Bengaluru, Feb 21 (IANS): Claiming that its financial condition was stable and robust, state-run Hindustan Aeronautics Ltd (HAL) on Thursday admitted that receivables amounting to Rs 9,500 crore were delayed from customers including the Indian Air Force (IAF) and Indian Army.

"Our finances are stable and robust. There is no problem with our financial condition as we have Rs 12,000 crore in reserves and surplus. Our cashflows were affected as receivables were delayed from our customers, namely IAF and Army," HAL Director (Finance) Ananth Krishnan told reporters here.

Admitting that the city-based defence behemoth had to borrow from banks to meet its working capital as receivables were delayed, Krishnan said production, sales and other operations were not affected due to the cash crunch.

"Our financial performance in the first nine months of this fiscal (2018-19) showed our revenue from sales and services were on target and profit grew 13 per cent annually from the same period last fiscal (2017-18)," said Krishnan at the Aero India expo at the IAF's Yelahanka base here.

For the first time in many years, the aerospace major had borrowed about Rs 1,000 crore from state-run banks during the third quarter for working capital, including salary for its employees spanning 20 divisions in nine locations across the country.

Asserting that the morale of its employees and officers was high despite adverse reports in light of a controversy over the company losing the contract to make French Rafale fighter, Chairman R. Madhavan said there was no shortage of manpower and the workforce was being rationalised.

"We do feel bad about the negative media reports though they have no bearing on our employees, unions and middle-level management. In fact, we are rationalising our workforce and hiring as we increase outsourcing making of airframes, structures and components to our 2,300 industry partners," added Madhavan.