| The company has also set off bad debts of Rs 347.77
million against its share premium account as on 31 March, 2004. IMC
has an additional debt burden of Rs 220 million.
"We have been having problems of receivables. Besides, the
position on CAS was not clear. So we thought it would be a prudent
approach to clean up our balance sheet," says a senior official
in the company.
IMC also felt substantial marketing efforts and extensive awareness
campaigns would be required to push for CAS. For long term interests,
STBs needed to be seeded on trial basis or deployed under rental
schemes to make them attractive.
IMC has Rs 1134.43 million left in its share premium account as
on 31 March, 2004, after making these adjustments. This will be
further augmented by an amount of Rs 530.79 million on completion
of issue of shares to Kudelski SA.
Last year, IMC entered into an agreement with Kudelski SA, Switzerland
for issuing around 3 per cent of its equity for $12 million.
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