Munjal Showa likely to see some financial impact of lockdown, to settle all liabilities in-house
In a regulatory filing, Munjal Showa said its manufacturing facilities remained shut from March 23, 2020, due to the lockdown and partially reopened from May 8 thereby impacting its operations during the period.PTI | New Delhi | Updated: 30-06-2020 11:42 IST | Created: 30-06-2020 11:42 IST
Auto components maker Munjal Showa on Tuesday said the temporary suspension of manufacturing and continuing reduced levels of operation due to the coronavirus pandemic are likely to have some financial impact in the future, but the firm would be able to absorb it. In a regulatory filing, Munjal Showa said its manufacturing facilities remained shut from March 23, 2020, due to the lockdown and partially reopened from May 8 thereby impacting its operations during the period. "Operations have already been started partially with permitted workforce and shall be further scaled up keeping in view the government guidelines to be issued from time to time," it said. On its liquidity position, the company said there are no concerns as "enough resources are available in-house to settle all the liabilities and resume operations normally... The receivables are being collected, although with some delays. We are sure to manage the situation well." As far as supply chain is concerned, since the resumption of operations are aligned with that of the suppliers, transporters and other service providers and no significant issues are expected, it added.
In terms of demand, the company said with the re-opening of almost all the states, where it has major business, the situation is becoming normal. The company also said it does not foresee significant impact with respect to its existing contracts and agreements where the non-fulfilment of obligations by any party would lead to any material financial claim by or against it.
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