New Delhi: Difficult times in the real estate market has caused real estate firm Arihant Superstructures Ltd (ASL) to cut interest rate on the loans given to it by its promoters. Even the Managing Director of the firm will go without remuneration for six-month period.
The interest rate on loans given by promoters of ASL will earn an interest rate of only 8 percent for the 2019-20 fiscal, as compared to an interest rate of 15 percent agreed between the company and the promoters earlier.
The company also accepted the Managing Director’s request of not taking any remuneration for the six-month period starting October 2019.
“Considered and took note of letter received from the Managing Director of the company for forgoing the right to receive remuneration from October, 2019 to March, 2020,” the company said in an investors presentation for the second quarter of the 2019-20 fiscal.
These decisions have been taken in view of the “tough environment” prevailing in the real estate market.
Even the loans given by the promoters of Arihant Abode Ltd to it will now earn an interest of just 8 percent for the 2019-20 fiscal, as against an interest rate of 15 percent agreed between Arihant Abode Ltd and its promoters earlier.
Arihant Abode Ltd is a subsidiary of ASL in which ASL holds 60 percent stake.
ASL reported a net loss of Rs 1.4 crore for the second quarter of 2019-20 fiscal as compared to a net profit of Rs 2.1 crore in the same period of the previous fiscal.