Dear Sir, Please find the attachment. Regards, For MRC Agrotech Limited Compliance Officer / Authorised Signatory
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
MRC Agrotech Ltd has disclosed details of a working capital management exercise executed on 27 June 2025 with Cicago Commodities Private Limited, an RBI-registered NBFC. Under the arrangement, the company assigned loans and advances worth approximately ₹7.30 crore (including principal and accrued interest) on a non-recourse basis at carrying book value. Out of this, ₹5.03 crore was used to simultaneously settle trade creditor liabilities. The company clarified that the counterparty is not a related party, the deal was done at arm's length, and it falls within the ordinary course of business. The disclosure was originally made on 10 July 2025 and is being revised with additional details as required by SEBI's July 2023 circular on assignment of loans and creditor payments.
The transaction is positive for liquidity in the short term, as the company converts receivables into cash and clears part of its trade payables, reducing current liabilities by ~₹5.03 crore. However, since the assignment is non-recourse, the company has effectively extinguished ~₹2.27 crore of receivables net of what was paid to creditors, so shareholders should weigh the liquidity benefit against the loss of those future inflows.