Ambuja Cements Ltd. — Regulatory Filings 2020

Jul 26, 2020

Ambuja Cement

AC:SEC: 25

th July 2020

Bombay Stock Exchange LimitedPhiroz Jeejeebhoy Towers,Dalal Street, Mumbai –400 023Scrip Code: 500425	National Stock Exchange of India Ltd.,Plot No.C/1 'G' BlockBandra –Kurla ComplexBandra East, Mumbai 400 051Scrip Code: AMBUJACEM
Deutsche BankTrust Company AmericasWinchester House	Societe de la Bourse de Luxembourg,Avenue de la Porte NeuveL-2011 Luxembourg,
1 Great Winchester StreetLondonEC2N 2DB,Ctas Documents<ctas.documents@db.com< td="">B.P 165"Luxembourg Stock Ex-Group ID "<ost@bourse.lu< td=""></ost@bourse.lu<></ctas.documents@db.com<>	B.P 165"Luxembourg Stock Ex-Group ID "<ost@bourse.lu< td=""></ost@bourse.lu<>

Dear Sirs / Madam

Subject: Advisory on disclosure of material impact of COVID-19 pandemic on listed entities under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('LODR Regulations / LODR')

The Company has vide its letters dated 23rd March, 2020 and 17th April, 2020 informed the stock exchanges about suspension of operations across its locations on account of nationwide lockdown due to outbreak of COVID-19 and subsequent resumption thereof keeping in line with the guidelines issued by the Government of India / States for resumption of manufacturing activities.

With reference to the SEBI Circular: SEBI / HO / CFD / CMD1 / CIR / P / 2020 / 84 dated 20th May, 2020, seeking disclosure from listed entities on the impact of the COVID-19 pandemic on their business, performance and financials, to the extent possible and inform to the stock exchanges on the same.

1. Impact of the COVID-19 pandemic on the business;

In view of the outbreak of COVID-19 pandemic, the Company had to temporarily suspend its operations at all its locations from 25th March, 2020 in line with the Government directives. Pursuant to the Order of the Ministry of Home Affairs dated 15th April, 2020, the operations at various locations were resumed in compliance with the said Order and guidelines / Standard Operating Procedure (SOPs) issued by the relevant authorities.

The closure of operations across all locations had an adverse impact on the volumes and Sales revenue of the Company.

Ambuja Cement

2. Ability to maintain operations including the factories/units/office spaces functioning and closed down; Schedule, if any, for restarting the operations; Steps taken to ensure smooth functioning of operations;

During the period of suspension of operations and even thereafter, the Company took number of steps to ensure health & safety of all its employees, their family members and connected stakeholders. A Business Resilience Team (BRT) was set up to closely monitor, guide and report the actions taken at Corporate and across all our sites.

In order to mitigate both the human and financial impact of the situation, the Company had also launched an immediate execution of the action plan covering areas of 'Health, Cost and Cash'.

Emergency Health Response system were put in place with clear instructions on actions to be taken such as isolation and quarantine, wherever required. All travel suspended and meetings were conducted through audio and video conferencing. Online awareness campaign on hygiene practices, social distancing, and use of Personal Protection Equipment (PPEs) are conducted. Work from Home was introduced at almost all the locations even before the same was made mandatory by the Government.

Operations at plants commenced in a phased manner from 20th April 2020, taking into account the directives from the Government. Post resumption of operations, the Company has put in place adequate systems and processes for strict adherence to the post lockdown guidelines to ensure health and safety, social distancing, hygiene practices, use of PPEs etc.

3. Estimation of the future impact of CoVID–19 on its operations :

As on date, all integrated plants, grinding units and bulk cement terminals are operating to serve our customers. The pandemic has resulted in overall slowdown in the economic activities. Economic activities have resumed post Government's decision to unlock the country in a phased manner. The future impact on the business operations is, however difficult to assess at this point.

4. Details of impact of COVID-19 on listed entity's - capital and financial resources; liquidity position; ability to service debt and other financing arrangements; assets; internal financial reporting and control;

The company is debt free with adequate cash reserves, a comfortable liquidity position. The Company expects to recover the carrying amount of all financial and non-financial assets.

Despite disruption, due to the lock down situation, all financial reporting was in time and controls were adequately maintained. The Company could also publish its unaudited financial results for the quarter ended 31st March 2020 as per planned date i.e. 27th April 2020 and its unaudited financial results for the quarter and half-year ended 30th June 2020 on planned date i.e. 24th July 2020.

Ambuja Cement

5. Existing contracts/agreements where non-fulfilment of the obligations by any party will have significant impact on the listed entity's business;

None

6. Work on Corporate Social Responsibility (CSR) front :

The Company has a long history of reaching out to communities and people in need. With the advent of COVID-19, the Company stepped up its CSR efforts to assist hundreds of thousands of impacted people like daily-wagers, slum-dwellers, and migrant labourers stranded across the country due to the lockdown.

The Company's model of engaging with community stakeholders through the Ambuja Cement Foundation (ACF) enabled us to reach out to nearly 700,000 people in 2,000 villages across the country, to help fighting the pandemic. The Company also partnered with three reputed Non-Government Organization (NGOs) to support migrants of Mumbai and Delhi with food packets and rations. Ventilators were donated to government hospitals in Maharashtra, and hundreds of PPE kits and masks were given to healthcare workers.

Please take the same on record.

Thanking you,

Yours faithfully, For AMBUJA CEMENTS LIMITED

RAJIV GANDHI COMPANY SECRETARY Membership No A11263