Gurgaon Based Marketplace Snapdeal ( Jasper Infotech ) reported a net loss of 4,647 crores in FY17 with impacted by a provision for “impairment of goodwill” of Rs 1,797 crore.
Goodwill impairment is a charge that companies record when goodwill’s carrying value on financial statements exceeds its fair value. In accounting, goodwill is recorded after a company acquires assets and liabilities, and pays a price in excess of their identifiable value. Read more here
Snapdeal’s total income also declined by 12.6% to Rs 1,291.3 crore in FY2017 from Rs 1,478.2 crore in the previous year.
As per ET, Snapdeal spokesperson said:” the financial statement for the year 2016-17 “reflects the first stage of Snapdeal’s focus on unit economics and business efficiencies. Key highlights in this regard are the reduction in fulfillment cost by more than 20 percent (as a percentage of operating revenue) and reduction in operational losses by nearly 25 percent (excluding non-recurring cost on account of impairment of assets).”
He added that the company continues to make “rapid progress in driving profitable growth, which will be reflected in the results for the financial year 2017-18”.
With inputs from PTI.