Submission of Reg 54- Asset Cover Details
Awaiting price reaction for this filing.
Ramasigns Industries has filed an asset cover certificate for its Rs. 7.2 crore unsecured, listed, redeemable non-convertible debentures. The certificate by R. Mehta & Associates reveals that the company has NOT complied with financial covenants (Clauses 9.8 and 9.9 of the Debenture Trust Deed) and has failed to pay interest and principal to debenture holders on time for the month ended 31 March 2025. The asset cover ratio stands at 6.78 for secured assets and 2.515 for unsecured lenders, with total unsecured borrowings of around Rs. 10.18 crore. Debt-equity ratio will rise from 0.18 to 0.74 after the proposed NCD issuance.
This is a significant red flag for shareholders — the company has defaulted on its debt obligations to debenture holders, which could trigger penalties, legal action, and a likely credit rating downgrade. Existing equity holders should expect heightened credit risk and potential erosion of value if the default leads to wider financial stress.