Payment delays by the government have led to a severe liquidity crisis at IT firm Rolta India, international ratings agency Fitch said today. The agency also said that Rolta will have to arrange at least USD 60 million to improve its cash position immediately. "We believe that delays in payment by its biggest customer - the Indian government - along with banks' reluctance to extend credit for a loan due on March 31, 2016, have led to severe liquidity crunch at Rolta," it said in a note. Fitch analysts said that over 45 per cent of the company's USD 560 million revenues in 2015 were from Central and state governments, especially for works done in the defence sector. The receivables increased to USD 288 million or 190 days revenue at the end of March 2016, from 126 days in the year-ago period, they said, adding that the company had a cash balance of USD 33 million as of March 31, 2016. "Fitch believes that Rolta needs at least USD 60 million to improve its liquidity in the very short term," the note added. The missed coupon payment on Rolta LLC's USD 127 million 10.75 per cent bond due in 2018 would require USD 6.8 million, while USD 35 million is required to pay bank loans that were due on\u00a0March 31, they said. Apart from this, USD 16 million would have to be arranged for a coupon payment on Rolta Americas LLC's 2019 bonds due on\u00a0July 24, they said. "Rolta would need substantial new capital if holders seek to accelerate repayment of the notes. Fitch doubts whether there would be sufficient market appetite to provide this capital," the note warned. The analysts further said that Rolta is holding discussions with its bankers to refinance or restructure its loans to improve the liquidity stress but expressed scepticism on whether it would be successful. Rolta India would have to offer unencumbered real estate assets such as the Rolta Tower A and others in the city, estimated at about USD 100 million by the agency, as additional security for refinancing and obtaining additional funds, Fitch said.