I had raised this point on May 24 winning order is not key esp in GOVT .
Govt as customer is triple edged sword
- Corruption
- Receivables
- Unfair (one sided) terms of contracts
Krsnaa Diagnostic raced up on order receipt and now order cancellation -
Taking Legal course may upset its other Quasi Govt customers . No one likes to deal with company that files cases against you …
Cases like this takes long to time to resolve even after favourable judgement . There are many such examples when company has won thousand go crores as compensation from high court , but they case then get stuck at SC for 6 - 7 years … … in meantime company may turn near bankrupt
If you are buying any company who has GOVT as primary customer pay less than 5 times OCF ( last 5 years Avg OCF is better metric )