Askme employee protest due to unpaid due

Employees and sellers of Astro Entertainment-backed Getit Infoservices (owner of businesses

under AskMe brand) held a protest outside Askme.com's Gurugram office on Monday
demanding payment of their long-pending salaries and dues.

Cash-starved e-marketplace operator Askme suspended operations last week after its promoter
group Malaysia-based Astro Overseas pulled out last month without paying the last tranche of
funds to the company.

"There is a temporary suspension of operations as of now and we have not been paid our
salaries," said one of the employees participating in the protest.

The shutdown has impacted nearly 4,000 people working in the e-commerce firm, said another
employee, adding that they had received no communication from the company about any layoffs.

"We have not been paid our July salaries and many employees have not received their
reimbursements since the beginning of the financial year," one of the employees quoted above
told dna.

An email sent to Astro Entertainment's media agency seeking clarity on non-payment of dues
remained unanswered at the time of going to print.

The protest by disgruntled employees and vendors of the e-commerce outside the Gurugram
office was captured in a video sent to dna by one of the employees. Seen in the visuals is an
Askme seller leading the protest and seeking intervention into the unceremonious closure of the
company which will impact many people. The protesters held banners which read 'Please don't
spoil a thousand families; give our lifetime earnings back'. Another visible banner read, 'Loans
and interests are eating us alive. Please pay vendor's money'.

Askme.com not only failed to pay salaries to its employees but also its vendors who have been
seeking dues from the company since October last year. Astro-owned investment firm Astro
Entertainment Networks Ltd (AENL) said in a statement last week that despite its huge
investments (of around $300 million), Getit had not been able to make its business profitable and
sustainable. The Malaysian investor said an independent review by advisors had concluded that
there was little prospect for turnaround and the business was insolvent.

Astro Overseas also said that it will seek a forensic audit of the books of AskMe's parent Getit
Infoservices, but, in the video, the seller is seen saying that they had no idea what the outcome of
the audit would be and what the communication was (with the company).

"Operations were put on hold last Wednesday and there has been no communication whatsoever
thereafter whether Astro will pay the dues or not. We are hearing from the news reports that the
management has resigned.

We haven't been told anything," the employee said

Sinking fast, AskMe sends SOS to Astro
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Praveena Sharma | Sat, 20 Aug 2016-07:25am , New Delhi , dna

Says the group was still not commercially insolvent and it can get investment of around $100-
150 million within 100 days

Getit Infoservices Pvt Ltd, which operates e-commerce businesses under AskMe brand and is on
the verge of closure, has in a last-ditch bid written to its Mauritius-based majority shareholder
Astro Entertainment Networks Ltd (AENL) offering four options to save the group from sinking.

In a letter to Ralph Marshall of Astro Overseas Ltd, which owns 100% stake in AENL, and
Hisham Mokhtar of AENL, the management of Getit Infoservices it has said shuttering of the
group would adversely impact its over 4,000 employees.

"Keeping in mind the best interest of 4,000+ employees of Getit Group and to save the business
of Getit Group I would like to place multiple option on table for discussion," wrote the group's
top management on August 12.

It urged the Malaysian investor to not "be in a hurry to close down the business".

"Getit Group is still not commercially insolvent that it cannot attract investors," wrote the
management in a desperate bid to keep the foreign investors from shutting down the operations
of the marketplace businesses owned by Getit.

Among the revival suggestions put forth are management buyout (MBO), "primary" infusion of
fund within 100 days, buying out of Getit Stores Pvt Ltd, which is 100% owned by Getit Info
and has stakes in all its marketplace business, or acquisition of all marketplace businesses in
which Getit Store has stake – Getit Grocery, Getit Furniture and Getit e-wallet.

The e-commerce start-up, which has a complex corporate structure (see graph), has been going
downhill over the last few months and is about to fall over the cliff if sufficient fund is not
immediately pumped into it.

The MBO deal, which the minority shareholders had proposed, fell through because of
disagreement between them and the Malaysian investors.
In their letter, a copy of which is with dna, the Indian stakeholders have taken an accommodative
stance; "We can discuss the terms, which as per your letter dated August 10, we fail(ed) to
mutually agree and see if a middle path can be achieved, which satisfies the interest of both the
parties".

The second revival package includes "primary infusion of funds" within 100 days on mutually
agreed valuation.

"This will give Getit Group required oxygen to survive till we identify a third-party investor,
who can provide an exit to AENL," states the letter.

According to a source, who did not want to be named, the management is looking to raise $100-
150 million from prospective investors, who were ready to put in money within next 100 days.
The fund could be brought in as equity or debt or a combination of both.

And since it would be injected into companies of Getit Infoservices, it will result in dilution of
all the current shareholders.

The amount, he said, would be sufficient to run the operations of the group companies for at least
18 months, by which time the management expects to start generating positive cash flows.

In case both the above proposals were not agreeable to the foreign investors, the Getit
management has come up with a third option that involves acquiring of Getit Stores Private Ltd;
"I am willing to acquire either as a share acquisition or as a business acquisition the entire
business of Getit Stores Private Ltd, provided the valuation is agreed upon".

The fourth revival package talks about buying out "shares" or "businesses" of all the
marketplaces in which Getit Stores has stakes – Getit E-wallet Private Ltd, Getit Grocery Private
Ltd and Getit Furniture Private Ltd – on mutually agreeable valuation.

On Friday, there was a strong buzz in the market that the operations of the Gurgaon-based
internet search platform had been closed down and its employees laid off due to shortage of
funds and a sudden exit of its majority overseas investors.

A week back, the key management personnel (KMP) had written to the ministry of corporate
affairs (MCA) and Registrar of Company (RoC) to ensure that the principal investors of Getit
Infoservices – AENL – did not exit the country without meeting their liabilities.

AskMe began its operations in 2010 as a classified portal and launched its marketplace
AskMeBazaar in 2012. A year later, Getit Infoservices acquired it from Network18. Since then,
it has launched many other marketplaces like AskMeGrocery, AskMeFin, MebelKart.com and
others.

Over the last six years, Astro has invested around $300 million in various businesses of Getit
under the AskMe brand.
A statement issued by AENL on Friday said that despite its huge investment, Getit had not been
able to make its business profitable and sustainable.

The Malaysian investor said an independent review by advisors had concluded that there was
little prospect for turnaround and the business is insolvent.

"AENL intends to appoint a forensic auditor to review Getit's books and will take appropriate
steps based on the results of that audit," it said in its release.

The majority shareholder said it had been a "responsible and patient investor in Getit over the
last six years making every effort possible to support the business even as other investors
withdrew".

"AENL has at all times been fair, scrupulous and professional in its dealings with the
management of Getit. AENL will continue to act responsibly and in accordance with Indian laws
over this matter," it said.

Similarly, another statement was issued by the Getit management that accused its Malaysian
investor of "trying to flee the country without paying the employees and vendors of AskMe and
other companies and statutory authorities".

They further alleged that the employees were intimidated and threatened when they resisted to
aid them in their "illegal acts". This, they said, has led to many resignations in the group