Burnpur Cement Ltd, a small cement producer based in eastern India, has said in a regulatory filing that its repayments had turned “irregular” with lenders because of “depressed” market conditions. It said it had fallen behind on repayments because its cash flow had been impacted by demonetisation.
Burnpur Cement is looking to raise its production capacity from 600,000 tonnes, spread between two units, to 3 million tonnes (MT) per annum at a cost of Rs 500 crore. The firm, which reported revenue of Rs 88 crore and a net loss of Rs12.7 crore in 2015-16, had long-term borrowings of Rs 202 crore as of 31 March. It also had around Rs 39 crore of short-term liabilities, or those that it had to pay off within a year.