Golden Tobacco to defer all capex plans amid COVID crisis

Golden Tobacco Ltd (GTL) on Tuesday said it has decided to defer all capital expenditure except those in advance stages due to the coronavirus pandemic and it has around "nil unutilised fund based limits" as on April 30, 2020In a regulatory filing disclosing the impact of COVID-19, the company said in April and May 2020 there was no production and currently its plants are operating based on demand, outlook and labour availability.

Golden Tobacco Ltd (GTL) on Tuesday said it has decided to defer all capital expenditure except those in advance stages due to the coronavirus pandemic and it has around "nil unutilised fund based limits" as on April 30, 2020

In a regulatory filing disclosing the impact of COVID-19, the company said in April and May 2020 there was no production and currently its plants are operating based on demand, outlook and labour availability. On the planned capital expenditure, GTL said it has "decided to defer all capital expenditure except those in advance stages" which were to be completed by the end of 2019-20. Manufacturing operations have gradually restarted with due guidelines from the respective government authorities. Cigarette/cigar manufacturing plant located at Vadodara resumed operations from June 1, it added

Sufficient inventory of raw material at plants are ensured for smooth manufacturing operations, the company said. With regards to liquidity position, GTL said it has "around nil unutilised fund based limits" as on April 30, 2020. GTL sells a range of cigarettes under different brands including Panama, Chancellor, Golden's Gold Flake and Taj Chhap.