Multiplex chain operator Inox Leisure Ltd on Tuesday said it has sufficient liquidity to fund business operations for at least the next six months although cinema halls of the company are closed following the COVID-19 pandemic.

In a regulatory filing disclosing the impact of COVID-19, the company said it has also cut costs across all functions and departments and has also increased liquidity by adding additional lines of funding through short/long term debts.

Besides, Inox Leisure said it has also been engaging with its business partners -- developers and distributors and producers, making representations to state and central government for support, while also planning to utilise its resources better post opening or resumption of operations.

"The company's management believes that the aforementioned measures ensure that the company has sufficient liquidity to fund the business operations for at least the next six months and will further add liquidity by the additional term debts from the banks," the filing said.

It further said the company has enough liquidity to service debt.

As the government has been announcing phased lifting of the lockdown, the management believes that normalcy could be gradually restored during the financial year ending March 31, 2021.

"Consequently the company will be in a position to resume and continue its operations for the foreseeable future, thereby realizing its assets and discharge its liabilities as they fall due for payment in the normal course of business," it added.

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On the estimation of the future impact of COVID-19 on its operations, the company said a prolonged lockdown situation could result in company's inability to start multiplexes and it may be unable to operate at optimal capacity on account of government imposed social distancing norms for multiplexes in future.

Inox Leisure said its operations were shut down in line with the government directives with effect from March 23, 2020 due to the coronavirus pandemic.

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