Rolta says missed interest payments due to stretched working capital

roltaRolta India Ltd said it was unable to pay bank dues and interest on some of its bonds due to a liquidity constaint caused by delays in collecting dues as well as large investment into a “prestigious project”.

Replying to a query from the BSE, the company said it has already put out an update on the same on Friday. BSE had made an inquiry on the basis of a report in Mint Newspaper titled “Liquidity Situation Critical at Rolta”. The report, in turn, was based on an update from Fitch Ratings.

“Rolta has had to continue incurring significant expenses on a very prestigious and time bound defense project, which requires considerable ongoing investment; while at the same time the Company has suffered unexpected delays in large payment collections; thereby facing working capital stress over the past few months. As a result, Rolta has been unable to meet its recent obligations towards interest payment on Bonds / ECB installment,” the company said on Friday.