Is this an undervalued stock?, page-3

It's interesting this one to say the least Pangzi2.

Management seems to have managed the costs/expenditure relative to the downturn, such as shedding the non-profitable consultancy businesses. The cash/borrowings they are sitting on belongs to Centrals shareholders (???) which is better then owing the banks. Reading through the last 2 reporting statements, they have been using profits to reduce their debts and the borrowing from shareholders does not mature till the end of 2017. Interest to shareholders seems to have been deferred if I have not read incorrectly. The reporting statements account for the borrowings but still suggests the equity in the company is $16m, hence, my question around this being valued @ 5m. Not much of an accountant, so keen to hear from any experienced posters on my interpretation of the reporting statements.

They are obviously keeping the $20m cash handy and the only thing I can think of is management has something cooking around diversification, hence the support from shareholders. They also have a $10m debt facility which does not seem to be used. The total cash at disposal is good as I imagine it would avoid any unnecessary dilution via a CR which I have seen from too many of the clamour tech stocks.