The expected COVID-19 impact on profits of Kothari Petrochemicals Limited would be around 25%, however the exact quantum of impact for the relevant reporting period will be disclosed in the financial results of the company.

 

The company does not plan to raise any capital in the near future and hence, there is no impact. The company is leveraged on the debt front and can raise further debt for operations. Collection from debtors has been impacted marginally with some of the customers, as they have requested for a deferred payment schedule which the company keeping in mind the long-term relationship has accepted. 

 

The company has been meeting all its financial and contractual obligations so far. Further, the company is also evaluating the effectiveness of “Forward Contract” in its foreign currency transactions due to volatility in the currency rates especially in US dollar to rupees.

 

The company has not availed any moratorium from any of its lenders and the company has never in the past defaulted on any interest or loan payment and does not see any issue meeting future obligations too.

 

The Assets of the company have not been materially impacted or impaired by COVID-19, since there is no significant change in the extent or manner in which the asset is used or is expected to be used.

 

The company has an ERP system in place and all its locations are well networked. Even during the lockdown with a combination of critical staff working from location and all others working from home, all reporting systems worked seamlessly without any major disruption and deviation.

 

The company has taken conscious decisions through balanced uninterrupted operations and ensuring a safe working environment. To ensure this, critical staff have been asked to report to work at the plant location. The company has also made necessary arrangements to ensure that their staff are safe and protective at work. The staff at head office have been asked to work from home, thereby ensuring seamless operations, reporting and controls.