The company has opted for a moratorium on payment of interest on certain existing credit facilities to boost its liquidity. However, the company is confident to manage the same incoming period.
Due to lockdown and restrictions imposed by the government the supply chain has been adversely affected. The company believes that the disruption in the supply chain caused by the pandemic will be short term and does not expect any drastic or permanent impact.
It also faced a temporary reduction in demand due to lock down which the company expects to improve the end of this financial year.
Due to lockdown, the manufacturing and sales operations of the company were shut down from the last few days of March to comply with government guidelines.
Such shut down is expected to have an adverse effect on the financial statements for the financial year 2020-21. Even though the overall demand of the products has been impacted, but due to easing out of restriction in lockdown, the demand for the product is gradually improving, company said.
The company resumed partial service of operations from May 14, 2020, after implementation of standard safety measures. Presently, the company has resumed work in all manufacturing units, warehouses and offices.
“We are gradually re-opening our retail stores across the country in compliance with the respective local regulations applicable. Currently, we have opened around 200 retail stores across the country. We are continuing to track and adapt according to the guidelines issued by the respective regulatory authorities,” it said.
With the graded opening of retail stores and manufacturing facilities, the company is making every effort possible to make up for the lost time due to the pandemic, during the year.
Khadim India Ltd is currently trading at Rs113.50 down by Rs0.45 or 0.39% from its previous closing of Rs113.95 on the BSE.