The Company's FCCBs are due for redemption in February 2013. Management is seized of the matter and is in the process of restructuring its business verticals with a view towards unlocking the inherent value resident in the various business units. Whilst collection of receivables remains on the forefront, other alternate arrangements such as re-negotiating terms with the bond holders and alternate sources of financing are also pursued with vigor. Given the time frame of eight months from now, the Management and the Board is confident of the plans reaching fruition.
Sundry Debtors include trade receivables aggregating to Rs. 84,193.09 lakhs (Rs.841.93 Cr) as at March 31, 2012. On account of the economic slowdown and consequent recessionary conditions in the global market there have been delays in recovery of such amounts. Given the fact that the amounts are recoverable from customers with whom the Company has a long standing relationship, the Management is confident of realising the amounts due and no provisions are required on these accounts at this stage, (in FY13--but the Financial Year 2011-12, has been extended; see below).
The Company was awarded the "Aapke Dwar" Project in 2009 by the Municipal Corporation of Delhi (MCD). The project envisages availment of various Government to Citizen (G2C) services. The Company is required to install and operate 2,000 kiosks at various locations in the city to facilitate the above. The Company has also the right to display advertisements on the external walls of the kiosks.
As at the balance sheet date of March 31, 2011 - 300 kiosks have been constructed and for the balance 1,700 kiosks, allotment of clear sites by MCD is awaited. In view of the unseemly delays in the allocation of sites by the MCD, the Company has filed a petition in the High Court of Delhi which has initiated the process of arbitration. However, the management is confident of arriving at an amicable solution shortly. Amounts expended on the project as at March 31, 2012 aggregates to Rs.21,800.26 lakhs (~Rs.218 Cr) viz., Capital Work-in-progress-Rs.3,995.42 lakhs, Capital Advances-Rs.14,900.82 lakhs and Security deposits to MCD- Rs.2,904.02 lakhs.
The Company has extended the current financial year 2011-12 up to September 30, 2012 with the approval of the Registrar of Companies, Hyderabad. Therefore the current financial year of the Company shall be consisting of 18 months i.e. from April 01, 2011 to September 30, 2012.