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.


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.

Published on April 04, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.