Fenaka claims operational costs have been slashed by MVR 160m

Fenaka Corporation Limited has stated that compared to the previous year, the company's operational costs have been reduced by MVR 160 million as a result of the past year’s efforts.

In the book "The Past One Year," which highlights the work done to improve the company’s services and operations over the past year and the goals set for the future, it is stated that when the new management took over the company, the company's debt was recorded at over MVR four billion. This was described as an amount disproportionate to the company's income, which posed significant challenges to the company's finances and operations.

Fenaka noted that the company's income comes from the basic services provided by the company, and these services are provided at controlled prices with tariffs set to ensure affordability for the public. They stated that the opportunities to increase income are limited within certain boundaries. Fenaka said that the way to improve the financial situation is to reduce costs as much as possible and work on collecting the money owed to the company.

As a result of the work done over the past year, Fenaka claims that the company's operational costs have been reduced by MVR 160 million compared to the previous year.

Fenaka said that out of the MVR 1.3 billion loan that was due by the end of November last year, MVR 300 million was paid during the past year. They also stated that out of the MVR 3.4 billion owed to 1,094 vendors, MVR 600 million was paid. This includes full payment to 281 vendors.

Further, Fenaka said that these cost reductions were achieved due to the strengthening of procurement policies and measures taken by the company in finding prices for goods and services. Fenaka states that the company's debt mainly consists of money owed to suppliers of goods and services and loan repayments.

Fenaka said that with the important steps taken to reduce costs, significant progress has been made in managing the company's expenses and debt repayment.

However, repaying this debt while providing services is currently the biggest challenge facing the company, with 40 percent of this year's income being spent on debt repayment.

The company has said that debt restructuring and financial assistance are needed to put the company on the right track.