- Income tax and other statutory dues of 20.55Crores and 6.55 crores respectively-the company claims a 'liquidity issue' here
- Overdrawn working capital loans of Rs 106crores-here the company needs to either provide additional securities, or repay the overdrawn amount. It has jumped the gun and claimed that its offer of additional security is under evaluation
- Cash Deposit NOT created for debunture reserve maturing next year(as mandated under the companies Act 2013)
- Overdue loans of 2.4Crores to LIC, and 18.5crs to IDBI-the company has offered to pay on account Rs 4.5crores apparently owed by LIC to the promoter
While there is no statutory prohibition against this that I know of, it is certainly unusual for a company to prioritize paying shareholders first over its employees, lenders and tax authorities-all of whom have more secure claims at bankruptcy. But then, rare are the promoters who accept a token remuneration when their company is making losses-instead they seek shareholder and government approval to keep paying high amounts despite this.
The stock price jumped 10% on the news but it seems only a matter of time that creditors will protest and have the dividend revoked.