Covid-19 causes adverse affect on Shreenik’s revenue and profitability

As per the nationwide lockdown, all the offices and branches of the company was closed and restarted gradually.

Jun 30, 2020 09:06 IST India Infoline News Service

The revenue and profitability of Shreenik Limited is adversely affected. The company in an exchange filing revealed that it faced the liquidity issue due to temporary interruption in realization from the debtors. The company is taking every necessary steps to manage the revenues and profitability.

There is no material impact of Covid-19 on the carrying amount of company's Property, Plant & Equipments, Inventories, Receivables and other Current Assets. The company is expected to fully recover the carrying amount of its current assets.

As per the nationwide lockdown, all the offices and branches of the company were closed and restarted gradually as per the guidelines issued from time to time by the State and Central Government.

All the preventive measures such as wearing mask, social distancing, thermal scanning at the entrance, frequent use of sanitizers for employees and office belongings, etc. are implemented and strictly followed in all the offices and warehouses.

The company is involved in the distributorship of Papers. The supply chain of the same was adversely affected on account of restrictions imposed on transportation. As the papers are mostly used in the offices, school stationery, retail outlet and printing press, etc. and in view of present condition demand of the product is temporarily affected. We expect to increase the demand in the forthcoming quarters of this financial year.

The company does not have any such business contracts and agreements where non fulfillment of the obligation by any party may create the material impact on the business.

The company starts trade at Rs 40.25 up Rs1.90 or 4.95% than previous closing of Rs38.35 on the NSE.

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