Companies

Sintex Industries' default amount stands at Rs 2,203 crore

Our Bureau Mumbai | Updated on April 04, 2020 Published on April 04, 2020

In a regulatory filing with BSE, Sintex Industries said the total financial indebtedness, including short term and long-term debt, is Rs 7,218.85 crores, as on March-end 2020

Sintex Industries has informed the exchanges that of the total Rs 6,213.50 crores of loans/ revolving facilities from banks / financial institutions, the amount of default is Rs 2,203.57 crores as on March-end 2020.

The total financial indebtedness, including short term and long-term debt, is Rs 7,218.85 crores as on March-end 2020, Sintex Industries said in a regulatory filing with BSE. The company’s core business spans across textiles and yarns.

CIRP

The company had disclosed in its third quarter (Q3) FY2020 financial results that a petition has been filed by the financial creditors before the National Company Law Tribunal (NCLT), Ahmedabad, under Section 7 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against it.

As per the disclosure made along with the Q3 results, the ability of the company to continue as going concern is predicated upon the outcome of CIRP and scale up of company level of operations.

In the notes to accounts of the Q3FY2020 results, the company said it is undergoing substantial financial stress and severe liquidity constraints since last nine months coupled with changed industrial dynamics, increasing raw material costs without commensurate increase in selling prices, time and cost overrun in completion of its projects, reduction in subsidies and incentive benefits with delay in disbursements etc.

The aforementioned factors resulted in reduction in capacity utilization of its plants and, therefore, steep fall in sales volume and incurring of losses, it added.

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Published on April 04, 2020
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