Omkar Speciality Chemicals Limited (OSCL) can hope to regain business activities in future when the situation becomes stable and expect business loss to reduce from July, 2020 onwards, though it is too early to forecast the situation.

 

Meanwhile, the company has taken all the necessary steps as recommended/stated in the guidelines/advisories issued by the statutory authorities pertaining to COVID-19 time to time.

 

OSCL is not able to fulfill its work orders and requirements of the customers because of unavailability of resources, resulting in to meet its commitments timely. This may result in a negative impact on financial position during the current quarter which may continue for the next few quarters also.

 

Lack of manpower from workers to the supervisory level, uncertainty in supply chain and logistics issues have hampered the production seriously.

 

The impact on cash flow shows that the company has more outgoing than incoming cash. Current outgoing position of cash reflects the time bound payments of staff, unavoidable regulatory fees, statutory dues, etc., facing heavy difficulties is paying off its financial obligations well in time and further affecting on its liquidity. The company is unable to pay its obligations for servicing the finance cost to the bank thereby leading to a default.