Amines & Plasticizers Ltd — Regulatory Filings 2020

May 27, 2020

May 27, 2020

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To, Manager – CRD BSE Ltd., Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001

Dear Sir / Madam,

Sub: Disclosure under Regulation 30 of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015

Pursuant to Regulations 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Listing Regulations") and amendments thereto, read with SEBI Circular No. SEBI/HO/CFD/CMDI/CIR/P/2020/84 dated 20[th] May, 2020, we wish to provide para wise information as follows:

1. Impact of COVID – 19 pandemic on the business :

The spread of COVID 19 throughout the World including India has led to Nationwide Lockdown with effect from 24/03/2020. Accordingly, in strict compliance with the Order of the Government of Maharashtra, the Company’s Corporate Head Office & Plant / Production facilities which are located in Mumbai and Navi Mumbai in Maharashtra were closed thus disrupting the business operations of the Company. It has temporarily affected the production continuity, delayed scheduled deliveries and resulted in increased Inventory. It has thus expected to moderately impact the revenue and profitability of the Company for the first quarter 2020-21. However, due to its quick situational adaptation, upto-date Production facility and efforts of R&D Team, your Company could resume its activities partially and also ventured into the field of manufacture of goods essential in Pharmaceutical industries. The Management expects adverse impact on the Profitability of the Company in the range of 25 to 30% in percentage terms as compared to previous quarter 2020.

2. Ability to maintain operations including the factories/units/office spaces functioning and closed down:

At regular intervals, the Central and the State Government relaxed lockdown period and allowed certain essential activities to be carried out by following certain guidelines as prescribed. The Company, being in the production of chemicals which has End Use in Pharma Companies as well could start its operations with limited capacities. The Company thus in compliance with the advisories issued by the Government of India and the State of Maharashtra with respect to safety of everyone, partially commenced its operations. As of today, the Company’s production facility is operated at 50% of its capacity due to migration of labour and restriction on movement of employees from their residences to factory.

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As regards, functioning of Head office is concerned necessary arrangements are made for all executives to work from home except Accounts Department which is located in factory premises and could not function to its full capacity due to restriction on the number of persons allowed.

3. Schedule, if any, for restarting the operations:

The Company expects to operate to its full capacity whenever lockdown period gets eased out or in a phased manner in compliance with the advisories and directions of the Government of India and the State of Maharashtra as may be announced from time to time.

1. Estimation of the future impact of CoVID-19 on its operations results and financial health:

Since COVID 19 has been declared as a pandemic by WHO and there is no cure or vaccine in sight in the near future, the virus and its deadly spread could be a recurrent threat. It would therefore be improbable to estimate or assess its impact on the business operations, results and financial health of the Company. However, the Company continues to monitor the fast changing environment as it evolves, assessing the situation and will keep all the concerned updated on all the material developments. We expect adverse impact on the revenues, profits and resultant cash flows, the extent of which will depend on the containment of COVID-19 and the damage done by this pandemic. Conversely, if the Authorities succeed in containing the Virus and its spread or cure is found, the Company would be in a position to restore its production facilities to its full extent and can perform at its apex capacity.

5. Details of impact of COVID 19 on listed entity’s :

• a) Capital and financial resources: The Capital resources of the Company have not been affected. Financial resources have been affected to certain extent in the First Quarter of the Year which shall result in a lower turnover of the Company by approx. 50% as compared to expected turnover during Q-1. Adequate financial resources are available with the Company through internal accruals and working facilities from banks. The collection from receivables has been regular. However, there are possibilities of delayed receivables to the extent of 5 to 10% but payments are not doubtful. The Banks have been offering 10% additional facilities to meet the short term mis-match of cash flow. During the period of lockdown, the civil construction work and installation of additional machinery at plant has been stopped which shall result in delay and increase in cost to certain extent.

• b) Turnover & Profitability: Due to the spread of COVID 19 resulting in continued lockdown across the Country, the turnover in the First Quarter of FY2020-21 is estimated to be lower by apprx.50%. The Management is hopeful that if the lockdown is further eased or lifted in a phased manner, the Company expects revival of regular business activity in the second Quarter of FY 2020-21. Also, the cost of raw materials is expected to come down to a certain

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extent. However, under the existing circumstances the profitability is estimated to be reduced by approx. 30% in the First Quarter FY 2020-21.

c) Liquidity position:

Presently, the Company has enough liquidity to continue its operations and does not expect to face any severe liquidity crunch especially in the light of resumption of operations and the fact that lockdown should ease further.

Finance /Payment Obligations:

• i. All employees including contract workmen have been fully paid till 30th April, 2020 and the Management is confident of meeting May 2020 obligations too.

• ii. All vendors are being paid on due dates.

• iii. All statutory obligations have been discharged within due dates

d) Ability to service debt and other financing arrangements:

As on 30/04/2020, the Company is fully compliant with all its payment obligations. Also the Company does not have any significant short term debt which is required to be repaid in the current financial year except repayment towards its term loan. As far as interest is concerned, it has the ability to service the same regularly on due dates.

e) Assets:

In assessing the recoverabi1ity of the receivables, tangible and intangible assets and other financial and non-financial assets, the Company has considered internal and external information including economic forecasts available.The Plant & Machinery of the Company have been under regular maintenance and the Company has undertaken necessary maintenance on resumption of operation after the complete shut down. The Company has been in touch with its customers for clearance of dues. Also, the Company has been in touch with its customers across all markets to maintain its sales levels.

The Company has performed sensitivity analysis on the assumptions used and based on such information and assessment, the Company expects to recover the carrying amount of these assets. The Company will continue to closely monitor any material changes to future economic conditions.

• f) Internal financial reporting and control: The Internal financial reporting and control have been intact. Since the offices are closed due to lockdown, challenges in availability of documents and preparation of financial reporting are being faced as compared to the normal course. Also, most of the human resources are working from home thus facing difficulties because flow of information and documents are restricted due to non availability of new internet facility at residents. Financial reporting is delayed due to lockdown. All transactions are duly checked and authorised by concerned competent persons through emails.

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• g) Supply chain: Due to nationwide lockdown supply chain of non-essential goods is stopped 100%. Government has permitted the manufacturing for essential goods, import and export activities. Due to continuous spread of COVID 19 and addition of containment zones, availability of transportation is very difficult resulting in disruption in sales and increase in cost of raw material.

• h) Demand for its products/services: The Company, being in the production of chemicals which has End Use in Pharma Companies, PSU Refinery, Oil and Gas Companies, Textile and Cement Industries. Due to COVID 19 demand of our product has increased in Phama Industry by 20%. The Company has commissioned the expansion project of EMEA product. Further, as soon as the lockdown is lifted the Company expects utilisation of more than 80% of its expansion capacity. Management is of the view that demand of the products should not be affected to a major extent since the manufacturing activities are started in the international market.

• Existing contracts/agreements where non-fulfilment of the obligations by any party will have significant impact on the listed entity's business: There are no such contracts/agreements which would lead to non-fulfilment of the obligations by any party or shall have significant impact on the business.

• Credit rating :

ICRA has reaffirmed the long-term ratings as [ICRA] BBB+ (pronounced as ICRA BBB plus) and assigned Stable Outlook. The Company continues to enjoy [ICRA] A2 (pronounced as ICRA A two) rating for short term Credit facilities.

Kindly take the above information on your record.

Thanking you,

For AMINES & PLASTICIZERS LIMITED

Digitally signed by AJAY DEVIDAS PURANIK DN: c=IN, o=Personal, cn=AJAY DEVIDAS PURANIK, AJAY DEVIDAS serialNumber=4834597bfe3f6bc8ded35c18cb6f6d654a9dd64f7ecfbd844b75283b789525ac, PURANIK postalCode=400098, 2.5.4.20=86077f667fe7e5b116a41b98f83cd3e5e9936f9617414c2c2dc3646c2a9e4b36, st=Maharashtra Date: 2020.05.27 21:34:24 +05'30'

AJAY PURANIK President (Legal) & Company Secretary.

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