PT Sri Rejeki Isman Tbk. (SRIL) aka Sritex will hold an annual general meeting of shareholders on Friday, May 28, 2021. One of the agenda items of the meeting is a request for approval from shareholders for changes in the company's business activities.

In the disclosure of information on the Indonesia Stock Exchange (IDX) website on Wednesday, May 26, 2021, Sritex said that it would increase its business to produce masks made of cloth and also produce personal protective equipment (PPE). This is in line with the increasing need for these items during the Covid-19 pandemic.

Regarding the plan to increase the production business of cloth masks and PPE, Sritex has assigned PIC as a professional expert. The person appointed was an Indian man, Kumar Jain with 38 years of experience in the textile industry in the fields of production management, quality system management, product development, and international marketing.

Through the support of existing technology and human resources, the company has received the ISO 16604 Class 3 Certificate on April 28, 2020 and received approval for international standards by the United Nations (UN) Agency and the World Health Organization (WHO) on June 1, 2020.

The issuer with the SRIL stock code projects a profit on business activities this year of Rp 30.46 billion with revenues of Rp 208.86 billion.

As for 2022, the company projects a decline in profit and revenue to Rp 8.9 billion and Rp 116.9 billion, respectively. Profits are projected to decline because of the prediction that the Covid-19 pandemic will reduce sales volume.

Then in the projections for the following years, SRIL projects that revenue and profits will gradually increase until 2025.

Since the beginning of 2020 when the Covid-19 pandemic entered Indonesia, Sritex saw that the need for sanitation items and PPE was very high so that the shortage of stock was felt by Indonesia. Even if the stock is there, it is sold at a high price.

"Moved by the enthusiasm to help Indonesia meet the needs of facing the corona virus, the company took the initiative to produce masks from cloth as well as producing PPE," the company wrote.

Previously, trading in SRIL shares was temporarily suspended since last Tuesday, 18 May 2021 by the IDX. Trading termination was due to the unrealized payment of the principal and interest of the medium term notes (MTN) which Sritex was supposed to pay the day before, 17 May 2021.

The AGMS was held after the textile and garment issuers officially assumed the status of Temporary Postponement of Debt Payment Obligations (PKPU) on May 6, 2021. This status was given after the commercial court judges at the Semarang District Court granted PKPU CV Prima Karya's lawsuit to Sritex.

That way, Sritex and its three subsidiaries, namely Sinar Pantja Djaja, Bitratex Industries, and Primayudha Mandirijaya officially in PKPU Provisional for 45 days after the verdict was knocked. Likewise with its rayon fiber raw material factory, PT RUM, which had PKPU status on the same date.

Meanwhile, the last Sritex business entity with PKPU status is PT Senang Kharisma Textil. Having escaped the lawsuit of PT Bank QNB Indonesia, Senang Kharisma Textil was sued by PKPU by Nutek Kawan Mas.

This means that currently there are six companies related to Sritex with PKPU status. The six companies are PT Sri Rejeki Isman Tbk (SRIL), PT Rayon Utama Makmur (RUM), PT Sinar Pantja Djaja, PT Bitratex Industries, PT Primayudha Mandirijaya, and PT Senang Kharisma Textil.

The lawsuit filed against the six Sritex Group companies was filed by four different parties ranging from PT Swadaya Graha, CV Prima Karya, Bank QNB Indonesia, PT Nutek Kawan Mas and a cargo company namely PT Indo Bahari Ekspress.