Vivo expects to remain as a 'going concern'

Kolkata: Chinese smartphone maker Vivo Mobile India has said in a regulatory filing with the Registrar of Companies (RoC) that it expects to continue as a "going concern" and manage capital to be financially solvent. The development comes at a time when the company's auditors have flagged concerns in RoC filings over Vivo's ability to be a going concern due to multiple regulatory actions against the company.

Vivo, which was the country's largest smartphone maker in the April-June quarter as per researcher IDC India's latest data, said it will maintain "optimal capital structure to reduce cost of capital".

"The group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the group is based on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence," Vivo Mobile India said in the RoC filing.

The company's auditor said in its report posted in filing made with the RoC in August that owing to ongoing investigations, tax issues and legal proceedings involving significant amounts under litigation, a "material uncertainty exists that may cast significant doubt on the ability of the company to continue as a going concern".