HAL’s financial reports available with TOI show that the MoD owed the defence public service unit (DPSU) about Rs 14,000 crore for the financial year ending March 31, 2019. Grappling with low finances, HAL, for the first time in many years was forced to borrow funds to the tune of Rs 962 crore in December 2018 as its cash-in-hand was in the negative for the first time. Hindustan Aeronautics Ltd’s cash-in-hand has plummeted to a meagre Rs 140 crore as of March 31 this year

BANGALORE: Hindustan Aeronautics Ltd’s cash-in-hand has plummeted to a meagre Rs 140 crore as of March 31 this year — its lowest since 2004 — in a direct impact of its massive dues from the defence ministry. HAL’s financial reports available with TOI show that the MoD owed the defence public service unit (DPSU) about Rs 14,000 crore for the financial year ending March 31, 2019.

While HAL’s cash-in-hand slipped by about 98% from Rs 6,524 crore as of March 31, 2018, its receivables had nearly doubled from Rs 7,741 crore. The pending bills are all for products and services HAL has already delivered. Majority of the dues is owed by the Indian Air Force.

Both MoD and IAF did not respond to TOI’s query on the matter, sent on April 2 and 3, respectively. Data from 2003-04 to 2018-19 show that the cash balance has never been this low. The lowest in this period was Rs 4,841 crore in 2003-04.

Grappling with low finances, HAL, for the first time in many years was forced to borrow funds to pay salaries to its employees. It borrowed Rs 962 crore in December 2018 as its cash-in-hand was in the negative for the first time, which was first reported by TOI.

As of December 31, dues from the armed forces stood at Rs 15,700 crore. HAL CMD R Madhavan had said that it could touch Rs 20,000 crore by March 31. The MoD has cleared some bills after which the pending dues stand at Rs 13,938 crore as on March 31, 2019.

Notwithstanding its poor cash position, HAL has paid interim dividend of Rs 662 crore to the Centre in 2018-19. This is in addition to the Rs 8,996 crore it paid as dividend between 2003-04 to 2017-18, more than 50% of which was paid in the last five years.

Besides, for the first time, HAL’s paid up Rs 6,393 crore in two buy-backs in the past four years. The first buy-back of Rs 5,265 was in 2015-16. The second one happened in 2017-18, when HAL paid Rs 1,128 crore.

HAL’s order book position, however, has remained constant. As on March 31, 2019, it stood at Rs 58,000 crore — Rs 50,000 crore of this is for the last 12 Su-30MKIs, which HAL is likely to deliver by March 2020. The other orders include Dhruv and Cheetal copters.

Defence minister Nirmala Sitharaman had, in January, said orders worth Rs 1 lakh crore were in the pipeline. She spoke of 83 Light Combat Aircraft Tejas worth Rs 50,000-crore, 200 Kamov helicopters worth Rs 20,000-crore, 15 Light Combat Helicopters, 19 Dornier aircraft and the aero engines for Su-30 upgrade.