Camlin Fine Sciences Ltd updates on penalty levied to Chinese JV

The joint venture partner Wanglong Technology Company Limited ("Wanglong Technology") on 28th February, 2021 that a penalty of RMB 159.32 million has been levied by Supreme Court of China on Wanglong Technology for alleged infringement of intellectual property used in the process for manufacturing Vanillin. Out of the total penalty imposed on Wanglong Technology, 7% of the aforesaid penalty amounting to RMB 11.15 million has been attributed to our joint venture, namely CFS Wanglong Flavors (Ningbo) Company Limited ("CFS Wanglong"). CFS Wanglong is a joint venture of the Company in which Wanglong Technology hold 49% and the Company holds 51%.

In terms of the shareholders agreement entered into with Wanglong Technology, Wanglong Technology is required to indemnify CFS Wanglong from any economic consequences emanating from any such infringement.

CFS Wanglong is awaiting a translated copy of the court order and is in the process of seeking legal advice in relation to this order including taking appropriate steps to resume operations. Until then, as an abundant caution, CFS Wanglong has decided to extend the maintenance shut-down of its plant located in Xiaocao's Town, Yuyao City, Zhejiang Province, China. In the Financial year 2020, CFS Wanglong contributed revenues amounting to INR 17,652.61 lakh [16.83%] of the total consolidated revenues of the Company and incurred loss of INR 2,034.92 lakh. The networth contributed by CFS Wanglong during Financial Year 2020 was INR 2,635.54 contributing to 6.54% of the consolidated networth of the Company.

Shares of CAMLIN FINE SCIENCES LTD. was last trading in BSE at Rs.134.75 as compared to the previous close of Rs. 128.9. The total number of shares traded during the day was 227363 in over 3435 trades.

The stock hit an intraday high of Rs. 139.9 and intraday low of 124.7. The net turnover during the day was Rs. 30366332.

Source : Equity Bulls

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