C2C's new CEO targets 80% of overdue receivables by September
Krishna Chandra took over and immediately collected ₹25 cr. Now he wants 80% of overdue receivables cleared in two months, backed by a new no-long-payment-cycle policy.
What's new
- New CEO Krishna Chandra targets 80% of overdue receivables by end-September 2026.
- Contracts worth ~₹100 cr disclosed to NSE; ₹80 cr counter-drone deal expected by Oct.
- ₹14.5 cr IFRS 9 provision called recoverable; SA 570 audit observation conditional.
- New policy bans contracts with payment cycles beyond 180 days.
Why this matters
C2C's new CEO is moving fast to fix the receivables mess that dragged the stock. Collecting ₹25 cr in four months is a start, but 80% of the overdue pile by September is ambitious. The contract disclosures add revenue visibility, and the policy reset on payment terms attacks the root cause. The IFRS 9 provision reversal would directly boost earnings, but the SA 570 cloud hasn't fully lifted.
What we're watching
- Whether the 80% receivables target is met by end-September.
- Timing of the ₹80 cr counter-drone contract close.
- September half-year results due within three weeks of period end.
The full read
C2C Advanced Systems' new CEO Krishna Chandra didn't wait. Since taking over, the company collected over ₹25 crore from overdue receivables — real cash, not promises. On the July 27 concall, Chandra committed to collecting at least 80% of the overdue pile by end-September. To back that, he disclosed contracts worth close to ₹100 crore to the NSE, with a ₹80 crore counter-drone deal expected by October. The ₹14.5 crore IFRS 9 provision? Recoverable and reversible, management says. The SA 570 audit observation? Conditional, not a going-concern. Past filing errors were acknowledged, and a new policy now bans contracts with payment cycles beyond 180 days — a direct fix for the receivables rot. For a ₹670 crore market cap company, ₹25 crore is meaningful. But the open question is whether the 80% target holds. Half-year results, due within three weeks of period close, will show.
Questions answered
- How much did C2C collect from overdue receivables since March 31?
- C2C collected over ₹25 crore from overdue receivables since March 31 and committed to collecting at least 80% of overdue receivables by end-September 2026.
- What are the new contracts C2C disclosed?
- C2C disclosed contracts worth close to ₹100 crore to the NSE and expects a ₹80 crore counter-drone contract to close by September or October 2026.
- What is the status of the ₹14.5 crore IFRS 9 provision?
- The ₹14.5 crore IFRS 9 provision is described as recoverable and reversible, meaning C2C expects to recover the amount and reverse the provision, which would boost earnings.
- Has C2C changed its contract policy?
- Yes, C2C announced a new policy rejecting contracts with payment cycles exceeding 180 days to prevent future receivables issues.
- What is the SA 570 audit observation about?
- The SA 570 audit observation is characterized as conditional rather than a going-concern qualification, indicating it is a watch item but not an immediate threat to the company's survival.