categorise it as a “special mention account” in their asset books. Special mention account assets are declared when a borrower has failed to make their interest payment.