Dear Shareholders,
During the financial year 2021-22, the company continued to focus on reduction of debt
and losses. The Company undertook various initiatives to achieve these objectives such as
monetization of properties and realization of tax refunds etc.
Our System Integration and Solutions business continued to face delays in acceptance
and sign-offs on project completion from certain customers, particularly those in the
power sector, resulting in delays in recovering receivables. Also as the company continued
to provide support to these customers, the company is incurring higher costs which is
increasing the operational losses as reflected in the financials. The team has been
continuously engaging with this set of customers to recover the outstanding dues and the
Company is also pursuing legal options, wherever required, by invoking arbitration to
recover the receivables.
Your Company has initiated a scheme of amalgamation of Digilife Distribution and
Marketing Services Limited (DDMS) and HCL Learning Limited (Learning), wholly owned
subsidiaries, with and into HCL Infosystems Limited (HCLI). The rationale for this is to
consolidate multiple entities into a single entity to simplify the corporate structure and
reduce administrative costs.
To assist the Company in meeting its financial obligations, the promoter Company has
been, from time to time, voluntarily extending financial support (by way of loans and
Corporate Guarantee) to the Company, even during challenging market circumstances.
As the Company continues to face very challenging financial conditions, the Company has
no ability to invest in any new business ventures or expanding its current operations.
I would like to thank all our shareholders and all other stakeholders who have
supported the company in the challenging circumstances.
| With Warm Regards, |
| Nikhil Sinha |