Earnings Call Transcript for Discussion between Management and Analysts for Q3FY20
Opening Remarks
Now let me explain how the board structure will evolve. Going forward I will remain the sole representative of the promoter family on the board of the company. Mr. Chandra will not be putting up his name for re-election in the next fiscal and will assume the position of Chairman Emeritus. To further strengthen the board, new independent board members, with expertise in the field of either media or technology, will be inducted.
This exercise is expected to be completed by the month of February. All these appointments will have to be ratified by the shareholders and will come up for their consideration at the forthcoming AGM. Moving on to some of the questions you might have regarding the balance sheet. Over the last couple of years, we have received feedback on company’s treasury policy. Management has incorporated these suggestions in the treasury policy and the same has been approved by the board. In a nutshell, it mandates that going forward entire surplus cash shall be invested in high quality highly liquid instruments. During the year, the audit committee had initiated an internal audit of advances.
The internal audit report has confirmed compliance with all the processes. These transactions are being further verified by another external auditor and their report will be presented to the board by the first week of Feb. Lastly, on receivables from Dish TV and Siti Cable, we have performed a detailed analysis of recoverability. Based on the assessment, the company has determined that the entire balance is good and collectible. As per the plan agreed with Siti Cable and Dish TV, the arears will be cleared over 12 and 24 months, respectively. Consequent to the delay in payment, the company has taken an expected credit loss charge of Rs. 376mn during the quarter. The Company will closely monitor the collection pattern from the said customers.
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