re: Ann: Quarterly activities and cash flow r...
Hindustan Copper do not like parting with their money. Any excuse they refuse to pay or use delaying tactics to hold up the process. CASE(1) "During an earlier hearing, HCL’s request for a rejection of the appeal at the admission stage was rejected by the Honourable Court, however it considered their request for filing an additional affidavit. The Court fixed 21 January 2014 for a final disposal of the case on a non-miscellaneous day. No additional affidavit has yet been filed by HCL."
HCL tries to throw out the appeal, then requests to file extra affidavit and then doesn't file it. This case has now been set down for the 10th Feb 14. Will HCL file their affidavit, I'd doubt it. The Court will give them another extension.
CASE (2) "On 9 October 2013 the Arbitrator decided in favour of HCL and IRL has since decided to challenge this award and has filed an appeal under section 34 of the Arbitration and Conciliation Act. 1996."
What did you expect? HCL appoints an arbitrator, did you really think that IRL would win? Now it will be back in the Court and hopefully an impartial Judge will review the case. Don't hold your breathe waiting for an impartial Judge in India. IRL would not be challenging this unless they thought they had a legitimate case to claim this. HCL will again use all the delaying tactics that are available to them.
CASE (3) On the 31st August the Arbitrator made the award. Again the Arbitrator was appointed by HCL, so IRL was allowed to have a small win. The result, HCL drags out the payment as long as possible. At least IRL is getting paid 12% on the award payment since 1st Sept, so already 5 months interest due on AUD$1.2 million, so this should result in another $70,000 in interest by the time its paid. But I wouldn't hold your breathe waiting.
Otherwise a good positive Quarterly report and a little money in the bank, a good sign. AND it can only get better.
IRL Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
