Round 2:

 We focused on onboarding more employees (especially low grade) so that we can increase
the workforce and then bid for projects.
 We also increased the salary hikes and bonus paid as the attrition rate was close to 50%

Outcome:

 By the end of R2 we were able to lower the attrition rate to 25%

 The receivables kept on increasing leading to lower cash balances

Learning:

 Apart from hiring new people one should also focus on the attrition rate for higher
employee perception
 Receivable cycle should be maintained at industry levels as slow cycle leads to lower cash
positions

Round 4:

 We started bidding more projects so as to increase the cash flows and reduce the benched
workforce.
 We also increased the R&D expenses and focused on keeping more cash via using overdraft
facilities and loaned R&D expenses.

Outcome:

 Though we bid for many projects the acceptance was very low
 Increased R&D expenses increased the costs reducing the margins

Learning:

 R&D should be expensed only when you are seeing growth in revenues as these costs
reduces margins
 Should have focused on lowering the expenses and have tried to identify the problem

Round 6:

 During R6 we expanded the facilities so as to cater the expanding projects and increase the
productivity
 We tried to perform share buyback so as to push the share prices

Outcome:

 Lower push in share prices than expected

 Continued cash burn and shrinking PAT

Learnings:

 Should have focused more on operational efficiency than pushing share prices
 Should have managed the direct costs as the super gross margins also declined

Round 8:
  We kept on spending the R&D expenses and focused on hiring more employees.
 We tried to raise more money via debt so as to restore cash balances

Outcome:

 Shareholder equity was very negative by the end of R8

 Cash position was very weak with less than 500K in cash balances and huge emergency loan

Learnings:

 Should have focused on the emergency loan numbers as well not just direct debt.
 Should have reduced the receivables period as by R8 we had 177M in receivables and less
than 400K in cash balance.