About Company::
C2C Advanced Systems Limited, formerly known as C2C – DB Systems Private Limited, incorporated in 2018, is a vertically integrated defense electronics solutions provider catering to the indigenously developed defense products industry in India. The company’s core competencies include C4I systems for effective situational awareness and decision support, AI/ML based big data analytics, enterprise integration of real-time data from IIOT, and embedded/FPGA designs.
Green flags:
- C2C is the first start-up in India to foray into the Defence Sector and have delivered Combat Management Systems (CMS) for two Malaysian Naval Frigate Ships.
- The IP stays with the company so if there is any change to be done in the CMS they require the help of the company.
- They are the CMI level 3 company, in defence sector there are only 24 companies in India which are CMI level 3 company.
- In India they have a monopoly in CMS, and no company develops this in India. There are only 4-5 companies which makes CMS in the world.
- They also have AMC with the same customers to which they have supplied their products. So, they also earn revenue from maintenance contracts as well as change of spare parts.
- Ashish Kacholia have purchased 1.5 lakh share at Rs. 450 on 4th November 2024 from the grey market.
- Senior management team members are either with the company for a long time or are industry veterans working for the Indian armed forces, bringing in high level of domain expertise and extensive intra-industry relations.
- The company have provided a window to withdraw the IPO application due to which out of Rs. 8,200 crores received only Rs. 21 crores worth of bid have been withdrawn.
Red flags:
- In FY-24, the company have earned 22% of revenue from one of its subsidiaries- Realtime tech solutions private limited.
- The company earns entire domestic revenue (11%) comes from GOI entities whereas the top 10 customers contribute 100% of total revenue.
- High trade receivable days & negative cash flow from operations.
- The Employee Provident Fund Authorities have declared. Realtime Tech solutions Pvt Ltd as a defaulter amounting to Rs.1.42cr
- CFO Murtaza Ali Soomar is a director in more than 7 companies.
- There are several instances where the company have defaulted in payment of statutory dues to the government authority including GST & TDS.
- The company’s revenue have dropped from 25 crores in FY 19 to 0.4 crores in FY 22, mainly because of the covid 19 crisis.
- The company have provided a loan to one of related parties of Rs. 6.7 crores which is a material amount for the company, and if the management is confident of the demand in this sector what is the reason of diverting fund to subsidiaries.
SEBI Issue
