The recent developments in the global banking sector and emergence of significant headwinds have led to rising concerns around contagion and the potential impact on the broader economy. ADSL would like to reassure its investors that the company remains well-insulated from these risks, due to prudent risk management practices and a diversified portfolio of service offerings. All of the Company contracts remain live and the company is operating at regular levels of activity.
Further, Allied Digital Services LLC (ADS LLC), our subsidiary based in USA, has been banking with Avid Bank since 2012 and the said bank has excellent track record and good ratings. ADS LLC has undertaken multiple initiatives to secure its funds and to mitigate risks arising from bank failures.
To ensure the safety of the funds in US bank accounts, ADS LLC has worked closely with Avid Bank to undertake proactive measures in order to bring all of its funds under Federal Deposit Insurance Corporation (FDIC) coverage. The FDIC provides insurance coverage of up to $250,000 only per bank account. However, considering the current level of carrying surplus fund balances, relying solely on FDIC coverage would not be sufficient.
To address this concern, the Company has utilized the services of IntraFi, a leading provider of deposit insurance solutions. Through IntraFi, the surplus funds have been placed with multiple banks, thereby ensuring that 100% of cash and bank balances of the company are insured. This strategic move has significantly reduced the risk emanating from bank failures and provided all its stakeholders greater reassurance and peace of mind.
As a result, there is adequate liquidity to maintain activity levels as well as scale up operations to cater to the large and growing order book. ADSL is focused on managing finances responsibly and proactively mitigating risks, thereby ensuring long-term sustainability of the business.
The Company remains committed to delivering value to shareholders and strongly believes that ongoing investments in technology and talent will enable it to capitalize on emerging opportunities in the IT sector. The continued trust and support from stakeholders is appreciated and ADSL remains dedicated to delivering exceptional value.
Shares of Allied Digital Services Limited was last trading in BSE at Rs. 82.77 as compared to the previous close of Rs. 81.90. The total number of shares traded during the day was 24869 in over 312 trades.
The stock hit an intraday high of Rs. 83.35 and intraday low of 80.26. The net turnover during the day was Rs. 2047874.00.