Mangalam Organics , a leading chemical manufacturing company, has announced its unaudited financial results for the quarter ended June 30, 2020, navigating through the challenges posed by the COVID-19 pandemic.

Board Approval and Submission

The company's Board of Directors convened to review and approve the quarterly financial results. The meeting, which concluded at 1:50 p.m., was followed by the submission of the results to the stock exchange, accompanied by a Limited Review Report from the statutory auditors, NGST & Associates.

COVID-19 Impact on Operations

Mangalam Organics reported that its operations were significantly impacted due to the widespread lockdown measures implemented by government authorities to contain the spread of COVID-19. The company experienced plant and office shutdowns across various locations, disrupting normal business activities.

Phased Resumption of Operations

Following government directives, Mangalam Organics initiated a phased resumption of its operations in April 2020. This gradual approach allowed the company to restart its activities while adhering to the necessary safety protocols and guidelines.

Financial Assessment

The company conducted a thorough evaluation of the pandemic's impact on its business operations and liquidity position. Based on this assessment, Mangalam Organics concluded that no adjustments were required in the financial statements for the quarter under review.

Looking Ahead

While the company faces ongoing challenges due to the pandemic, the resumption of operations signals a step towards recovery. Mangalam Organics continues to monitor the situation closely and adapt its strategies to navigate the evolving business landscape.

Investors and stakeholders are advised to consider these factors while assessing the company's performance for the quarter ended June 30, 2020. As the situation remains fluid, Mangalam Organics remains committed to transparent communication and prudent management of its operations in these unprecedented times.

Mangalam Organics , a leading chemical manufacturing company, has announced a significant financial move to bolster its capital structure. The company's Board of Directors has given the green light for the issuance of Non-Convertible Debentures (NCDs) worth up to INR 60 crores through private placement.

Key Features of the NCD Issuance

The NCDs come with the following characteristics:

• Type: Secured, Unlisted, Unrated, Senior Non-Convertible Debentures
• Interest Rate: 12.50% per annum
  • 10% cash coupon
  • 2.50% redemption premium
• Tenure: 36 months
• Coupon Payment: Monthly at 10% annually
• Principal Repayment: Commences after a 15-month moratorium, in equal monthly installments
• Options: PUT/CALL options available from month 18 onwards, every six months

Security and Guarantees

The debentures are backed by robust security measures:

• First pari-passu charge with Saraswat Bank on fixed assets, including:
  • Land
  • Building
  • Plant and machinery
• Personal guarantees from:
  • Mr. Kamalkumar Dujodwala
  • Mr. Pannkaj Dujodwala

Financial Implications

This strategic move by Mangalam Organics is likely aimed at optimizing its capital structure and potentially funding growth initiatives or refinancing existing debt. The 12.50% annual interest rate, split between cash coupon and redemption premium, offers investors an attractive return while providing the company with a structured repayment plan.

Corporate Governance

The company's commitment to transparency is evident in its prompt disclosure of the NCD issuance details. As per the LODR (Listing Obligations and Disclosure Requirements) data, the Board meeting that approved this decision was held on August 18, commencing at 3:00 p.m. and concluding at 3:40 p.m.

Market Impact

While the NCDs are unlisted, this financial maneuver may have implications for Mangalam Organics' listed equity. Investors and market analysts will likely monitor how effectively the company utilizes this capital infusion and its impact on the overall financial health of the organization.

As Mangalam Organics moves forward with this NCD issuance, stakeholders will be keen to observe how this additional capital contributes to the company's strategic objectives and financial performance in the coming quarters.