Everonn calls off Centum deal, mulls biz recast
Plagued by unrecovered dues and advances, as well as dead investments in subsidiaries, the company is mulling recasting of its business model. The company’s plea for approval for business restructuring is pending before Madras High Court. According to sources, once the approval is obtained the company will seek shareholders nod for the same.
Significantly, the total expenses of the company shot up to R139.17 crore from R82.63 crore. The tax expenses of the company also increased to R15.85 crore from R3.84 crore. Everonn has a slew of tax assessment cases pending before competent authorities.
In a note to the stock exchanges, the company said that it was in the process of reviewing the investments in view of decline in the value of investments in subsidiaries and others whose networth have eroded.
The company has also hinted at the probable loss it may incur from non recovery of loans and advances and also due to delay in collections from government and other agencies.
It had provided an interim provision of R96.25 crore for the quarter ended December. “ The management is trying its best to recover the dues and advances . Further provision will be made at the end of the year,” the note said. Everonn has 15 subsidiaries, out of which 12 are wholly-owned and has one indirect outfit. Besides,
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