Intimation under regulation 30
Awaiting price reaction for this filing.
SRM Energy Limited has informed the stock exchange that Spice Energy Private Limited has written off the full outstanding loan of Rs. 3,57,40,630.70 (approximately Rs. 3.57 crore) that was previously given to SRM Energy. As a result of this write-off, SRM Energy's liability of around Rs. 3.57 crore will be completely removed from its books of accounts. The company will account for this in line with applicable accounting standards. This essentially means SRM Energy no longer needs to repay this loan amount to Spice Energy.
Positive for shareholders — the extinguishment of a Rs. 3.57 crore liability will improve the company's net worth and strengthen its balance sheet, with the gain to be recognized as income per accounting standards.