Carysil Limited has provided an operational status update to stock exchanges, confirming that its business operations remain stable and uninterrupted despite ongoing geopolitical developments in the Middle East that have caused volatility in global markets.

Manufacturing Operations Continue Normally

The company reported that its manufacturing facilities are operating at normal capacity, supported by robust infrastructure and operational flexibility. A key strength highlighted is the dual fuel capability through PNG (Piped Natural Gas) and LDO (Light Diesel Oil), which provides operational resilience during uncertain times.

Supply Chain Remains Resilient

Carysil emphasized that it maintains a well-established and resilient supply chain network. The company confirmed that as of the disclosure date, no material disruption has been experienced in either the procurement of raw materials or the dispatch of finished goods to customers.

Limited Freight Cost Impact

While acknowledging that global freight costs have increased due to prevailing geopolitical conditions, Carysil's management assessed that the overall impact on the company's operations and financial performance is not material. The company benefits from having approximately 90% of its export sales conducted on an FOB (Free on Board) basis, which significantly limits direct exposure to fluctuations in freight costs.

Ongoing Monitoring and Preparedness

The company stated that it continues to closely monitor the evolving geopolitical situation and remains prepared to take appropriate measures if required to safeguard operational continuity and supply chain stability. This proactive approach demonstrates management's commitment to maintaining business resilience during uncertain global conditions.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as part of the company's commitment to keep stock exchanges and investors appropriately informed about material developments that could impact business operations.

Carysil Limited has announced the voluntary closure of its wholly owned Turkish subsidiary, citing persistent market challenges and economic instability that rendered operations financially unviable. The subsidiary, Carysil Ankastre Sistemleri Ticaret Limited Şirket (Carysil Turkey), was officially deregistered on March 4, following confirmation from the Republic of Turkey Istanbul Trade Registry Directorate.

Subsidiary Closure Details

Carysil Turkey was incorporated as a wholly owned subsidiary to establish the Carysil brand and promote the sale of kitchen sinks and allied products in the Turkish market. However, the operations faced significant challenges that made the business unsustainable.

Financial Impact Assessment

The financial contribution of Carysil Turkey to the parent company's operations was minimal, as evidenced by the subsidiary's performance data. The subsidiary reported zero revenue and maintained a negative net worth, representing only a fraction of the parent company's net worth.

Reasons for Closure

The decision to close Carysil Turkey was driven by multiple factors that affected the subsidiary's viability:

• Persistent financial losses and continuous erosion of net worth
• Economic instability and challenging geopolitical conditions in Turkey
• Limited scalability and minimal business activity
• Absence of viable business prospects for future growth

The subsidiary had incurred continuous losses, which continued through the recent period, making the operations financially unviable.

Regulatory Compliance and Next Steps

The voluntary liquidation process is expected to be completed within the next 3-4 months, with Carysil Limited committed to providing updates upon completion. The company will comply with applicable RBI/FEMA regulations regarding the write-off of investment and loan amounts, subject to receiving necessary approvals.

Carysil Limited has confirmed that this closure is not expected to have any material impact on the consolidated financial performance of the company, given the subsidiary's minimal contribution to overall operations.